How Does Car Insurance Premium Calculators Work

Things You Need to Know Before Buying Car,House, Health & Life Insurance online.

Insurance Buying Tips #1: Shop smart
When looking for insurance, your No. 1 priority should be to find adequate coverage. Price is important, but you’ll want to determine what kind of coverage you need first. Then you can fit that coverage into your budget and determine which carrier can provide you with the most comprehensive policy for your situation. You may be tempted to choose insurance with the lowest price tag, but if you don’t have enough coverage (or the right kind of coverage), you will see less financial benefit when it comes time to file a claim.
Insurance Buying Tips #2: Look for discounts
Once you evaluate your coverage needs, factor in your budget and find ways to save. Ask your insurance agent if there are any discounts on your coverage. Often, carriers offer discounts for things like paying your policy in full, staying auto accident-free or, if you’re in school, getting good grades. You also can save money by “bundling” multiple policies, such as purchasing a home and auto policy from the same carrier.
Insurance Buying Tips #3: Fill in the gaps
An average policy will cover the basics, but you may need to add extra coverage to meet your unique needs. For instance, you may have items like electronics or a nice piece of jewelry that would be financially difficult to replace, even with the assistance of your average renters or homeowners policy. You may want to add additional coverage for these items.

When you buy insurance for your beloved car, it becomes imperative to understand how the premium is calculated. Because, when you discuss this with your friend or a colleague, you realize that your friend has paid a lower premium compared to yours. So, it becomes prudent to understand the calculation paid for your status symbol. A car insurance calculator allows a person to calculate the premium as well as allows to compare the quotes of different insurance companies.

What are the benefits of a Car Insurance Premium Calculator?

  • Your process of buying an insurance plan for your car becomes easier and hassle-free.
  • You can compare the quotes of different insurance companies and choose the right plan as per your requirement.
  • You can check yourself how changing variables of coverage, changes your premium.
  • You don't have to depend upon insurance agents. You can buy the policy yourself on trusted online portals like Coverfox.com

How does Car Insurance Premium Calculator work?

This is a valuable tool that enables the customers to calculate the premium on basis of information provided online. To calculate the premium, it is necessary to input the correct information including the date of registration, policy start and end date, car details and other extra coverage details.

Every insurance company uses the below method to calculate the car insurance premium:

  • For Used Cars: You need to give details like fuel type, car type, change in ownership details if any, registration number, details of the existing policy details and claim reports of previous year. This gives a good chance for the buyers to get the best deal using the car insurance premium calculator.
  • For New Cars: You need to provide details including the manufacturer's name, state and year of registration, vehicle model and variant, etc. along with personal details. This car insurance premium calculator is a one stop solution for the concerns of the customers.

What are the factors that determine the car insurance premium calculation?

Insurance Buying Tips #4: Purchase life insurance—you aren’t too young
Life insurance is essential, no matter how young or old you are. And for millennials, buying now may be a smart move because it’s cheaper to buy a life insurance policy when you’re young and healthy. This kind of insurance can help your family cover unexpected costs in your absence, including student loan debt or a mortgage, in addition to end-of-life costs. And if you have kids, a life insurance policy can also support their education or childcare expenses. Additionally, every millennial should consider long-term disability coverage, which helps you stay afloat financially if an accident happens and you become disabled and unable to work.
Insurance Buying Tips #5: Talk to an independent agent
An independent insurance agent is an essential resource when purchasing insurance—especially if this is your first time. An independent agent works with multiple different carriers, which is different from captive agents who can only sell insurance from the carrier they work for. Working with an independent agent can help make sure that you are getting the best coverage, for the best price. You’ll also benefit from independent agents’ insurance knowledge; they know how to talk you through your options and actually explain what each policy includes. An independent agent will make sure all of your assets are covered, help you find discounts or other ways to save, and be a valuable resource as your life changes and your insurance needs change, too.
Insurance Buying Tips #6: Only buy insurance to maintain your existing standard of living
You don’t need insurance for events that won’t severely strain your finances. Start with your basic needs (home, auto, business), then work your way to include other needs (cyber, liability). You can always obtain coverage later for something if you change your mind. You can minimize your risk and maximize your savings by buying insurance that won’t cause you to break the bank.

Variants that play an important role in deciding car insurance premium rate are as below:

  1. Fuel type: Premium of a CNG is higher than a plain petrol/diesel car.
  2. Car Make, Model &Variant: High end cars like BMW or a Mercedes will have a higher premium rate than a Maruti or a Tata Car. Also, the premium of a SUV would be higher than a family car.
  3. Anti-theft Discount: You would enjoy additional 2.5% if your car has been fitted with an ARAI approved anti-theft device.
  4. Manufacturing year: The Insured Declared Value of an old car would be lower as compared to a new car and so would the premium be.
  5. Geographical location: If you stay in urban areas, the traffic density would be higher and so would the rate of accidents be. Likewise, the car insurance premium would be higher in the urban areas than the rural areas.
  6. Profession: Your profession matters the most. If you are a doctor, defense personnel or a government employee, you would be entitled for an additional discount. It depends upon one insurance company to another.
  7. Age and gender: Insurance companies may or may not consider your age and gender for deciding your car insurance premium. For example, a person ageing between 18 to 25 years are more likely to be involved into accidents (which might not be the case) and hence the insurance premium would be higher compared to a person between 30 to 45 years. Again, it all depends upon one insurance company to another.

These insurance premiums are widely decided by the car insurance companies in line with the IRDAI guidelines, you can make a wise decision of opting for a car insurance by comparing the quotes online. It is always better to check for various options before making the final payment.

Insurance Buying Tips #7: Ask your insurance provider what the policy doesn’t cover
Every insurance policy has perils that are not covered by your policy. These perils are referred to as “exclusions”, and every policy has them. Ask your insurance provider to explain the exclusions in your policy to avoid discovering what they are once you incur damages or a loss.
Insurance Buying Tips #8: Consider bundling several policies with one insurance carrier
here may be value in bundling several policies with one insurance carrier. If you’re looking to insure multiple vehicles or obtain multiple types of business coverage (e.g., liability, property, cyber), then you may want to consider obtaining coverages under one insurance provider who carries multiple products, and who may be able to offer you multi-policy discounts or loyalty programs.
Insurance Buying Tips #9: Review your insurance needs on a yearly basis
As your needs evolve, so will your insurance policy. Maybe you’ve acquired a new vehicle since obtaining auto insurance for your primary vehicle, or started operating your business out of your home, or experienced a cyber-attack during the year… Whatever the change(s), you’ll want to make sure you’re covered for any new risk exposures. Talk to your insurance provider to stay on top of your insurance needs.
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