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What are the Benefits of a Car Insurance Calculator?

With the Motor Vehicles Act, 1988 making it mandatory to buy a car insurance for every car plying on the road, Car Insurance is no more an unknown term. However, most people, like every insurance product, buy the car insurance without much research and knowledge about the benefits and term and conditions of the policy. Often the language used in the policy papers are confusing and many of us do not fully understand and either buy a policy that does not suit much to our needs or end up in a situation where our claims are being rejected by the insurer.

A Car Insurance Calculator comes in handy in situations as such! It not only assists and makes you equipped with all the knowledge about the policy but also saves time and hassles of visiting the insurer’s office or talk to the agents. A car insurance calculator helps you buy a car insurance plan by weighing your needs and requirements and purchase a suitable policy in accordance with your needs in a cost and time effective manner. Few benefits of using a car insurance calculator are:

  • Using a car insurance calculator needs the customer to enter a detailed information on personal information and details of the vehicle. The calculator then takes into account all the entered details to display a variety of plans suitable for the buyer.
  • Along with the suggestions on the variety of plans available for the buyer suiting his needs, the car insurance calculator also calculates the premium amount for the insurance the buyer plans to buy considering the needs and requirements.
  • A car insurance calculator helps the buyer make an informed decision during the purchase by comparing the various car insurance plans available as per the personal specifications.
  • It saves time and is simple to use with few clicks of the computer mouse!
  • With changing parameters of the customer’s needs the calculator works dynamically to display the premium amount changing for a variety of needs.
  • It is convenient, saves money and prevents the buyers from being influenced by the often ‘ill-informed’ agents.
  • A car insurance calculator is suitable for both new and used cars.

Basics of using a Car Insurance Calculator

It is crucial to buy the right car insurance policy keeping in mind own liabilities and that of the third party. While the premium rates vary with a different insurer, they do not vary with higher margins as the factors considered are almost the same by every insurer. A car insurance calculator is more robust and takes into account all the factors that determine the premium of a car insurance while suggesting you the right plans as per your need. Few of the details that your car insurance premium is dependent on are:

  1. Age and Gender of the Buyer: Since the younger generation are likely to be more reckless drivers, the lower the age, the higher is the premium. Usually, buyers in the age group of 18-25 pay higher premium.
  2. Details of the car: Luxury cars, for obvious reasons, have higher premium amounts for the policy compared to budget cars.
  3. Fuel Variant: A CNG fitted car would demand higher premium than a petrol or diesel car.
  4. Geographic location: The place you reside and will be using the car also plays a part in determining the premium. Zone A cities- metropolitan or urban cities have higher traffic and likely to experience frequent accidents compared to Zone B cities and thus one must shell out higher premium.
  5. Type of Insurance Cover: A comprehensive cover costs more than a third party liability cover.
  6. No Claim Bonus: If you have an existing car insurance policy, no claims in the first year lowers the premiums for the following year as ‘No Claims Bonus’.
  7. The registration year along with the registration number will be the first few significant details to be entered for determining the premium. The older the car, the lower is the IDV and thus one pays lesser premium.

The car insurance calculator helps one when buying a plan for a used car with few additional details to the new car insurance: The change of ownership details, any prior claims and existing policy.

Significance of Car Insurance Calculators

Car insurance cover helps one understand the need for a comprehensive or a third-party liability cover, keeping in mind personal preferences. It is a time efficient and cost-effective way of narrowing down the buyer’s choices of insurers and select the one suitable with needs with the premium calculated in seconds with utmost accuracy. There are online websites like Coverfox which will help you get a list with all relevant details.

Since the occurrences on the road are not always our fault or in control, buying a comprehensive policy saves you from burning your pocket during an accident. So, while you are buying a policy, use a car insurance calculator and consider the overall need and not just blindly purchase a policy for the sake of buying or because the insurer offers lowest premium rates!