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How to Use a Car Insurance Premium Calculator

Neha Gadoo Neha Gadoo 18 October 2016

Finding the right insurance policy is not easy. Well, if you’re a beginner, take baby steps and start with calculating the insurance premium first. Below I will explain to you how to go about it. It’s Easy-Peasy!

Car Insurance Premium Calculator

Car insurance premium calculator is an online feature that helps you to calculate the premium amount for your car on the basis of the information provided by you. It provides you various premium rates to choose the one that suits you the best.

To calculate the accurate car insurance premium, you need to specify your car details like, year of registration, car model, variant and other coverage details. Within a few clicks you get what you are looking for. To win a good deal, compare various policies and their respective premiums. Most importantly, the more specified your insurance coverage, the higher your premium will be.

Benefits of Using Car Insurance Calculator

  • Using a car insurance premium calculator before buying a policy makes the process easier and hassle-free for you
  • Choose and buy the best insurance plan by comparing various premium rates
  • You’ll notice that the premium rates change by changing the variables
  • You no longer need to contact an agent, you can do all by yourself, and you basically pay for what you choose and not under any influence.
If You have a Used CarIf Your car is New
In order to calculate premium for used cars you need to give details like,
- Car Type
- Fuel Type
- Registration Number
- Existing car insurance policy details,
- Change in car ownership details, claim reports of previous year, if any.

Premium calculator for used car allows buyers to get the best deal as per the requirements.
For calculating the premium for your new car, you would need to fill details about your vehicle including
- Car Manufacturer,
- Vehicle Model,
- Year Of Manufacture,
- Place of Registration
- Year Of Registration
- Registration No.
- Variant
- Fuel Type
- and your own details.

Premium calculator for new car offers you the best deal as you compare all facilities offered by different insurance providers.

Factors that Determine Your Car Insurance Premium

  • Car Make, Model and Variant – High end cars like, Mercedes or Audi have higher premium than normal family vehicles
  • Place of Registration - Since the chance of car damage is higher in metropolitan cities or urban areas, your insurance premium is higher than sub-urban areas.
  • Fuel Type – If your car is fitted with CNG, you end paying higher premium.
  • Year of Manufacture – If your car is old, the Insured Declared Value (IDV) will be less, and hence the premium.
  • No Claim Bonus – No Claim Bonus is a discount offered to you for every claim free year. It is a cumulative discount and varies from 10% to 50%. NCB can be transferred to another car or policy.
  • Voluntary Deductible - It is the minimum amount that you are ready to bear at the time of claim. The higher deductible you claim to pay, the lower will be your premium.

Many policy holders look for lower premium rates as the sole criteria to choose a car insurance policy. It is advisable to look for other features and benefits of a plan before buying a policy. Go for a plan that gives you a better coverage even if the premium is slightly high.

Neha Gadoo
Written by Neha Gadoo
Daring and Bold, Neha loves philosophy, trekking and walking bare feet in the rain. Loves talking and can stare out of a car window for hours continuously.