How Vehicle Insurance Premium Calculator is Beneficial?

The third Party vehicle Insurance is mandatory in India, however, one should not buy a vehicle insurance policy only due to compulsion. It would be a wise move to know the benefits of a motor vehicle insurance policy to make a prudent decision. Here, you are advised to buy a comprehensive vehicle insurance policy that provides cover against loss/damage caused to a third party & your own vehicle and covers your bodily injury as well.

Now, when you are looking to get a vehicle insurance, it is imperative to check out the cost available with different general insurers. Vehicle Insurance Premium Calculator is the best feasible way to know the exact premium that you need to pay for purchasing the insurance policy for insuring your vehicle.

Benefits of Vehicle Insurance Premium Calculator

Vehicle Insurance Premium Calculator helps you to determine the premium amount of the insurance policy one intends to buy. Every vehicle owner may have their own specific requirements and the premium calculator helps you choose the right vehicle insurance policy, the basis of your needs and requirements.

You just need to log on to the online portals and fill the required details such as the registration number of vehicle, registration year, manufacturer, model & variant, etc. and the vehicle premium calculator will display the insurance policies depending on the inputs you provide.

Vehicle Insurance Premium Calculator is a cost effective tool, as you don’t have to pay any penny for knowing the premium cost and can compare plans online. It also saves your time, as you can calculate the vehicle premium in just a few minutes. You can also use commercial motor vehicle insurance premium calculator to compute insurance premium for your commercial vehicle.

Parameters on which Vehicle Premium Calculator Works

Vehicle Insurance Insurance Calculator calculates premium on the basis of following parameters.

  • Registration Number: Registration Number is the first input that you need to provide for calculating premium for vehicle insurance.
  • Registration Year: Year of Registration/age of the vehicle plays a key role in determining the premium amount. The older the vehicle, the less is the IDV and lower is the premium. As your vehicle is getting older, the insurance company will put higher depreciation and you can claim vehicle damages for a lesser amount.
  • Type of Insurance Cover: Vehicle insurance premium calculator also considers whether you are choosing a third party or a comprehensive insurance cover. Choosing a third party cover will cost you less, as it covers losses for third party caused on your fault. However, it is advisable to opt for comprehensive cover, as it covers loss/damage for both third party and own damage.
  • Geographical Location: The location where your vehicle is registered, is also considered for calculating the premium amount. If your vehicle is registered in Zone A (major metro cities), you will be charged with a higher premium than Zone B (rest of India). Zone A cities carrying higher risk due to higher theft incidents and higher traffic that lead to accidents are therefore, charged with the higher premium.
  • Manufacturer, Model & Variant: You also need to provide details for Vehicle Make, Model & Variant. High end cars such as Audi are insured at a higher price in comparison to budget cars such as Alto and Santro. For insuring SUVs, you also need to pay higher premiums. When insuring commercial vehicles, you also need to pay higher premiums.
  • Fuel Type: While calculating premium, you also need to provide input whether you are using a petrol, diesel or CNG/LPG based vehicle. Diesel and CNG/LPG based vehicle are charged with a higher premium than for a petrol-based vehicle.
  • No Claim Bonus (NCB): If you have a claim-free year, you can receive a No Claim Bonus benefit that can provide you the discounted premium rates in the following year. The accumulated NCB can lower down the cost of vehicle insurance.

Vehicle Insurance Premium Calculator helps you know the exact premium amount that you need to pay. You just need to provide some details regarding your vehicle and premium calculator will display the premium amount within a few seconds. Here, you only need to choose the best vehicle insurance policy that suits to your need and budget.

Harjot Singh Narula

Harjot Narula is founder and CEO of ComparePolicy.com, an IRDAI approved insurance web aggregator focussed on selling online insurance for companies. Harjot has more than a decade of experience in software development and has also spent 5 years in US working for the mortgage and risk management industry.

One thought on “How Vehicle Insurance Premium Calculator is Beneficial?

  • November 22, 2017 at 11:45 AM
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    Thank you for providing such a nice article which is very helpful to everyone who owns a car. Most of the people would be unaware of this calculator but this article will help one to choose the right policy and not waste money by choosing the wrong one.Keep sharing your knowledge.

    Reply

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