What Add-ons Cover Increase the Car Insurance Premium?
You can only purchase an add on cover with the standalone own-damage or comprehensive car insurance. These add-on covers do not apply to the third-party policy.
Below are the common add-on covers that can increase the cost of your car insurance premium calculator:
1. Roadside Assistance:
In case of any roadside emergency, you will need prompt action. With this add-on, your premium increases due to the easy availability of emergency services.
2. Return to Invoice:
The standard car insurance policy may deduct some amount when you raise claims. However, with the Return to Invoice cover, you get the full value of the car. This can significantly increase premium costs.
3. Engine Protection:
The engine is one of the most important and expensive parts of the car. Buying an engine protection cover can increase your premium, as it provides comprehensive coverage for your engine. This is mostly because the add-on covers all engine repair costs.
4. Zero Depreciation:
It is highly recommended to get the zero depreciation cover. Since it removes the depreciation rate from claim settlements, the price usually increases.
Read More: Add-On Covers in Car Insurance
Why Use a Car Insurance Premium Calculator?
Using the insurance premium calculator allows you to customise your policy and make informed decisions. Some of the key benefits of using the calculator include the following:
1. The car insurance premium calculator is very convenient and lets you check your premiums.
2. The calculator quickly estimates the premium you'll pay. This helps you make quick decisions when buying car insurance online.
3. With the calculator in place, you can determine which add-ons you can purchase. You can select the add-ons and get an idea of the updated premium.
4. The calculator can help you identify the premium based on your specific requirements.
Read More: Save Money on Car Insurance with a Premium Calculator
How to Know the Premium Using a Calculator?
When you're using the insurance premium calculator from the car insurance company, make sure to verify all the details. Different companies often provide different cost and premium estimates based on various factors. These usually differ based on the type of car you purchase- new or old.
1. Used cars:
The following details are required for the calculation of the premium for used cars:
Type of car and the fuel it uses.
All details regarding the changes in ownership of the vehicle.
Any relevant claim information that has been submitted during the last year.
Details related to the previous owner or any other relevant information.
The existing car insurance policy details.
2. New cars:
To calculate the car insurance premium for new cars, the following details are required:
Make and model of the car.
The manufacturing year of the car.
Registration details of the car, such as registration number and place.
Start date of the new insurance policy.
Car owner details such as contact information, age and address.
How to Use the Car Insurance Premium Calculator Online?
You can use the calculator on car insurance online websites. These calculators play an important role in accurately calculating premiums and add-ons. This plays an important role in planning your budget accordingly.
Below are some of the key tips to follow for using the premium calculator effectively:
1. Always provide accurate information about your vehicle. If you have made any recent modifications, be sure to highlight them as well.
2. The insurance calculator will provide premium estimates based on the car insurance policies you buy. Apart from the standard policy, you can include add-on covers. Make sure to check the relevant premiums that may affect pricing.
3. Your car insurer may provide specific discounts and offers. If you wish to save on the premiums, you can avail of this offer. Using discounts lets you get the policy at a lower rate.
4. Thoroughly review the policy's terms and conditions. These can often vary depending on the policy coverage and the add-on covers you choose.
Read More: Step-by-Step Guide: How to Calculate Car Insurance Premiums
What happens if you try to buy add-ons with only third-party insurance?
You can't buy extras with third-party car insurance that stands alone. You can only get these covers with comprehensive or own-damage insurance.
Third party insurance only covers restricted liability and doesn't offer extra coverage. For add-ons to work, the plan must protect against own-damage. It might be necessary to upgrade the insurance type before adding any extra covers.
Expert Note
This information is based on standard motor insurance guidelines issued by the Insurance Regulatory and Development Authority of India (IRDAI) and commonly followed industry practices. Policy coverage and conditions may vary by insurer.
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