Insurance Guide: Learn How To Calculate Your Car Insurance Premium

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Learn How To Calculate Your Car’s Insurance Premium

Have you ever wondered how your car’s insurance is calculated? You must hear insured declaration value i.e. IDV, no claim bonus i.e. ncb, depreciation etc. many times. But do you know their meanings? If not, then MsnFeed is giving you complete information related to the insurance today. Check out the slideshow below.

This is a simple guide We will give you a simple guide so that you can easily calculate your vehicle’s insurance.

There are two types of insurance There are two types of insurance.

The first is On Damage Comprehensive Cover and the Third Party Cover. Own Damage Comprehensive Cover Depending on the three major factors, they are location, car edge and its engine capacity. While the third party cover only depends on the car’s engine capacity.

We take a year old Alto as an example to understand the insights closely.

If your Alto car is more than one year old and is less than 2 years then the insured Declared Value car applied to it will be 80% of the X showroom price. If the car’s X showroom price is 4 lakh rupees, then its 80 percent is Rs 3 lakh 20 thousand rupees.

Now after this, the premium calculus will be calculated at 3.127 per cent. It will look at 3 lakh 20 thousand rupees. According to this, the money that will be made will be 10 thousand rupees.

Car Insurance Online

Now, the insurance premium comes in handy. This company rate company is different. Many companies give a few percent discount on premium amounts. Let’s understand it with an example. Let’s say that if a company is paying 50 percent discount then 50 percent of the 10 thousand rupees was raised to 5 thousand rupees.

Car Insurance Premium
Car Insurance Premium

Now the next and important stop is the No Claim Bonus. This shows how much money you have to pay for the insurance. If you have not filed for insurance last year, you get a discount of about 20 percent in premium. This discount increases in the coming years if you do not claim insurance. Remember that we are talking about cars for less than one year and less than two years old. In this view, if we look at 5000 rupees, 20 per cent no claim bonus is made according to the bonus of one thousand rupees. In this sense, you get a rebate of premium of Rs 5,000 for a sum of Rs 5,000 and you only have to pay a premium of Rs 4 thousand as a premium.

About Auto Insurance

Now the next and important stop is the No Claim Bonus. This shows how much money you have to pay for the insurance. If you have not filed for insurance last year, you get a discount of about 20 percent in premium. This discount increases in the coming years if you do not claim insurance. Remember that we are talking about cars for less than one year and less than two years old. In this view, if we look at 5000 rupees, 20 per cent no claim bonus is made according to the bonus of one thousand rupees. In this sense, you get a rebate of premium of Rs 5,000 for a sum of Rs 5,000 and you only have to pay a premium of Rs 4 thousand as a premium.

Now the last step remains. Personal Accident Cover and Service Tax are also added in the total amount of premium for insurance. Rs 100 as a Personal Accident Cover Join Whereas 14 percent of service tax is available. Now if the total amount is seen then 14% of Rs 5,486 will be added and it will add Rs 100 extra discount. In this case, the total amount is raised to Rs 6,348.

So this was the way insurance calculation was done. Hopefully now you can easily calculate the insurance calculator yourself.

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