The ownership of a car is a monumental step in everyone’s life. The automobile purchase fixes your daily commute woes and dissolves your dependency on public transportation. However, the process of buying a car does not end after the purchase. An essential step while buying a car is to get the vehicle insured.
What is Car Insurance?
Car insurance or ‘motor insurance’ is the insurance policy that protects your car and you from any damage or risk, leading to financial losses. While it is a legal compulsion for every car owner to get a four-wheeler insurance policy for their car, it is an easy and straightforward way to protect you from facing high damage repair costs. Apart from the damage repair, the insurance policy will also take care of any third-party liabilities.
In a car insurance policy, you will have to pay a premium amount to the insurer for the coverage you get. You will get the option of selecting the premium amount payment cycle. But how do you select the best car insurance policy for you? You can choose an insurance policy with the help of a car insurance calculator.
What is a Car Insurance Premium Calculator?
A car insurance premium calculator is an online tool to assist you in calculating the policy premiums when you purchase car insurance online. With the help of the calculator, you can get the premium quotes for your insurance policy. Once you have provided the calculator’s relevant details, the calculator will generate the premium quotes for you. The calculator also allows you to understand how adding different riders to your plan can affect the premium amount you pay towards the plan.
When renewing your insurance policy, you will have to provide the details about yourself, your car and your policy. Once you have provided all the relevant car insurance details in the calculator, it provides you with the premium amount you will have to pay on the renewed plan.
How Does a Car Insurance Calculator help You?
The calculator allows you to adjust your IDV (Insured Declared Value) to the one suitable for your car’s make, age and model. Getting the correct IDV ensures that if your vehicle gets wholly damaged or stolen, you will be compensated with your car’s accurate market value and not face losses.
With the calculator, you can understand the premium amount you will have to pay through different insurance plans. It can be quite helpful for you to compare the various plans available for you and buy the best one that suits you.
An add-on is additional coverage you can get from the policy. This feature provides you with protection for specific situations and improves the existing coverage you are getting from your policy. However, adding a rider to your plan increases the amount you pay for your insurance plan. With the car insurance calculator, you can see precisely how different add-ons can affect the premiums you pay towards the plan. Once you understand which riders you want to add, you can select only the necessary ones and nothing more.
Generally, an insurance agent would be the one to tell you about the different plans available. An agent may try to provide you with biased opinions, and you would have to pay for their services. With the insurance calculator’s help, you would not require an intermediary. You can decide on the plan for free and directly buy it yourself.
With high accuracy and accurate automated metrics for premium and other calculations, the policy buyer will not have to conduct any manual calculations. This means a rare probability for errors which helps one make quicker decisions.
Why use a Car Insurance Calculator?
A car insurance premium calculator will help you compare different plans available in the market and the plans’ premiums. Once you have the information about the available plans, you can make a practical decision.
The insurance calculator will help you understand how different premiums are determined. After having a clear picture of the various plans, you can decide the plan you wish to purchase.
Helps reduce premium:
When you use the calculator, you can understand how different factors from the plan increase or decrease the car insurance premium. Once you have seen the various elements and their effect on the premium amount, you can easily customize the elements to get the lowest premium possible.
Thus, a car insurance calculator has multiple uses, be it calculating the insurance premium or adjusting the IDV of your four-wheeler. Apart from enabling you to quickly make the necessary calculations, it eliminates your dependency on an insurance agent, considerably lowers the probability of calculation errors and helps make the purchase or the renewal of car insurance online an autonomous but well-informed decision.