A car insurance policy calculator is undoubtedly a helpful tool to calculate the insurance premium. The tool helps you plan the budget according to the needs and compare the premiums of different insurance providers.
Here is how a car insurance premium calculates the premium:
The premium is calculated based on the following formula
Own Damage Premium – (Depreciation + NCB) + Liability Premium
The factors that affect car insurance premiums are:
- Insured Declared value
- The cubic capacity of the car
- Year of manufacturing
- Geographical location
- No Claim Bonus
- Depreciation of the vehicle every year
In the case of used a car, you would need:
- Claim history of the previous year
- Current details of the car insurance policy
- Details of previous owners
How to Use a Calculator to Calculate Car Insurance?
The car insurance policy calculator is available online at the websites of the different insurance providers. The calculator calculates the premium based on the information provided by you about the car.
Here is the approach of calculating the car insurance premium-
Premium Calculation for Used Cars- The factors for premium calculation of the used vehicles are car type, fuel type, details of existing car insurance policy, registration number of the car, and the number of claims done in the past. Once these details are entered into the car insurance calculator, it gives the estimated premium that you have to pay for your car.
Premium Calculation for New Cars – To calculate the premium of new cars, you will have to enter the following details in the car insurance policy calculator – Details of the manufacturer, date of manufacture, car model, registration details the car, state of registration and many more. The details of the car owner are also important in the case of new vehicles. After these details are entered into the calculator, the car insurance policy calculator will estimate the car’s premium.
What Are the Benefits of Using a Car Insurance Calculator?
With an array of car insurance premiums available, it is quite difficult to find the car’s best car insurance policy. The car insurance calculator helps to calculate car insurance premiums most efficiently and lets an individual know the approximate amount that he would have to pay toward the car insurance policy.
- It helps to decide your budget according to the needs
- The calculator saves a lot of time if calculated manually
- The car insurance policy calculator is unbiased reliable and is hassle-free
- The insurance calculator also eliminates the need to talk to the agents
Why is it important to use a car insurance calculator?
During these times, when visiting the agent and talking about the different policies is not feasible, the car insurance policy calculator comes as a respite. It allows you to understand the different plans provided by different companies in a well-informed manner. The overall process of selecting a car insurance policy becomes easy and convenient. If you already have your documents, you can instantly strike the best deal for your car.
Thus, a car insurance policy calculator gives you the macro view of all the plans. Especially during these times, using a car insurance calculator for deciding your car insurance policy is the best way to get the maximum benefit at minimum risks.
