Car Insurance Premium Calculator: All You Need to Know

With the advent of new insurance providers, the scrutinization of available car insurance options can be an arduous task. The sole objective of exploring options is to find the most cost-effective insurance that gives a good value for money and the coverage as per your set of requirements. Therefore, to ease this selection process, insurance premium calculators prove to be a helping hand.

A car insurance calculators is an estimator that computes the premium you will be required to pay for a particular car insurance policy. It works by taking in some essential inputs related to your car to compute the exact premium.

Generally, the following are some basic inputs that you have to enter while using a calculator.

• Buy or Renew Your Car Insurance Policy: If you are renewing a policy, you will be asked to mention details about the previous policy such as claims filed, policy no., etc.
• Insurance Type: You can choose between OD (Own Damage) and TP (third-party) or both.
• Car Details: This would usually include details such as car model, fuel type, variant, engine capacity, registration number, year of manufacture, etc.
• Previous Policy Details: In case you are renewing your car insurance policy, you will have to mention details such as policy no, insurance company name, claims filed in the year, etc.
• Contact Details: This would usually include your details such as name, mobile number, email id, GST No. (if applicable), etc.

Once you fill in the required details and submit, you will be shown a quote offered by various insurance providers. Here you can customize your policy (change IDV, add/remove add-ons, etc.) and see the effect on the premium in real-time.

In India, it is mandatory to get your vehicle insured. Though the flexibility of choosing either a comprehensive or a third party insurance policy is advantageous, it brings with itself a certain set of challenges and these challenges can be easily confronted through car insurance calculators .

• Zero or Nil Depreciation Cover
• Return to Invoice (RTI) Cover
• NCB Protection Cover
• Engine Protection Cover
• Tyre Cover
• Consumables Cover
• Road Side Assistance Cover
• Key Replacement Cover
• Emergency Travel and Hotel Expenses Cover
• And More.

1. Time Effective: Using a car insurance premium calculator is both cost and time-effective.
   You're not required to visit the offices of various insurance providers or listen carefully to insurance agents. The quotes from various insurance providers can be viewed on a single page. Once you have shortlisted and compared all the policies available, you can make the decision quickly based on your needs and requirements.
2. Setting the IDV: Insured Declared Value or IDV is the maximum amount that the insurer promises to compensate you in case of theft or total damage of your car. Some companies may quote you a lesser premium at the cost of reduced IDV. However, this may not only impact your coverage but can also have a bearing on the resale value of your car should you choose to sell it in that year.On the other hand, setting the IDV too high may not be advantageous either. Insurance companies follow IRDAI (Insurance Regulatory Development Authority of India) guidelines while settling claims in such cases.With the help of calculators, you can set the IDV as per your requirements and select a policy that offers the right balance between coverage and premium.
3. Help You Decide Add-ons Over and above the basic coverage, you can take some extra coverage by adding some add-ons. Some of the add-ons most insurers offer are;
4. Using such calculators, you can customise your insurance policy by adding or removing certain add-ons. These add-ons have a bearing on the overall premium amount of an insurance plan. Therefore, you can easily select the respective add-ons after taking into consideration the increase or decrease in the amount of premium.
5. Helps in Finding the Right Insurer Insurance sector in India has seen a steep rise in competitive participants over the years, and with the entry of every new insurer, the task of choosing the best becomes slightly difficult. With the premium calculators, it becomes easier to select the right insurer based on their claim settlement ratios and offerings provided.
6. Facilities Comfortable Decision Making A car insurance premium calculator helps you select an appropriate insurance policy conveniently from your home after analysing all given options. By doing so, you make a conscious decision without the noise of agents trying to convince you to buy a policy that would benefit them the most.

Premium calculators bring a host of benefits. By choosing the policy for your vehicle through these calculators, you can be assured of comfort, time-saving, superlative coverage offered, and cost-effectiveness. Utilize the benefit of insurance premium calculators today and select the best insurance option for your car.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.