Raman’s existing car insurance policy was expiring. He wanted to renew his policy within the due date and asked his friend about the online renewal process. His friend explained him the process involved with online renewals and also advised him to compare before renewing. Raman found this advice very sensible. He wanted to compare the premium rates and other features of car insurance policies offered by different insurers. However, he didn’t know how to know the premiums beforehand. Then his friend told him about car insurance calculators and Raman bought the best car insurance policy offering him the lowest premiums without skimping on the coverage. Do you know how? It was because of the car insurance calculator which Raman found out about from his friend. Do you know what it is?
What is a car insurance calculator?
A car insurance calculator is an online tool which calculates the premium of a car insurance policy using the details of the car.
Ways to use car insurance calculators
To use the car insurance calculator, you have to provide some information based on which premium calculation is done. The information required is as follows –
- Type of policy required
You would, first, have to specify the type of policy you are looking to buy. There are third party policies and comprehensive car insurance policies. The premium would be calculated based on the type of policy you select.
- The car details
The next important information which would be required would be the details of the car for which you are seeking a car insurance policy. You would have to specify the year of registration, the year of manufacture of the car, the make, model and variant, fuel type, whether the car is bought new or is second-hand, etc. These details influence the premium rate which is charged and are therefore very important in calculating the correct premiums.
- Existing policy details
The next information which is required is the details of any existing policy. If you are renewing your car insurance plan, you would have the policy number of the existing plan. This information is required by the calculator along with the renewal due date for knowing whether the policy is active or has lapsed. If the policy has lapsed, the premium charged for renewing the policy would be higher. The calculator would, therefore, calculate a higher premium for a lapsed policy.
- Claim history
The claim history in your existing policy, if you are renewing the policy, is also required. This claim history helps the car insurance calculator to understand whether your policy is eligible for a no claim bonus discount or not. If a no claim discount is applicable, the discounted premium would be calculated and shown by the calculator
- Your contact details
Then last information which calculators ask is your contact information. This information is optional and is required so that sales representatives might call you and guide you with buying a suitable car insurance policy. If you can buy the policy yourself, you might skip providing your contact details.
Tricks you should know
Though car insurance calculators are automated and provide the exact premium amount based on the details of your car, there are some tricks which, when used, help you get the best premium rates. These include the following –
- Choose the calculator of an online insurance broker or aggregator, like Coverfox, to get multiple premium quotes for the same car at one platform.
- Choose a proper Insured Declared Value of the vehicle. Though you might be tempted to choose lower IDV for lower premium costs, a higher IDV is advised so that you can maintain the value of your car over longer durations.
- Don’t forget to use the no claim discount to reduce the premium rate. You can claim a discount of 20% to 50% based on your claim history.
- Choose necessary add-ons to enhance the scope of coverage. Remember that add-on covers would increase the premium amount. So, choose only those which are necessary.
- Look for the available discounts and choose them to lower your premiums further.
Car insurance calculators make the process of buying car insurance easy. They let you know the premium rates and help you in buying the best policy. So, use these calculators to find the ideal cover for your car.