Getting a car insurance plan is part of being a car owner, but that does not mean it has to be expensive. You can reduce your car insurance premium by simply using a car insurance premium calculator. This tool allows you to calculate the ideal premium for your car by taking into account multiple parameters.
In this article, we will explore how to use car insurance premium calculators for our benefit.
What is a Car Insurance Premium Calculator?
A car insurance premium calculator is an online tool that helps you calculate the premium for your car after considering important parameters such as model, variant, build, age, RTO and more.
It’s a quick and useful way to calculate your comprehensive car plan price since your insurer sets these prices, unlike the third-party car insurance price, which is determined and set by the IRDAI
How Can You Make A Car Insurance Premium Estimate?
To make an accurate estimation of your car insurance premium, you need to first identify:
- Your car specifications (Make/Model, Age, Fuel Type, etc.)
- Your desired coverage
- Your desired list of add-ons
- No Claim Bonus (NCB) Discount (if applicable)
Now, input these details into your chosen insurer’s online car insurance calculator and click “Calculate”.
Car Insurance Premium Calculation Formula
| Car Insurance Premium = Own Damage Premium – (Discounts + No Claim Bonus) + Third Party Car Insurance Premium |
Own Damage Premium Formula
| Own-Damage Premium = IDV x [Premium Rate (decided by the insurer)] + [Add-Ons] – [Availed Discounts and Benefits] |
IDV Calculation Formula
| IDV = (Price Listed By The Manufacturer – The Depreciation) + (Cost of accessories not added in the listed price – Applicable Depreciation) |
How to Lower Car Insurance Premium?
Compare Insurance Rates
It is advisable to compare the various car insurance premiums available. Use a car insurance calculator online to determine the best car insurance plan for your vehicle.
Opt for Higher Deductibles
Choosing to pay higher deductibles during your claims is another way to reduce your car insurance premium. However, you need to be sure of your ability to pay the deductible amount every time you file a claim if you’re choosing to go down this route.
Choose A Plan As Per Your Car Age
You should choose an insurance plan as per the age of your vehicle. If you have a new vehicle, you can opt for a comprehensive plan but if you own a vehicle aged 5 years or above, then going for a third-party insurance plan may be a more cost-effective option.
Avoid Unnecessary Add-Ons
Although add-ons in car insurance allow you to have more coverage for the safety of your vehicle, you must opt for add-ons based on what coverage you genuinely need. Add-ons come with an extra fee, so only pick the ones you are sure you need.
To Wrap It Up
Car insurance premium calculators are powerful tools that help you save money by providing transparency and flexibility. You can identify the best deal for your needs by comparing multiple plans, adjusting your coverage and experimenting with different variables.