The research for buying a car starts right before stepping inside the showroom. It is a sense of pride as one has put in a lot of money and effort to buy one. You cannot drive a vehicle without getting it insured as it is against the Indian law. So just to add to it, ignoring car insurance can put you in a legal offense. To keep yourself and the car safe on the Indian roads you need to get good car insurance from the best insurance company that offers policy based on consumer needs. Search for the information on the internet. A car insurance calculator comes in handy at such times.
A car insurance premium calculator helps a person to calculate and compare the policies and quotations from the insurers available in the market. For this, some basic information about the car and the policy bearer is required to be filled. Car details like manufacture, registration number, fuel type, if it's a used or new car if any previous claims have been made, needs to be filled in correctly. Once the details are filled in the car insurance calculator, it will calculate the premium amount one ideally needs to pay for the insurance policy.
There are certain factors that affect the car insurance premium.
1. No Claim Bonus (NCB): Never claim for small dents or scratches. Pay from your pocket as they don't cost much. Save the claim. If you haven't claimed for the previous years, it makes a substantial difference in calculating your no claim bonus.
2. Zone: The area in which you live also makes a difference in the premium amount. Say if you stay in an area which has a heavily trafficked and congested road condition, more mishaps are likely to take place. This makes a direct impact on the premium by rising it a bit.
3. Manufacture and type: A premium brand fetches higher insurance than a regular brand. In the case of diesel cars the premium is usually 20% higher than for a petrol variant of the same car.
4. IDV (Insured Declared Value): This is one of the most crucial factors in deciding the premium of the car. Lower the IDV, lower is the premium and vice-versa. Insured declared value is the current market value of the vehicle. Say, the market value of the vehicle is Rs, 10 Lakhs, the maximum amount the company will compensate will be Rs. 10 Lakhs in any kind of loss or accident.
5. Accessories: Accessories enhance the beauty of your vehicle. Example LCD, stereo system, alloy wheels. Many of them come with a heavy price. Therefore, they need to get insured before any kind of misfortune. This comes under the add-on covers offered by the insurance companies. This add-on insurance covers the damages in case of mishaps. It might increase the premium amount to some extent.
6. Deductibles: This is the amount the insured has to pay towards the repairs of the car before the insurance company steps in. This is to avoid fake insurance claims. This particular amount is referred to as voluntary deductible and it directly impacts the premium.
The car insurance premium calculator is a tool that helps you take a better decision in terms of car insurance. You can make a more calculated choice by opting the factors that influence the premium. You can drop some of the unwanted features and save bucks on premiums.
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