A dynamic tool used to calculate the accurate amount of premium on different policies, car insurance premium calculator allows the buyers to compare and select the right car insurance policy based on customized requirements.
This is one of the biggest advantages of buying car insurance policies online where such insurance calculators help finding the best available car insurance policy on the basis of the below information provided by buyers:
a) Registration details of the vehicle
The premium amounts start decreasing with the age of the vehicle as the insurance service provider will take vehicle’s depreciation value into account.
b) Details of the car
One of the important parameters used by premium calculators for calculation is essential car details such as manufacturer, make, model of the car, etc. The amount of premium generally goes up in case of high-end cars and commercial vehicles.
The amount of premium also varies based on the geographical region. For metro cities, the amount of premium is generally higher due to the increased level of risks and high traffic density as compared to tier 2 or tier 3 cities.
Benefits of Car Insurance Premium Calculators
There are several benefits of using car insurance premium calculators. Some of these are discussed below:
- Provides instant results and is pretty simple to use from the comfort of one’s own house.
- Using the insurance calculators allows the buyers to avoid the hassle of dealing with insurance agents and inaccurate premium calculations.
- Allows the buyers to choose the best policy by comparing different quotes along with the convenience of changing the variables before deciding the right premium and policy.
The simple formula used to calculate premium using car insurance premium calculators is:
Premium Amount = Premium for own damage – (No claim bonus + discounts) + Liability Premium + Additionally cost of Add-ons
Learn Everything About Car Insurance Premium Calculator
Car insurance premium calculator is an efficient tool offered by different insurance service providers during the process of buying vehicle insurance online. Here is everything you need to know about the premium calculators:
a) Where to access
Buyers can access car insurance premium calculators at the website of the respective insurance company. Additionally, reputed online marketplaces such as Coverfox.com are an excellent medium to access and compare policies of various insurance companies at one place using their car insurance premium calculators.
b) The benefit of the instant quote
The main benefit of the premium calculator is the availability of instant insurance quotes for car insurance policy and the exact premium amount that the customers need to pay.
c) Simple and convenient to use
Car Insurance Premium Calculator is extremely simple to use by just filling in some basic information about the buyer (name, address, and contact details) and vehicle (registration year, make, model, fuel type etc.)
Why Is It Important To Know About Insurance Premium Calculator?
Once you’ve decided to use the car insurance premium calculator, it is important to know and understand the various nuances of using the tool. Car Insurance Premium Calculator is the most effective and accurate method to know the exact premium amount that the customer needs to pay for insuring their vehicle.
There are multiple factors that affect the premium calculations derived using the car insurance premium calculators. Few of these are discussed below:
a) Age of the Car
Premium amount is directly proportional to the age of the car. As the car gets older, both depreciation and other risks related to car increase which leads to a higher premium. However, there are several other factors to be taken into account here including IDV, safety features in newer cars, etc.
b) Insured declared value
Yet another essential factor that helps in determining the car insurance premiums is the Insured Declared Value (IDV). The IDV is the estimated current market value of the car as per the insurance service provider at the time of first-time car insurance online application.
The general formula used to calculate IDV is-
Insured Declared Value = Listed price of the vehicle by manufacturer – depreciation
The IDV of the car is the maximum amount allowed for claims in case of events such as accident or theft. It is important to note that IDV keeps changing over time depending on the depreciated value of your car.
Smart Buying With Insurance Premium Calculators
Using the car insurance premium calculator, buyers can calculate the premium online easily as well as compare the various policies from different insurance service providers. To make the choice easier, Coverfox.com allows you to access the insurance quotes of various top-notch insurance companies and make an easy selection as per your individual needs.