Car Insurance Calculator & How to File Car Insurance Claim

Updated: 05-09-2022 09:23:24 AM

The use of a car insurance calculator makes it easy for a customer to compare car insurance policies and compute the premium rates. It helps people choose the policy on the basis of their specific requirements. With just few clicks, one can use the the tool and compare various policies. It works well for both used cars and new cars and can help in saving up to 50% or more on premiums.

How to Use Car Insurance Premium Calculator

This tool that can be used online uses the information provided to calculate the premium. The required information related to coverage and premium can be accessed in a few clicks.  The major information required for the calculator is:

Start date of the policy	Details of the car
Registration details and date	Coverage Details

If you compare two policies, you can see the inclusions and exclusions, but if you use insurance calculator, you can get a premium-based comparison. The premium rates depend on the amount of coverage the policy provides – higher the coverage, higher the premium. All the insurance companies have their own method of calculating the premium. The two major methods of calculating the premium of the car using the calculator are on the basis of the new and old car.

Calculating Car Insurance Premium for New Car

Following are the features of a premium calculator for new cars:

• This calculator works by the details filled in by an individual
• The major details required are state of car registration, manufacturing year, model of the car, the name of the vehicle manufacturer and the details of the individual buying the insurance
• After filling all the details, you can access the comparison of all the policies that match the description
• The calculator will also allow you to compare different policies and insurers according to your requirements and help you choose the right policy

Calculating Car Insurance Premium for Used Car

The features of an online calculator for computing car insurance premium for a used car are:

• It allows an individual to choose the right insurance plan for a used car
• The details required for computing the insurance premium for a used car are: details of ownership, details of prior insurance claims (if any), details of current insurance policy, registration number, fuel type, type of car
• The calculator will suggest and compare the best possible plans and premium rates

Advantages of using Car Insurance Calculator

There are many advantages of using an online calculator for computing car insurance premium. Some of the benefits are:

• Influence of insurance brokers and agents is minimized
• It sheds light on how the change in coverage changes the premium
• It helps find the most pocket-friendly policy as per premium rates
• Improves the convenience of getting your car insured if you have used an online calculator
• Provides the insured with the premium that is searched for but also other possible variations providing similar coverage.

Renewal of Car Insurance

Every car insurance policy has a date of expiry, and hence it has to be renewed on expiry. It is quite simple to renew the policy, as all the formalities can be done online. For most of the insurance buyers, the kind of policy depends on the premium rates. However, it is important to consider other factors like coverage and expiry. If you are getting a plan with more coverage at a slightly higher premium rate, you should choose the one providing higher coverage.

Factors Affecting Value of Car Insurance Premium

The rates of the premium are affected by many factors like the value and age of the car. The major aspects of the same are elaborated below:

• Car: The most important factor that affects the premium of a car insurance policy is the kind of the car being bought. The premium amount is directly affected by the price of the car. It is higher for a luxury car of Lamborghini compared to an economy car like Alto. The premiums are also affected by the type of car; they are lower for family cars and higher for SUVs.
• No Claim Bonus (NCB): NCB is a bonus discount you get if you do not make an insurance claim for one year. It is a transferrable discount that can vary from 10% to 50%, depending on your policy.
• Type of Fuel: A car that runs on Compressed Natural Gas (CNG) gets insured at a higher premium compared to a petrol/diesel car.
• Profession Discount: An additional discount is provided to certain professionals. They can be doctors, people from defense forces and government officials who are entitled to additional discounts on their premium.
• Anti-theft Devices: A certain percentage of relief is expected in premium if the car is equipped with an anti-theft device approved by ARAI.
• Insurance Deductible: It is the amount that is paid by the insured before the insurance company pays the claim. It is a part of the insurance contract; a portion of the loss is to be paid by the insured. The insurance deductible is indirectly proportionate to the premium amount. Higher the deductible, lower the premium.
• Age of Insured: The age of the insured individual is also a deciding factor for the calculation of the premium. The individuals under 25 years of age are liable to pay a higher premium compared to the ones aged over This is so as the insurers believe that younger individuals have higher chance of meeting with accidents.
• Location: If you are purchasing an insurance for a car driven in semi-urban areas, the insurance premium will be lower than that for cars driven in urban areas. The reason being a high density of traffic in urban areas and hence higher chance of accidents.
• Age of the Car: The age of the car also need to be considered for the calculation of the Older cars can be insured for a lesser amount compared to new cars because older cars have less insured declared value (IDV) than new cars.

How to File Insurance for Your Car

The use of an online calculator can help you get the right policy, but what’s more important is to get the right insurance claim when required. Following simple rules can help you stay away from hassles and also get a better claim. These considerations should be kept in mind, otherwise there are chances that your claim will get rejected.

• It is necessary to file an FIR before you start the process of claiming your car insurance. It is the evidence on which your insurance claim is based. It is compulsory to file a complaint if you want to claim insurance.
• Once you have informed the police, it is time to inform your insurer. A car insurance policy consists of a period under which you should inform your insurer, which can vary from 24 to 48 hours. Not informing your insurance provider on time can lead to rejection of your claim.
• Next, you can review your policy once to figure out how much coverage you can expect. You can also connect with the customer support of your insurer to know the details of the same.
• The insurer will require more evidence than an FIR to consider your claim. You can take pictures of your car to justify the damage and make your claim stronger. The pictures can also be taken of your injuries and the third-party injuries to further strengthen your claim.
• Do take note of any possible witnesses of the accident and take a picture of a third-party’s insurance policy to ensure third-party claim.
• You should be keeping a track of all insurance company representatives like their position and name along with their contact number.
• It is important to document all bills of expenses incurred concerning the accident to claim the whole amount.
• Consulting your lawyer can also largely support you in putting forward a stronger claim.

After choosing the right plan, it is important to make the right claim when needed, to make the most out of your premium. You should use the correct process to get righteous claim and avoid any hassles. Making any mistakes during and after the accident can largely result in the rejection of your insurance claim. An awareness of all the terms and conditions of your policy will help in making a proper claim.