Nowadays, purchasing car insurance is an entirely digital process thanks to insurers’ digital footprint. Every service is available online, from getting quotes to filing claims. This has simplified the process of buying car insurance for customers. Did you know, by 2024, the Online Insurance Market in India is expected to touch INR 220 billion? (Source: Mordor Intelligence).
When buying car insurance online, quotes play a crucial role in selecting a policy that is ideal for your insurance requirements. Your objective should be to obtain the best quote for a policy that has all the coverage you need. We’ve put together this article to help you get the most beneficial insurance quotes available online for yo
What is a car insurance quote?
When determining a car insurance quote, the age of the vehicle, its make and model as well as its owner’s information all is taken into account. Before deciding on a certain coverage, you can compare quotes online using the car insurance calculator provided by different insurers to determine how much a car insurance policy would cost.
Most of the insurance quotes online are instant and hassle-free. All you need to do is simply provide basic details of yourself and your car.
When requesting an insurance quote, always ensure to provide genuine and accurate information. Since car insurance quotes are typically valid for 30 days, you can continue to compare options and come back if you discover a better deal. Some of the standard types of car insurance coverage include the following:
- Medical expenses
- Own damage cover
- Accident cover
- Comprehensive coverage
- Liability coverage
- In addition, you will get the option to include add-ons such as mechanical breakdown, roadside assistance, etc. depending on what your provider offers.
Car insurance calculator: An ideal tool for selecting the best car insurance quote online
A car insurance calculator is an online tool developed to calculate the estimated premium amount for a particular car insurance plan. This online tool helps you determine the exact premium amount you would be required to pay for a particular insurance plan so that you can compare the premiums of different plans and choose the one which best suits your budget.
To calculate the premium estimate using a car insurance calculator, you need to enter your car’s basic details such as its age, fuel type, make, model and more.
A car insurance calculator is a perfect tool which not only helps you find the best plan as per your budget but also allows you to check plans that rightly satisfies your coverage needs. And the most amazing part is this tool is widely accessible online by various insurance providers and it is completely free to use.
Factors affecting the car insurance quotes online
To determine a car insurance quote, an insurer examines a number of variables. While the exact calculation parameter might differ from insurer to insurer, the following factors usually affect the cost of a car plan.
Age of the car: The age of the car plays an important role in determining the insurance quote. The older the car, the lesser will be its value and thus lesser will be the car insurance premium for it. Hence, a 9-year-old car will have a lower insurance quote than a car which is 3 years old.
Coverage: Your choice of coverage also affects how much your insurance will cost. It is among the most important elements used to determine an insurance quote.
For example, a basic third-party liability plan will be less expensive than a comprehensive plan that includes both own damage and third-party car insurance. Therefore, the insurance premium will increase as the coverage does.
No claim bonus: No-Claim Bonus, often known as NCB, is a discount you get for not filing any claims in the previous policy years. Even when you switch your insurer, your NCB stays intact. Your policy premium will continue to be discounted up to 50% for each year (consecutively up to 5 years) without a claim.
Location: A car insurance provider will usually base their quote on where you live. Accidents, vandalism, theft, etc. happen more frequently in some places than others. The cost of having the repairs made may also vary depending on where you live.
Type of the vehicle: How much your insurance is going to cost significantly depends on what type of vehicle you’re getting insured.
Car premiums are determined based on the make, model, as well as the variant of your car. An expensive car necessitates higher insurance rates to safeguard against theft, damage, etc.
Additional discounts: Car insurance companies offer a variety of discounts to lure customers. To discover the best quote for the coverages you require, compare these discounts online.
Insured declared value: The estimated market price of the car is known as IDV, or Insured Declared Value. If the covered car is stolen or severely damaged, this is the amount you would receive from the insurance. As a result, a higher IDV tends to raise the price of the policy.
Add-ons: If your insurer provides you with the option of add-ons, you can use them to extend your policy coverage. However, the type and number of add-ons you pick will in turn increase the price you pay for insurance premiums.
Driving habits: Driving carefully reduces the need for repairs and contributes to the preservation and growth of your No Claim Bonus. With the help of this discount, you can lower the price of the premium when purchasing a new insurance policy.
With the assistance of online tools such as a car insurance calculator, a comparison of different insurance plans for comprehensive or third-party coverage is a cakewalk. Using such tools renders the entire shopping experience much more convenient and simpler.
Make sure to compare the quotes based on the premium, coverage provided, features, and value-added services, then select the best car insurance based on your comparison. As a result, you get better coverage for a lower cost.
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.