Premium is the amount that is paid to the insurer for transferring all the risks from the insured to the insurance company. The insurer charges the amount for insuring the car from all the risks, that amount will be known as premium. The premium may vary from product to product, place to place, etc.
There are many companies that offer an online premium calculator. If you want to calculate the premium for your car, you can visit the website of the company. Enter the car registration number and some more details, you will get the premium for insuring your vehicle. There are numerous benefits for an online premium calculator.
•You can compare the premium from different companies.
•This process is time convenient.
•There can be a discount on the online insurance premium.
•No extra fee for the agent.
•The process becomes unbiased.
Factors that can affect the premium
There can be various factors that can affect the premium of car insurance.
Insured Declared Value (IDV): - Insured declared value (IDV) is the value of the vehicle according to the insurance company. IDV is updated every year, as the value of a car decreases in the current market as the IDV decreases. The IDV may vary from insurer to insurer.
Centimetre Cubic (CC): - Centimetre Cubic capacity of the car is the size of the engine's cylinder. As the engine is one of the most important part of the vehicle, it can change the premium of car insurance.
No Claim Bonus (NCB): - NCB is the discount that an insurer offers at the time offering a premium. This depends on the car’s previous record, if the owner never claimed on his vehicle then the NCB discount will be high.
Additional Discount: - The insurer can offer you a discount on your car’s premium according to their policies. For example, you have installed an anti-theft alarm in your car then the insurer can offer you an additional discount on the premium.
Car Modification: - The insurer can revise some charges on your premium in case you have made any modifications to your car. For example, you have modified your engine with a gas kit, then the premium will increase.
Zone of RTO: - The premium of the vehicle will vary from RTU to RTU. If you have different vehicles from different RTU registration, then the premium will vary accordingly.
These were some major factors that can affect the premium of car insurance. So, check the factor and work according to them.