There are various methods of car insurance calculation in India. Different insurers apply different methods for calculating your car insurance premium and this is dependent on a number of factors.
About car insurance calculation
Your car insurance premium is calculated by taking into consideration the following factors:
- The type of automobile
- Its Insured Declared Value
- Period of coverage
- City of registration
- Claims history
- Gender of the driver
- Age of the driver
- Marital status
- Distance covered
Insured Declared Value (IDV)
The insured declared value of your car is dependent on the age, make, and model of your car. The insured declared value is an important determinant of your car insurance premium. It is the amount that you will receive if your car is stolen or gets damaged in a road mishap to such an extent where it can’t be renovated.
Type of car
The type of car is a major determinant of your car insurance premium. If it is a luxury or expensive vehicle, then the premium would be high. If you own a cheap or not-so-expensive car, then you need not pay a high premium amount.
Claims history
Your claims history is an important factor in determining your vehicle insurance premium. If you have a blemished claims history, then your rate of premium will be substantially high at the time of renewing your policy. In contrast, if you are a sensible driver and have no history of claims, then you will qualify for attractive discounts on your premium. However, you should remember that if you register for a claim even once, your discount at the time of renewal would be cut down instantly.
City of registration
The city where your car is registered is a key determinant in your car insurance calculation. If the car is registered in a metropolitan city, which is quite prone to accidents, then your premium rate will naturally be high. On the other hand, if your car is registered in a suburban city where traffic congestion or rate of accidents is negligible, then your car insurance premium will be considerably low.
Period of coverage
If you have an extensive period of coverage for your vehicle insurance policy, then your premium is supposed to be low. On the contrary, if you have a short coverage period, then your premium would usually be high.
Gender of the driver
It has been noticed that female drivers attract lower premium rates than their male counterparts. Age of the driver The age of the driver is an important element in determining the premium. Teenage drivers usually attract higher premium rates than their adult counterparts as they have less driving experience.
Marital status
A married person usually qualifies for discounted premium rates since it is assumed that he has better financial stability than an unmarried individual.
Distance
If you don’t bring out your car too often, then you will be asked to pay a lower rate of premium. In this way, low mileage helps you get discounts on your rates. You should keep in mind that your premium is worked out on the basis of the cubic capacity of the car. If you equip your car with safety devices, these may or may not be considered for discounts. Nevertheless, you can qualify for discounts if you equip your vehicle with anti-theft devices. You can use various car insurance calculators available on the Internet for calculating your auto insurance premium. You just need to input some basic details and the calculator will come up with the figure you have been waiting for. Insuring your car is important for you as well as your family. However, you should also have a fair idea of how much you need to spend for insuring your car. You should precisely calculate your premium. For further information, please click on the following links:
- Car Insurance Premium Rates
- Car Insurance Calculator
- Car Insurance Comparison in India
- Online Car Insurance Calculations