Know How To Calculate Car Insurance Premium
Buying car insurance plans for your precious ride can often be a long and confusing process, even more so for someone who is buying car insurance for the first time. From conducting initial research to finalizing the plans, there is a lot to do when you are choosing a car insurance plan. That is why it is best to get a fair estimate of car insurance prices beforehand to simplify the decision-making process. This is where the car insurance premium calculator comes in handy. Let’s get to know what care insurance premiums are and how car insurance calculators work to find out potential premium rates for your car.
Premium is the amount that you pay to the insurance company in return for the insurance benefits. It can be considered the amount that you are obliged to pay since the insurance company is taking on the risk of insuring your car against damages. The Premium amount for any particular car is calculated based on several primary and secondary factors. This includes the make and model of the car, condition of the car, insured declared value, etc. Apart from that, you as a policyholder and driver-owner of the car can also influence premium rates. Driving history, claim history and other related factors are also considered when deciding the premium of a car insurance plan for your car. The premium amount of your car insurance plan can be easily calculated using the Policybazaar UAE car insurance estimator.
A car insurance calculator takes all primary tangible factors that affect car insurance premiums and quickly whip up the potential car insurance premium for your car. It is a free online tool that is available to everyone. You simply need to enter the details asked in the car insurance calculator prompt and get your car insurance premium with a simple click. Car insurance estimator can also be called comprehensive insurance calculator since it is the own damage premium amount that variates. Main factors like insured declared value of the car, applicable no claim bonus, promotional discounts, manufacturing year of the car, fuel types and your location. This calculation is further customised as per the plan and add-ons that you choose.
Using a car insurance premium calculator from Policybazaar UAE is a piece of cake. All you need is a list of some important facts about your car and previous car insurance plans. Fill out the details in required columns and space Select ‘yes’ or ‘no’ depending on whether you filed a claim in the previous year. Click on calculate and that’s it. You will have your premium rate.
Given below is the complete list of details you will need to calculate your car insurance premium using the Policybazaar UAE car insurance calculator:
A few factors are used in calculating the premium rates of car insurances prices in the UAE. These factors can include – insured declared value of the car, no claim bonus, and price of add-ons. Insured declared value is calculated by subtracting depreciation from the ex-showroom price of the car. IDV can be calculated using an IDV calculator as well. The Premium amount of your car insurance will have further two parts – third-party liability premium and own damage insurance premium.
The formula to calculate own damage premium goes = (IVD x premium rates + add-on rates) – (no claim bonus + promotional discounts).
The resulting amount is then added with the base price of third-party liability premium to get the final premium amount of your insurance plan. You do not need a third-party car insurance premium calculator here the price is generally fixed and added to the formula automatically.
Premium rates for own damage premiums generally range around 2-3% of the total insured declared value of the car. This is why premium rates are highly affected by the change that occurs in the insured declared value of a vehicle. Depreciation causes a change in the insured declared value of the car which can be calculated using a car insurance depreciation calculator. Further changes occur by considering the secondary elements that affect car insurance premium calculations. You skip all these hefty calculations and get your car insurance premiums calculated using the Policybazaar UAE car insurance estimator. This car insurance EMI calculator will not give you a fair premium rate but also suggest suitable plans for your car.
Several kinds of benefits can come out of calculating your car insurance plans beforehand. Given below are some of the top ones:
|Car Insurance Addons|
|Personal Accident Cover||Roadside Assistance|
|Engine Protection Cover||IDV-Insured Declared Value|
|No Claim Bouns||Passenger Cover|
|Engine Damage and Auto Insurance Cover Guide||Guide to Renew Car Registration in Dubai & Abu Dhabi|
Chances are that your premium rates will remain the same for at least the next three years after buying the car initially. But after that, there can be a change in the premium rates depending on depreciation of the car, condition of the car, insured declared value etc. You can use a car insurance premium calculator to get a fair idea of the changed premium prices. Car insurance premiums for older cars may decrease since the IDV is lower. But it’s best to not choose your insurance plan solely based on premium rates. Consider the extent of coverage you need and then choose the best possible option which is also cost-effective.
Ans: Yes, the car insurance premium is often higher for new cars as compared to the older ones. The reason is the higher insured declared value of new cars, also known as current market price/showroom price. New car insurance calculators consider this as one of the primary factors to influence car insurance premium rates.
Ans: Comprehensive car insurance plans are the best kind of insurance plans for new cars since they offer third-party liability as well as own damage cover with many other benefits.
Ans: Consider maintaining a flawless driving record, keep your car in good shape and file as few claims as you can. Premium prices will lower significantly by adapting just these few measures.
Ans: Yes, you can use a car insurance calculator to calculate the premium prices of your car insurance plan upon renewal.
Ans: You can easily calculate the premium for your car insurance plan using the Policybazaar UAE car insurance calculator. Simply enter the required basic information and obtain the premium amount for your insurance plan.
Ans: Yes, fuel type is considered by car insurance calculators and often affects the car insurance premium. Cars that run on more common fuels like petrol may get lower premium amounts. On the other hand, diesel, CNG and electric cars may get higher premium amounts. Electric cars may attract the highest premium amounts of all being the rarest of all.
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