Know, How to Calculate Your Car Insurance Cost

You need to know that having car insurance is mandatory for all car owners and there are plenty of insurance offerings out there. Therefore, it might take a long time for the car owner to finally land on one policy. The biggest concern for an insurance buyer is the price of car insurance. Apart from the mandatory third-part car insurance, there are various types of car insurance one can opt for, such as, the comprehensive car insurance or the own damage policy.

What is third-party liability car insurance?

It is car insurance that will insure in case of damage caused by the first party, i.e. the car policyholder to the third party. The third-party could be the driver, owner or passenger of vehicles and passengers, who were injured by the vehicle of the first party. This is mandatory for all car owners to buy third party liability for their cars.

What is comprehensive car insurance?

Comprehensive car insurance is an optional policy not like third party liability car insurance. This offers a higher level of protection against comprehensive types of damages caused by road accidents or unwanted incidents. Also, this insurance plan covers the third party liability car policy meaning that you don't have to buy both insurances to receive the comprehensive benefits. Also, different car insurance companies include different additional features on the comprehensive insurance policy.

The factors you have to keep in mind when calculating insurance premium:

You should know that based on the information that you give the online premium calculator will give you the exact number to consider. There are a few other things also which determine the car insurance cost in India. Other things that are important as well are IDV (Insured Declared value), Make-model, car modification, engine capacity, location and demographic which further includes age, marital status, gender, profession.

IDV (Insured Declared Value):

Insured declared value means the market value of your car at the time of insurance purchase. But you should know that IDV will drop over time due to depreciation and the newer the car is the higher the insured declared value.

Make-model:

When it comes to insurance calculation the car model is one of the major factors. You have to know that the more premium and high end the car model is, the higher the insurance cost is. For instance, a premium SUV will be higher than a regular hatchback.