Car Insurance Calculator: Learn About Your Premiums
It is very important to budget your finances these days. With the expenses constantly rising, you literally don’t have any other option! Budgeting the various overheads can help you in better financial management. Car insurance is a common expense that definitely needs budgeting. You can use an online car insurance calculator to learn about your premiums before you buy the policy. Take a look at this article to know how an online car insurance calculator works and how it helps you.
What is an Online Car Insurance Calculator?
An online car insurance calculator is a tool that helps you compute your car insurance premium liability before you buy a policy. To get the quote you simply have to enter the following details:
- Ownership details of the vehicle
- Information about the previous car insurance plan
- Vehicular details including the registration, engine and chassis numbers, date of purchase, model and make.
Once you enter these details, the available plans will be shown to you and you can see how much premium is associated with each available car insurance plan.
What are the Advantages of using an Online Car Insurance Calculator?
There are many advantages of using an online car insurance calculator. They are:
- Gives you an idea: You get a fairly good idea about the costs of the type of car insurance cover you are looking at. This helps you budget your finances and keep a suitable amount of money aside for your car insurance needs. It also keeps you updated about the different players in the market.
- Helps you compare: As we all know, comparing the various car insurance plans is a very useful thing to do. You get to find the best plans at the best rates. When you use an online car insurance calculator, the plans are automatically compared and you instantly get the results.
- Changes in premium: You can also feed additional details related to extra covers into the calculator and see how your added requirements affect the premium rates. This once again helps you in assessing your finances and seeing what is affordable and what is not.
- Unbiased opinion: An online calculator provides an unbiased opinion on the available plans and their rates. Agents often are biased and push certain insurance plans for their own benefits. However, the online calculators eliminate this problem and help you in taking a neutral decision.
Factors that Affect the Car Insurance Premiums
The calculator tells you how much premium you will have to pay. But what are the factors that determine these rates?
- Make and model of the car: The more expensive your car is, the higher the insurance plan will cost. This is simply because a costly car has costly spare parts too and requires more money to fix.
- Motor transmission type: In case you initially have a manual transmission car but later thought of modifying the same to automatic transmission, your car insurance premium would be impacted. Therefore, check with your insurer about the type of the transmission that might affect your premium.
- Car’s fuel type: The type of fuel your car requires also impacts the car insurance premium calculator.
- Type of coverage: The third-party cover is compulsory and cheaper too. However, the comprehensive cover offers hosts of coverages at a higher rate than the third-party premium. Therefore, your choice of the type of the coverage does play an important role in impacting your car insurance premium calculator.
- Engine capacity: The cubic capacity of your car influences the third-party premium of your car. Higher the engine capacity of your car, higher would be the premium too.
- Add-on covers: Add-ons enhance your basic insurance cover by offering extra coverage by paying an extra premium. Add-ons like zero dep cover, passenger cover, accessories cover etc. are useful but should be bought only as per your requirement. This is one of the important factors that influence your car insurance premium calculator.
- Geographic location: If you live in a tier one city, you will be asked to pay a higher car insurance premium as compared to the residents of a tier two city.
- Age of the car: With age, the car begins to wear out. The IDV of the car gradually decreases and so does the cost of insurance.
- Gadgets: A car insurance plan offers protection against unfortunate events such as thefts and accidents. So if you have some anti-theft devices and other such gadgets that lessen the chance of a claim, you will get a discount on your plan.
- No claim bonus (NCB): If you have an accumulated NCB, you can definitely expect to get the car insurance plan at a discounted rate.
Use a car insurance calculator before you buy a motor insurance plan. You will get a good idea about the amount of money you will have to spend on your policy. You can then make the arrangements and smoothly get your plan on time.