While car insurance is mandatory in India, the Motor Vehicles Act has mandated only a third-party liability insurance policy. This means that as a car owner, you need to have a car insurance policy that offers coverage for damage caused to a third-party person or property.
However, you can buy a comprehensive car insurance policy that includes protection for injuries to you and damages to your car if it gets into an accident or mishap. Usually, new car owners tend to buy the insurance policy recommended by the car dealer.
Most car dealerships are associated with certain car insurance companies and offer policies provided by them. However, these car insurance policies might not be the best option for you. Hence, it is prudent to look for a provider with a high car insurance claim ratio and features that suit your requirements.
There are many platforms that allow you to compare car insurance policies and use a car insurance calculator to find the premium for the policy you need. In this article, we will offer five simple steps to help you use a car insurance premium calculator effectively.
The websites of most insurance providers like Tata AIG have a free tool called the car insurance premium calculator that allows people to calculate the premium for the policy they need. Premiums can vary based on the coverage you need, the add-ons you choose, the no-claim bonus, and a range of other factors.
5 Steps to Calculate Your Car Insurance Premium
If you are wondering how to calculate the car insurance premium, here are five steps to calculate your car insurance premium using one such tool.
Choose the insurer
Choosing the right insurer is important to get the best insurance for your car. Look at three important aspects while comparing car insurance providers:
- The reputation of the insurer: This is an important aspect since car owners leave reviews about their experiences with insurance providers. Usually, insurers with a poor reputation tend to have some issues with processing and servicing requests.
- Claim Settlement Ratio: Every insurer displays the claim settlement ratio, which is the percentage of claims settled compared to the ones received. This can give you an idea about the efficiency of the insurer while handling claims.
- Service: Look for an insurer that offers round-the-clock customer service via different communication channels like phone, email, chat, WhatsApp, etc.
Once you have finalised the insurer, visit the website to start customising your policy and calculating the four-wheeler insurance price.
Choose the type of car
Are you buying a new car or a used one? Is it a sedan or a hatchback? Are you buying a new policy or renewing your existing one? The answers to these questions can have a direct impact on the quote for car insurance premiums. So enter the relevant details and select the right category before moving on to the next step.
Here are some details that car insurance companies require from you to help find the best insurance policy for your four-wheeler:
- Make and model of your car
- The registration number of the car
- If you are renewing your policy, then you will be asked to provide the existing policy number and dates
- If you are purchasing a used car, then you might be required to submit details of the previous owner, including the claims history
- Choose add-ons
Insurers offer add-on covers to allow you to customise the insurance policy based on your requirements. Each add-on cover can increase the premium amount based on the coverage it offers. Make sure that you choose the add-ons based on the needs of your anticipated usage of your car. Make sure that you are clear about what you need from the insurance policy and choose add-ons accordingly.
This is applicable only if you have an existing policy and have not filed a claim in previous policy years. Most insurers offer a discount on car insurance premiums if the policyholder does not file a claim during a policy term. This is a cumulative discount and can add up to nearly fifty per cent.
After entering these details, the vehicle insurance premium calculator will offer the premium that you will be required to pay for the policy. You can add/remove add-ons to get a policy as per your budget.
Car insurance premium calculators are handy tools allowing you to calculate the premium for the policy you need. Usually, they have a simple interface where you need to enter details about yourself, your vehicle, and your existing policy (if any). The steps mentioned above can help you find the exact premium required for the policy you need. If you have any doubts, you can talk to the service team of the insurance company, and they will be glad to assist you with the calculation.