Insurance is a contract for transferring risk calculate by the estimate calculator and given to the third party that ensures full or partial financial compensation for the loss or harm caused by some events that are beyond the control of the insured party. Under this contract, insured pays a fee called premium for which the insurer guarantees the insured against a specified sum for the loss occurred due to some damage specified within a specified period.
Car Insurance Estimate Calculator
Any risk that can be measured can possibly be insured. Generally insurance is categorized into two types
1. Life Insurance
It is a long term Insurance plan. Under this category, Insured pays the premium to meet the needs of his / his family needs when risk arises. Under this category insured can secure Own life, Family, Group, Medical expenses and Disability. In life insurance a fixed sum is paid as compensation
2. General Insurance
General insurance is a short term plan which protects the things we value, such as houses, cars and other valuables like gold and silver, from the financial impact of risks, big and small. Compensation in general insurance is normally proportionate to the loss incurred. Automobile & truck Insurance, property insurance, travel insurance etc. fall under general Insurance
It is a policy bought by vehicle owners to moderate costs associated with getting into an auto accident. Under this policy if an insured vehicle met with an accident, insurer will pay for the damage happened on behalf of insured paying out of pocket. It is mandatory in many countries to purchase a minimum amount of auto insurance.
Under this insurance ,premiums is paid annually to an automobile insurance company and the company then pays the costs associated with any type of vehicle damage.
The premium amount paid by policyholders varies depending up on factors like age of the insurer, sex, and experience in driving, number of accident and traffic rules violation history. If an insured desire for more complete coverage or have a poor driving track record, then he will end by paying higher premiums.
Car Insurance policy
In order to get cover for the risk, like damaged or stolen, associated with a car then you should opt for car or motor insurance. The premium amount depends on the basis of Insured Declared Value (IDV) of the vehicle. If you increase the IDV, the premium will also increase and vice versa.
Apart from accident cover car insurance plan deals with the following benefits:
- Coverage is provided against loss or damage to the insured vehicle caused by accident, theft, fire, blast, or damage happened because of socio-political disturbances or for natural calamities.
- Coverage for financial liability caused by injury or death of a other party or to his property, is provided.
The loss or damages will not be covered
- For a regular wear and tear of car or its parts.
- If a vehicle driver does not have a valid driving license.
- If the driver of the vehicle is intoxicated by drugs , alcohol or any other substance.
- Damage of engine because of oil leakage.
- Damage happened because of mishandling of a vehicle against guidelines specified by car manufacturer.
There are 3 types of car insurance –
· Collision Coverage
This coverage financially protects the insured against the damage of his car. He gets paid for damage caused by an accident.
· Coverage against damage or loss caused to third party.
This coverage is against any legal obligation to a third party caused when you are at-fault driver. That means it covers all the damages or injuries caused by you to other person or his property.
· Comprehensive Coverage
This is the most popular coverage. This coverage is wide-ranging and includes damage of car, burglary of vehicle, liability arising out due third party litigation and personal accident cover. It can also be extended by opting for additional coverage also like car accessories cover, engine protector and other additional benefits you want
No Claim Bonus is a rewarded given to the insured in form of discount on the renewal premium. This is given to the insured for every claim free year and increases every year. It usually ranges from 10% to 50% of the premium.
If you are opting for a new policy, then submit the completed application form and copy of the Registration Certificate (RC) of the vehicle.
If renewal, submit a copy of the Certificate of registration and a photocopy of last insurance policy.
Car Insurance Estimators
There are lot of sites which will guide you on calculating the premium to be paid for your car basing on IDV and other factors. Apart from calculating a premium these sites will also provide a comparison on various policies existed basing on your needs.
For calculating the exact car insurance premium, a customer needs to mention the details like date of registration of a car, facts on car, start date of a policy and other add-on cover ages that you want to opt. One best advantage people can derive is comparing premium rates of different insurance companies and finding out the most beneficial insurance.
To calculate car insurance premium rates, every insurance company uses its own method.
In order to calculate premium for used cars, details like car type, fuel type, car registration number, details of prevailing car insurance policy, previous car owner details if any, and claim reports for last year need to be given.
For calculating premium on new cars details like vehicle manufacturer’s name, vehicle model number, manufacturing year, place of registration of car, engine number with owner details need to be submitted.
While looking for an insurance policy, look for the best priced package that is suitable for your needs. Apart from features provided by policy also compare the policies of services provided by the insurer like 24-hour claims service or face-to-face contact, the claims settlement process, the deductible amount and to what level replacement coverage provided. The policies offered by various Insurance companies are differ a lot from each other, so think beyond the price that you are going to spend on a policy.