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Buying car insurance policy is so much easier now than that it was some years ago. The insurance industry which was predominantly dependent on paperwork has given way to online processes and procedures that make life easier for almost everyone involved.
One such step in the right direction is the car insurance calculator. As the name suggests, a car insurance calculator does the job of helping you calculate the car insurance premium based on the information that you provide. And the best part being, all of this takes place without you even having to interact with any agents or company representatives.
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In order to calculate car insurance premium, you need to provide information such as your vehicle details year of registration, manufacturer, model, variant, existing policy details, your current residence etc. And with a few more clicks, you will have a quote right in front of you. You can then decide if the policy is for you or not.
Of course, if you want to make the most of it, compare the quote and policy offerings with those from other insurers. And picking up a car insurance policy that has all the coverage that you need, is equally important as well.
Benefits of Car Insurance Calculator
The following benefits are yours for the taking if you choose to use an insurance calculator.
#1. You can see the change in the insurance premium based on the different parameters. This can give you a good deal of insight into how car insurance works and how the different components are coupled together.
#2. The calculators on web aggregator’s website allow you to compare policies from different insurers, thereby letting you pick only the best policy out there.
#3. If you use online tools to calculate car insurance premium, the entire process of buying a policy becomes easier and hassle-free. Most insurers allow you to continue from the calculation and buy a policy.
#4. Most importantly it keeps you away from interacting with insurance agents, who are known to aggressively sell products and add-ons that you might not even need in the first place. You essentially do a bit of research before buying a policy, allowing you to take the decision on your own.
In any moment, should you need any help, the insurers’ representatives would be more than eager to help you out.
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Factors That Decide the Car Insurance Premium
When you decide to buy or renew your car insurance policy, there are quite a few factors that decide the premium that you will end up paying for the same. Here are some of the major ones.
#1. Make
Your car’s manufacturer, model and variant all play a pivotal role in deciding the premium for your vehicle. A brand such as Mercedes would fetch a higher premium. Similarly, the premium of a top end model would be higher than an entry-level model.
#2. Place
The place or registration as well as residence also plays an important role. In urban places, the vehicle density is known to be higher which might result in a higher chance of meeting with an accident. Thus, the premium for the same car in an urban city would be higher than a semi-urban or rural area.
#3. Type of Fuel
Primarily, if your car is fitted with a CNG kit, you will end up paying a slightly higher premium as compared to petrol or diesel-based cars.
#4. Deductible
A deductible is an amount that you agree to pay when your car goes in for a repair or service. This amount helps you reduce your insurance premium liability. However, one must choose the deductible amount very carefully.
#5. NCB
If you have an existing policy and have not claimed the same in the previous term, an NCB discount is yours for the taking. The discount starts at 20% for the very first year and goes all the way up to 50% for five consecutive years.
To Conclude
Apart from the points mentioned above, features of the chosen policy and Add-ons also play a huge role in determining the pricing.
With the help of an insurance calculator, you can play around with some values and eventually, pick a policy that not only fits into your budget but also offers all the coverage that you have been looking for.
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