Purchasing car insurance is compulsory according to law and it is also a crucial decision that you need to take to secure your car from accidents and other unfortunate events. When you buy an auto insurance policy, you get cover for injury or death or loss or damage to your car due to unprecedented events like fire, accident, theft, death or injury to third party or damage or loss to third party. You need to use a car insurance calculator to figure out how much you need to spend for securing your car.
About car insurance calculator
Car insurance calculators are available online. These financial tools can be broadly categorized into the following types:
1. Four wheeler calculator
A four wheeler calculator is used to calculate the premium of a four wheeler or private car. It will help you figure out the amount of premium for the four-wheeler insurance policy you are going to purchase. With the figures supplied by a four wheeler insurance calculator, you can confidently purchase an insurance policy for your car or renew your existing policy. While calculating the premium, a four wheeler calculator will ask for some basic details such as city of registration, cost of car, date of manufacture of the car, and the cubic capacity of the car.
2. Two wheeler calculator
A two wheeler calculator is typically used to calculate the insurance premium for a two wheeler. This calculator not only offers you ballpark figures to purchase a new two wheeler policy but also supplies the premium for renewing your current or lapsed two wheeler insurance policy from any automobile insurance company. At the time of calculation for purchasing a two wheeler insurance plan, the calculator also lets you know whether you can transfer your no claims bonus (NCB) when renewing the policy purchased from any other insurance company with the present insurance company.
Inputs you have to provide for using a car insurance calculator
Commonly, you have to furnish the following inputs while you are using a car insurance calculator:
- Model of your vehicle
- Make of your vehicle
- Manufacturing month and year
- Variant of your vehicle
- Cubic capacity
- City where your vehicle is registered
- Fuel type
- Seating capacity
- Cost of electrical equipments
- Current IDV (Insured Declared Value)
- Cost of LPG additional fitting
- Cost of non-electrical equipments
After getting the total insurance premium, you can deduct tax (which includes Education Cess) to work out the final premium. On certain occasions, the car insurance calculator section has FAQs, which would include queries like the following:
- Have you installed ARAI (Automotive Research Association of India) approved devices in your car?
- Have you installed fiber tank?
- No. of years for Non Claim Bonus (in years)
- Are you a member of any Automobile Association?
- Is there personal accident cover for unspecified passenger?
Purchasing car insurance gives you the assurance to use your vehicle with due regards to law and life. When it comes to knowing the cost of your car insurance policy, you should definitely use a car insurance calculator to make things simpler for you.