Motor insurance policies are mandatory in India. Should you own a car or perhaps a bike, you have to purchase a valid motor insurance cover on the vehicle so that you can drive your vehicle or bike without facing legal consequences. Since the policy is mandatory, you need to purchase a motor insurance plan for your automobile.
There are a couple of kinds of policies for the vehicle. One is the 3rd party liability which covers any liability that you face if your vehicle damages third party property or harms someone physically. The other may be the comprehensive package policy which covers both 3rd party legal liability as well as the damages suffered from your vehicle itself. You can purchase any suitable policy as per your coverage requirements but do you know the premiums are calculated?
Factors affecting car insurance policy premiums
Premiums for a car insurance policy policy depends on lots of factors. These 4 elements are mentioned below:
- Type of policy that you simply buy
The premiums for motor insurance policies depend on the type of policy that you select. Third-party plans have lower premiums which rely on the cubic capacity of your vehicle’s engine. Comprehensive plans, however, have higher premiums since the scope of their coverage is wider.
- Age from the vehicle
The premium for newer vehicles is higher compared to older vehicles. It is because because the vehicle ages, its value decreases. Because the value is reduced, the premiums are low.
- Registration location
The place where your automobile is registered also offers an immediate effect on the car insurance policy premium. In metropolitan cities, the probability of accidents is higher and so premiums such places are higher.
- Make, model and variant
The make, model and variant of the vehicle have an effect on its premium. For the reason that the MMV determines the value of the vehicle. When the vehicle has a higher value the premiums would be higher and vice-versa.
- Term selected
Nowadays, vehicle insurance coverage is available too for extended tenures which provide coverage for approximately 5 years. If you choose a long term plan, you would have to pay the aggregate premium upfront. So, long term plans prove costlier than annual ones.
- Add-ons
Comprehensive vehicle insurance plans allow optional coverage benefits called add-ons. You can choose any add-on that you would like to increase the scope of the car insurance policy cover. However, each add-on comes with an additional premium attached to it. So, when you purchase add-ons, the premiums would increase.
- Fuel variant
Petrol vehicles are less costly than diesel ones. That is why premiums for petrol vehicles are lower than those for diesel vehicles.
- Modifications
If you do modifications in your vehicle such that the need for the vehicle increases, such modifications impact the premium rate. Because the value has grown, the premiums are also increased. However, should you modify your vehicle to match using a disabled rider, you'd be allowed a premium discount as well as your premiums would reduce.
- Premium discounts
Motor insurance policies have a selection of premium discounts that really help in lowering your premiums. If you're able to claim the available discounts, your premiums would cut back. Commonly available discounts in motor insurance plans are listed below –
- Discount for installing safety gadgets in the vehicle
- Discount to have the membership of the recognized automobile association
- Discount if you haven't made a claim within the last policy years
- Discount if you choose a voluntary deductible and choose to pay an element of the claim yourself
- Discount for buying long-term policies, etc.
- Status of the existing policy
If you're renewing a current motor insurance plan, its status would modify the renewal premium. When the existing policy has lapsed, the renewal premiums would be high. If, however, your overall policy is still in force, the renewal premium wouldn't be increased.
Now you realize the standards which determine the premium that you would be charged for your car insurance policy policy. How about calculating the premium before choosing or renewing the insurance policy?
Motor insurance calculator
There are online car insurance policy calculators which help you calculate the exact premium of your policy. These motor premium calculators calculate the premium based on the vehicle details that you simply enter. Using these calculators you will get an idea of the premium that you would have to pay for the car insurance policy policy.
Where to locate car insurance policy premium calculator?
Motor insurance calculators are online tools and they are found on the website of the insurance company. Moreover, you can also visit the websites of online insurance brokers, like Turtlemint, which allow you to calculate the premiums of multiple car insurance policy policies at the same time. By utilizing Turtlemint’s car insurance policy calculator you are able to calculate and also compare the car insurance policy premium of leading companies. You can then select a company which offers the very best coverage benefits at the lowest premium rates and purchase or renew your car insurance policy plan.
How do motor insurance calculators work?
Motor insurance calculators work on the details that you enter the calculator. You would have to provide the details of your automobile according to which the premiums could be calculated. These records range from the following:
- Registration number of the vehicle
- Make, model and variant
- Registration year
- Manufacturing year
- Place of registration
- Fuel type
- History of claims in an existing policy so the no claim bonus could be determined
- Whether the present policy has lapsed or not
- Type of policy that you want
- Add-ons selected if any
Once all the details are entered, the premium could be calculated and displayed.
How to use Turtlemint’s motor insurance calculator?
As mentioned earlier, Turtlemint’s car insurance policy calculator can help you compare different car insurance policy policies before buying. This lets you select the right plan at the smallest premium rates. To use Turtlemint’s car insurance policy calculator, listed here are the steps –
- Visit the homepage of Turtlemint at www.turtlemint.com and choose your automobile – Car or bike
- Enter the registration number of the vehicle and proceed
- Provide your vehicle’s make, model and variant
- Manufacturing year and fuel type would be also required
- Next, you should enter the information on your previous policy and state if the policy is within force or has expired
- The kind of the prior policy and also the claim history can also be to be recorded. If no claims happen to be made, choose the applicable no claim bonus. Also, state the prior insurer
- In the next phase, you are required to supply your contact information so that Turtlemint’s executive can call you and help you with buying the policy
- You would then have the ability to check and compare the available policies and select the one which is the best for your coverage needs
Top #4 Benefits of car insurance policy calculator
A car insurance policy premium calculator offers great help in calculating your motor insurance premiums even before you purchase the policy. It provides the following benefits –
- You can estimate the premium outgo beforehand and measure the affordability of your car insurance policy policy
- You can make a provision inside your annual budget when you are aware precisely the premium that you would have to pay for purchasing or renewing car insurance policy plans
- If you use the motor insurance calculator of online websites like Turtlemint, you'd be in a position to compare the premium rates of different insurers and obtain the best deal
- If the calculated premium is high you can make changes in the insurance policy and reach the least expensive rate
So, if you have to buy a new motor insurance policy or if your existing policy is up for renewal, use the motor insurance calculator to determine the premium, compare the available intentions of their coverage benefits vis-à-vis premium rates and then buy or renew the plan.
Frequently Asked Questions:
- What is the cost of using motor insurance calculator?
There is absolutely free involved in using car insurance policy calculators. You should use the calculator and calculate your premiums anytime without having to pay anything.
- Can I reduce my car insurance policy premiums?
Yes, your car insurance policy premiums can be reduced through the following ways –
- By using premium discounts wherever applicable
- By choosing only the required add-ons
- By renewing the policy on time
- By not making small claims and preserving the no claim bonus
- By comparing
- Does the premium remain the same every year under motor insurance plans?
No, the premium differs each year because the worth of the automobile decreases as it ages. Moreover, if there have been claims, the premiums would not be discounted. If you choose additional add-ons on renewing the policy, then also your premiums would increase. Thus, the premium is dynamic and changes each year.
