In recent years, possessing a four-wheeler has become not just a prestige symbol but also a need. A four-wheeler is regarded as a significant asset in everyone's life. Getting a car insurance policy is a wise decision to make after purchasing a car. A car insurance can protect you financially in the event of an unforeseen accident or minor incident on the road, keeping you and your four-wheeler safe at all times. Also, you must have at least a valid third-party car insurance coverage to drive a vehicle in India as per law, even if you don't have a comprehensive four-wheeler insurance plan in place. However, every four-wheeler insurance policyholder must contribute to the insurance plan by paying a premium. But have you ever wondered how your four-wheeler insurance price is determined? Often, the premium may be adjusted to account for any discount or bonus that the insurance provider is prepared to provide you, but in any event, they are computed only after the insurance provider has decided on a premium to charge you. In this case, a car insurance premium calculator comes in handy. You may take the assistance of a car insurance calculator provided on the official websites of leading insurance providers in India like Tata AIG and others to determine how much you exactly need to pay for your four-wheeler insurance plan. What Exactly Is a Vehicle Insurance Premium Calculator? Well, a vehicle insurance premium calculator is a very useful online tool that allows you to calculate and generate an insurance quote for car insurance. It also allows you to compare four-wheeler insurance rates from different insurance providers in India. All you need to do is punch in a few details into the car insurance premium calculator, like the make and model of your car, the registration number, and so on, and your free quote for car insurance will be displayed instantaneously. When it comes to four-wheeler insurance, each one of us has our own set of criteria. A car insurance premium calculator can assist you in locating and selecting the finest four-wheeler insurance coverage that matches your needs. Furthermore, this makes it straightforward and time-saving to evaluate different insurance firms in India (even old insurance providers) and select a reliable insurance plan. How Four-Wheeler Insurance Price Is Calculated? A commonly asked question is how the four-wheeler insurance price is calculated. The policy papers contain a variety of sections that should be read and understood, including exceptional instances, terms and conditions, and the list of exclusions. Nonetheless, most individuals agree with the insurance provider on the set premium amount, although they frequently do not comprehend how to calculate car insurance premiums. The following factors must be considered when calculating the premium for online four-wheeler insurance using a premium calculator: Insured's Declared Value The IDV (Insured Declared Value) of four-wheeler insurance is approximately equal to the prevailing market price of the car. It's the highest car insurance claim amount you receive in the case of a total loss (irreparable damages) or theft. The IDV rate fluctuates over time due to depreciation. Also, remember that the Insured Declared Value is only utilised for standalone own-damage or comprehensive car insurance coverage. The Four-Wheeler Itself Some automobiles have higher insurance premiums than others. The make and model details of the car are taken into account. A luxury car will have a higher car insurance premium than an affordable hatchback owing to the higher market price and maintenance costs. The Four-Wheeler's Age A broader range of coverage would be preferred for a new vehicle. This is due to the high expense of repairs if the new four-wheeler is damaged. Instead, for an older car, the cost of replacement components and maintenance may be within your budget. As a result, the age of the vehicle determines the vehicle insurance price. The Engine’s Cubic Capacity The price for car insurance, especially third-party insurance, is determined by your car's engine's cubic capacity (cc). The higher the cc of your four-wheeler, the higher the third-party insurance premium. Type of Fuel Possessing a CNG-powered four-wheeler will result in a higher premium since the cost of maintenance is comparatively higher than that of a diesel or petrol car. Damage repair costs are higher for cars equipped with a CNG kit. As a result, the premium is higher. Your Area of Residence The location where your four-wheeler is registered has a significant impact on the cost of your car insurance. The premium will be larger if you reside in a densely populated urban area or metropolis because the likelihood of claims increases due to excessive traffic, vandalism, congestion, and other circumstances. Type of Coverage The Government of India determines the third-party premium, which is a mandated coverage. However, if you choose comprehensive coverage, the premium may differ from insurer to insurer based on the discounts and rates they provide. If you purchase four-wheeler insurance add-ons in addition to comprehensive coverage, your rate will rise correspondingly. Deductibles A deductible is the proportion of the claim amount you must pay out of pocket at the time of the claim. In addition to the regular deductible imposed under automobile insurance, you can request that the insurer increase the deductible. Higher deductibles will result in a lesser premium paid to you, and vice versa. The Bottom Line In today's world, purchasing a four-wheeler is not just a luxury but also a need. However, because of the high cost of the purchase, consumers will need to insure their automobiles in order to be safe and avoid additional costs if the car is damaged. Customers may lower their premium payments by ensuring that their Insured Declared Value is right and by purchasing a car that they will really use and that meets their needs. It is also advisable to consider several choices before selecting a certain insurance plan. You can search online and look for reputable insurance partners like Tata AIG that offer cutting-edge insurance plans that are not only customisable but also affordable.
