How to Use a Car Insurance Premium Calculator and Its Benefits

November 15, 2017 | Author: | Posted in Automotive, Business

Car Insurance Premium Calculator

Buying car insurance policy online has become the latest trend. It is convenient both for the seller and the customer. Everything is available on screen and as there are no intermediaries involved, it is cheaper too. When we hear the word car insurance policy online, we often hear a term correlated with it, which is the premium calculatorCar insurance premium calculator is a tool that helps you determine the premium amount that you have to pay to buy a certain insurance policy.

If we talk about traditional methods, you can take assistance from the agent, however, in case of online insurance, you need to login to your account and calculate premium using the premium calculator. You can use the car insurance premium calculator once you are through with what you want and can also compare various policies and their premium.

There are certain parameters which a calculator takes into account when it calculates the premium amount, let us understand each in brief:

Car details

While using an insurance premium calculator, you have to provide information about your car like the model number, manufacturer, cost etc. This is done so that the calculator can understand the slab in which your vehicle falls and calculate the premium accordingly. The slabs are usually fixed by IRDA and other insurance regulatory authorities.

Registration Date

 The second important parameter on which an insurance premium calculator calculates your premium amount is the date of registration of your vehicle. It plays an important role because it lets the calculator know the year and month since a lot of calculation depends upon these two. Make sure you feed the right information.

Policy Start Date

In case you are renewing your old insurance policy, information regarding previous policy start date is very important. It is essential not only for the records of the calculator but also for ascertaining the amount of insurance premium.

Type of Insurance Cover

Vehicle insurance premium calculator also takes into account whether you are choosing a third party or a comprehensive insurance cover. When you choose a third party cover, the premium amount will be less. But it is always advised to go for a comprehensive cover as it covers damages from both the ends, the hit and the hitter.

Geographical Location

The location where your vehicle is registered is crucial in determining your premium, as different geographical locations have different norms and criteria.

For instance, a vehicle booked in J&K will have different premium than a vehicle booked in Rajasthan. Similarly, vehicles booked in metro cities will fetch a higher premium than those booked in Tier I or II cities.

Fuel Type

Whether you are using a vehicle that uses petrol or Diesel, is also an important factor while calculating the premium amount. Diesel and CNG/LPG based vehicles are always charged more premium than a petrol-based vehicle.

No Claim Bonus (NCB)

This is a blessing, if in any particular year, you have not claimed anything, you will get its bonus in the following year. It will give you discounted premium rates and your calculator will consider this piece of information as an important one.

It is only after considering all the above parameters that a car insurance premium calculator will give you an exact amount of premium that you need to pay. Car insurance premium calculator offers a range of benefits for the seller as well as the customers. It not only enables you to calculate premium but also helps you understand various parameters that impact the price of an insurance policy.

Benefits of Car Insurance Premium Calculator

Using a car insurance premium calculator has its benefits, let us dig deeper into them.

Quick and convenient

While you use a premium calculator, you have to punch in the basic details such as registration number of vehicle, model & variant, registration year, manufacturer etc. Once you fill the details, the calculator will instantly display the insurance policies that meet your requirement along with the premium amount.


 It’s a cost-effective tool because you do not pay any money to ascertain the premium amount that you have to pay. You can compare plans online and decide the one that exactly meets your requirement. This saves time and is a more efficient and reliable tool. There are no chances of any flaw and you can take an instant decision.

Based on Parameters

Although the tool looks simple to use and easy to understand, in reality, it is created by huge research and planning. It calculates premium based on data, and not simply out of something which is irrelevant. The above mentioned are the parameters which it takes into consideration.

So, make sure you use the valuable tool of car insurance calculator that will help you buy the best car insurance that suits your specifications.

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