We are lost about other terms and conditions that affect our policy. One of the most complicated components of insurance to assess is its premium. Some policies offer yearly premium payments, some half-yearly, and other monthly. While most of the insurance companies will have insurance premium calculators, you must also know the dynamics behind calculations. Here's how to calculate insurance premium.
For car insuranceThe car insurance premium is dependent on the following factors:
- Age and type of the vehicle
- Geographical zone
- Insured Declared Value (IDV) of the vehicle
- Cubic Capacity (cc) of the engine
Third party coverThird party cover is for any damage caused to a property or person in the event of an accident by your vehicle.
Own damage coverPopularly known as OD, this cover reimburses the expenditure if the car is damaged as a result of any natural events such as fires, earthquakes, storms, etc. or accident.
Personal accident coverThis component of your car insurance is for you in the event of an accident. This will ensure that you get the financial help you need during any unforeseen events.
For life and Medical insuranceYour health and life insurance premiums are calculated based on several factors that may affect your health. Here are a few of them.
- Smoking habits
- Pre-existing medical conditions
- Family size
- Geographic location
- Health conditions
- Work-related health hazards
Now that you know the basics behind what goes into calculating premiums, probe further, and understand other details about insurance. Understand everything about securing yourself from unforeseen circumstances so that you pick the best policy for yourself and your loved ones. Financial security is one of the best gifts you can give your family and to yourself.
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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.
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