A motor insurance premium calculator is an online tool that enables customers to calculate the premium amount payable on a motor insurance. It also helps the customers to compare the motor insurance policy.
In a nutshell, a motor insurance premium calculator is a very effective method in which you can get the best motor insurance policy for your vehicle. Comparing the premium amount of different policies is just a click away.
Once you have knowledge of the estimated premium, it is easy for you to evaluate your needs and choose the right policy. The benefits of using a motor insurance premium calculator are:
- An insurance premium calculator makes the insurance process hassle-free and transparent
- You can compare the premium rates of the competitors and choose the best insurance policy
- You can see how each variable impacts the motor insurance premium and how change in each variable changes the insurance premium
- You can escape fraudulent agents who trick you into paying higher premium. You can calculate and see the premium for yourself.
Table of Contents
Factors that affect the motor insurance premium
The below-mentioned factors impact the motor insurance premium.
It is a common notion that drivers and riders under the age of 25 are more prone to accidents as most of them do not have the discipline to follow road safety rules. Therefore, policyholders in this age-bracket are usually offered an insurance policy at higher premiums.
2. Model and Brand
The owners of the high-end cars such as Mercedes, Bentley and Audi need to pay higher premium for motor insurance, than that of the budget cars such as Maruti Suzuki or Santro. At the same time, you have to pay more premium if you own an SUV as compared to a regular car.
3. Place of Residence
It might appear strange but premium amount also varies across the place of residence. Urban areas are prone to traffic and accidents. Hence, insurers charge a higher premium for urban locations as compared to semi-urban locations.
4. Type of Fuel
The fuel you use in your car also determines the premium amount. A vehicle running on diesel demands higher premium for insurance as compared to a CNG or petrol car.
If the owner of the car is a defence personnel, government employee or a doctors he is entitled to get discount on the premium amount.
In insurance parlance, deductible is the amount of expenses that the insured is going to bear out of his pocket. If the amount of deductible is higher, the premium is less and vice-versa.
How to use the motor insurance premium calculator?
The two wheeler and car insurance premium calculator is a tool that is available online. You can see great variations in the premium rates as per the inputs mentioned by you.
The details that you mention for the calculation of the premium amount include vehicle model details, date of registration, date of manufacturing, city of residence, extra add-ons desired and the estimated start date of policy.
In case the vehicle is a used one, you would be required to give additional details such as fuel type, registration number, existing details about car insurance policy and details pertaining to change in ownership.
Once you mention all these details and click on calculate, the premium calculator automatically gives you the estimated premium within a split second.
You can use the motor insurance premium calculator for comparing various policies, but premium is not the only determining factor. These tools can be easily found when you buy the motor insurance online.
You also need to look at other features and benefits of the motor insurance policy. The amount of premium must commensurate with the coverage provided for the policy.