When you are buying any kind of vehicle insurance policy, it can be useful to have an estimated premium for the coverage you would like to opt for. This can be achieved with the help of a car insurance calculator. The popularity of this calculator is increasing these days, especially as more people turn to digital insurance services. However, many misconceptions about the calculator are still prevalent. This can lead to a large chunk of policyholders not getting to benefit from this tool. This article lays down 4 such misconceptions and explains why they are not true.
Myth 1: Car insurance calculator is only useful for new cars
Fact: A lot of people believe that they will not be able to use a car insurance calculator if they want to know the premium for a used/second-hand car. This is not true as almost all calculators can provide the premium for all types of cars – new or used. When using the calculator, you will be asked to provide details regarding your car, including its age and date of purchase. Based on this and the other information provided, the calculator will determine the premium for the used car.
Myth 2: Car insurance calculators are not reliable
Fact: Car insurance calculators are reliable to a great extent. Almost all insurance companies have their own premium calculator. This is really beneficial because each calculator will determine the premium based on the criteria and conditions set by that particular insurer. This gives you a broader set of choices within which you can select an insurance plan that is suitable for you.
Myth 3: Car insurance calculator is useful only for buying comprehensive coverage
Fact: Insurance premium calculators can be used for buying all types of vehicle insurance policies – third party insurance, zero-depreciation comprehensive insurance, and long term motor insurance. Some people might have the impression that such a calculator may not be helpful for a third party policy as their premium tends to be standard across all insurers. However, there are various factors such as the cubic capacity, need for personal accident cover, and so on that affect the premium of third party insurance policy. So, a car insurance calculator can be useful regardless of what type of policy you wish to buy.
Myth 4: A car insurance calculator can be used only for premium estimation
Fact: Though the primary use of a car insurance calculator is premium estimation, it can be used for various purposes, especially to check what kind of coverage you can receive within your budget. It allows you to adjust several factors such as the choice of add-ons, the voluntary deductible, and the IDV. So, for instance, if the premium estimation is higher than your budget, you can go back and increase the voluntary deductible. Or, if the premium is lower than you had figured, you can opt for more add-ons. This way, you can create the right balance of coverage, deductible, IDV, and premium.
What’s more, the car insurance calculator also lets you buy the policy directly if you are satisfied with the premium.
Insurance premium calculators are available for many types of motor insurance policies, including bike insurance. Some insurers even have premium calculators for commercial vehicle insurance. However, using that might be trickier as the premium determinants are higher and more complex for commercial vehicles.
Misconceptions can spread easily. That is why it is necessary to do research on one’s own and then proceed, especially when it comes to making financial decisions. We hope our blog has helps you in the process of selecting the right premium and the right policy.