by Pramod Singh
Published Tue, Jan 10th 2017, 15:16 | Advertising
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 comparing 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.
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.
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?
Variants that play an important role in deciding car insurance premium rate are as below:
Fuel type: Premium of a CNG is higher than a plain petrol/diesel car.
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.
Anti-theft Discount: You would enjoy additional 2.5% if your car has been fitted with an ARAI approved anti-theft device.
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.
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.
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.
Age and gender: Car 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 Car Insurance by comparing the quotes online. It is always better to check for various options before making the final payment.
http://www.sooperarticles.com/finance-articles/insurance-articles/how-does-car-insurance-premium-calculators-work-1546895.html