Estimating new car insurance premiums before buying a car is essential for several reasons. First, it helps you plan your budget and choose a car that fits your affordability. You can find the best deal for your new car insurance by comparing quotes online. Second, it helps you understand the risks associated with your car and choose the appropriate coverage and add-on covers.
Car insurance providers take into account a wide range of variables when calculating your premium. Understanding the factors involved in determining the premium for a policy will help you make an estimate.
Steps to Estimate Car Insurance Before Buying a Car
You can determine the new car insurance burden on your wallet by considering the steps below.
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Research Car Models:
Look up different car models you are interested in. Insurance premiums vary based on the car’s make, model, and age.
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Check Insurance Categories:
Some cars fall into high-risk categories due to theft rates, repair costs, or safety features. Low-risk cars often have lower premiums.
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Add in Your Personal Information:
Being a young driver, male, or resident of an urban area can increase the premium. For a clean driving history, the premium rate will be lower.
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Calculate IDV:
Find the car’s Insured Declared Value (IDV), which is its current market value. Usually, one needs to pay a higher premium for an expensive car.
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Choose Coverage Type:
Decide between third-party liability and comprehensive coverage. Comprehensive coverage is pricier but offers broader protection.
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Select Add-Ons:
Determine if you need additional coverage like zero depreciation, roadside assistance, or engine protector. These will impact your premium.
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Compare Insurers:
Obtain quotes from multiple insurance companies. Use online comparison tools or contact agents for quotations specific to your car and needs.
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Consider NCB:
If you have a No Claims Bonus from previous policies, it can significantly reduce your premium. When you buy car insurance for the new vehicle, transfer the NCB to it.
Buy car insurance after estimating the premium. You can utilise an online car insurance calculator to get an approximate rate.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the relevant industry. It is advised to verify the relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.