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The uses and benefits of an online car insurance calculator

A car insurance calculator is a very efficient online tool that allows you to calculate the cost of your car insurance premium. It is available on all the portals of the leading car insurance providers. You can also use the IIFL car insurance calculator to estimate the premium cost easily. 

What exactly is a car insurance calculator

A car insurance calculator is an online calculator that predicts the insurance premium you have to pay, depending on the type of car you have. The formula used by the calculator is:

The own-damage premium (after deducting the no claim bonus) + the third party liability premium + the cost of riders (if any)

The online car insurance premium calculator can only be used for the comprehensive or own damage policies. This is not applicable for third party plans since the premium of those plans is already fixed.

The uses of a car insurance premium calculator 

Here are some of the best uses of an online premium calculator for car insurance:

  • To know to premium rate

The biggest use of the online car insurance premium calculator is that you get to know the premium of the car insurance plan that you will be purchasing. This way, you are well aware of the costs beforehand.  

  • To plan finances

Once you know what your financial liabilities will be towards the car insurance policy, you can plan your finances accordingly. You can plan your budget and keep the car insurance premium aside.

  • To adjust the cover

After you use the calculator, you may find that the premium is too high and not affordable for you. At such a time, you can adjust the cover to make the premium more flexible for you. This is a handy advantage you get by using the car insurance premium calculator before making an actual policy purchase. 

Benefits of an online car insurance premium calculator

Now, let us look at the main benefits you get when you use this calculator: 

  • Easy to use

A huge benefit you get here is that the tool is very easy to use. You just need to enter some basic information and the results will be shown to you instantly. It, therefore, helps to save a lot of your time and effort.

  • Helps to compare

The online car insurance calculator also helps you to compare the various motor insurance plans. When you know the cost of the different policies, you can compare to see which is a better option for you.

  • Can check various options

Then, you can feed in different data to see different results. For example, if you wish to see the premium rate for a one year plan and also for a two-year plan, you can do so simultaneously and then decide which policy is better for you.

Factors that affect the premium of your car insurance plan

So how does the car insurance company fix the premium rate for the insurance plan? Here are the main factors that are taken into consideration:

  1. Type of cover

The types of cover, namely a third party car insurance plan or a comprehensive car insurance plan, are priced differently. The type of cover you choose will determine the premium rate you pay for the policy.

  1. Make and model of the car

The make and model of the vehicle you own will also impact the car insurance plan. A small hatchback will have a lower premium whereas the premium for a big SUV car will be a lot higher.

  1. Age of the car

New cars are more expensive to insure. But as the car ages and the IDV reduces, the car insurance premium also reduces.

  1. Riders

Riders are add-on covers that you can attach to your car insurance plan. If you attach many riders, the car insurance premium will increase and vice-versa.

  1. Location 

If you live in a tier 1 city in India such as Delhi or Bangalore, you will have to pay a higher premium as compared to a smaller town such as Mathura or Nashik.

  1. Discounts 

There are many discounts available on motor insurance. These include the no claim bonus, discounts for installing safety gadgets in your car, etc. These discounts are deducted from the premium and so the rates come down when the discounts are applied.

To wrap it up

The car insurance calculators are very beneficial online tools. Use them to know your car insurance costs accurately. If needed, make changes to your cover and you will be able to stick to your budget while finding the best and the most comprehensive car insurance plan.

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