How to Calculate Car Insurance Premium?

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car insurance online, it is crucial to consider premium calculation to ensure it fits within your budget.Before we discuss the calculations, it is important to understand the factors influencing car insurance premiums.If your car is registered in an area where statistics show minimal accidental cases and where vehicle movement on the road is less, expect a lower premium. If you reside in an area where natural calamities are common or internal disturbances often lead to riots, the premium will be higher due to the increased risk.The premiums of two cars in the same category may be different.

For example, when you compare the premiums of two sedans, one that runs on a petrol engine and another that is an EV, the latter will be costlier.EVs have more complex components, and most of their parts are imported. In an accident requiring repairs and replacement, the expenses that need to be compensated would be significant.Whether your car runs on petrol or diesel also affects the premium.

Usually, a diesel-engine car has a higher premium than a petrol one. The latter requires less maintenance and is available at a lower cost.

Since the premium is directly proportional to the vehicle’s value, insuring a petrol-engine four-wheeler is cost-effective.However, remember that petrol engines have a lower lifespan due to fuel properties that can accelerate the wear and tear of engine components.If you have a CNG-fitted vehicle, insuring it will be costlier than the above two.Insurers reward you for being disciplined on the road. You will receive a no-claim bonus if you have not raised a claim during the previous policy year and your service record book does not show any major repairs, especially due to accidents.NCB rates range between