Technology has made our lives simpler. We look forward to simple solutions in all walks of life. This thought stands true in the online world as well. Be it booking a flight or reading articles, we want the information to be presented to us quickly and in a simple manner. Taking a leaf out of this book, insurance companies have designed an online car insurance premium calculator. Read ahead to know all about this tool and how it benefits you.

Meaning of Car Insurance Premium Calculator

Car insurance premium calculator is an easy-to-use online tool that helps you while purchasing car insurance. Just as you key-in numbers in a calculator and use it for complex calculations, the car insurance premium calculator helps you to arrive at an approximate amount that you will have to pay to purchase car insurance.

Purpose of Car Insurance Premium Calculator

Most of the insurers have a car insurance premium calculator on their website. It is also known as motor insurance calculator. This tool is aimed at helping out car insurance seekers to know approximately how much they have to pay if they want to purchase the desired policy. You can visit multiple insurer’s websites and use the tool available over there to know their charges and compare car insurance prices.

How Does the Calculator Work?

The motor insurance calculator functions as per the information you provide. The layout of the calculator is similar to that of an online form. You have to enter information pertaining to you and your car. The calculator will take in all the information, process it, and present to you a car insurance quote.


Benefits of Car Insurance Premium Calculator

  • DIY

With an online car insurance premium calculator, you do not have to rely on agents or customer care executives to arrive at a quote. You can do it yourself (DIY) and that too in simple steps.

  • Assess Requirements

As the calculator is like a form, you get all the necessary information in one go. It lets you assess your requirements, analyze, and make the decision. You can check the impact of slight modification in an instant. For example, if you reduce the Insured Declared Value, the premium will reduce.

  • Budgeting

The calculator is beneficial for budgeting. If you have set a limit on how much you can spend on car insurance, the calculator will help you to stay within that limit and still choose a productive car insurance policy.

  • Compare

Different insurance provider’s websites will most likely give you different car insurance prices. You can compare the premium charged and the coverage offered, and make an informed decision. This saves time, effort, and money.


Factors That Determine Car Insurance Premium

 If in the first instance, you feel that the generated quote is on the higher side, you can modify some information and then check the quote again. Generally, you have to feed in the following information in the insurance calculator. Modifying this information will change the quote.

  • Your car’s make, model and variant
  • Your pincode
  • The car’s registration year
  • Car’s registration number
  • Claim history
  • No Claim Bonus
  • Any discounts (if applicable)
  • Voluntary deductibles (if applicable)
  • Add-ons

 Focus on Details

 Insurance companies provide all the information upfront regarding their policies. There is a lot of information on the product page as well as on the blog pages. However, when it comes to claim settlement, your policy document is of utmost importance. It clearly mentions the inclusions and exclusions of the insurance policy. Sometimes, people forget to focus on minute details and end up disappointed when their claim is not approved. Thus, read the policy document, and get your doubts (if any) clarified from the insurance company’s executives before purchasing the policy.

By Chakraborty

Dr Chakrabarty is the Chief Innovation Officer of IntuiComp TeraScience. Earlier she was Assistant Professor of Delhi University, a QS ranked university in India. Before that she has held research positions in IIT Mumbai, IIT Chennai and IISc Bangalore. She holds 2 patents and over 20 research publications in her name which are highly cited. Her area of research is in smart technologies, integrated devices and communications. She also has a penchant for blogging and is an editor of Business Fundas.