Get a quote online and save 15%
Getting a car insurance estimate, or quote, is the first step towards buying a new car insurance policy.
Basically, we ask you some questions, assess the risk of insuring you and your car, and then calculate the premium we would charge you.
If you buy a Gold Comprehensive or third party insurance policy online, you’ll receive a 15% discount on your premium.
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How is the cost of car insurance calculated?
There are lots of factors that can influence your premium, including:
Your level of cover
Comprehensive insurance costs more than third party cover.
Value for which your car is covered
Expensive cars cost more to replace.
The higher your excess, the lower your premium, and vice-versa.
Typically, younger drivers pay more.
Type of car
The higher your car’s performance, for example, the larger the premium tends to be.
If your car is used for business, you’ll pay more.
Where you keep your car
If your car is parked overnight on the street rather than in a garage, your premium will be higher.
The fewer claims you and any other listed drivers have made in recent years, the less you’ll pay.
How much can I insure my car for?
With Budget Direct, you can insure your car for its market value or, in some cases, for an agreed value.
Market value is the reasonable cost to replace your vehicle with one of the same make, model, age, mileage and overall condition.
To get an idea of what your car may be worth, search for it in the Red Book or on car sales websites.
Please note that the prices provided by these sites are only meant to be a guide. Your car’s market value will be determined by us at the time of the loss or damage.
Agreed value is the amount we agree to insure your car for. We may offer you an agreed value, as long as:
your car is less than 10 years old; and
your vehicle has not been converted to LPG; and
the agreed value is within an acceptable range of the market value.
The value for which your car is covered is shown on your insurance certificate and in your online account.
Car Insurance Calculator
A car insurance premium calculator is a useful online tool to figure out the quotes of different insurance companies in India.
The car insurance premium is calculated based on the below mentioned formula.
Own damage premium – (depreciation + NCB) + Liability premium
The premium for your car insurance depends on the below mentioned factors:
No claim bonus (NCB)
Remember that the IDV of a new car will always be the maximum, but it will gradually lower down due to depreciation.
Essential Components of a Comprehensive Car Policy Premium
This covers damages and losses caused to your car as well as third-party liability. By this we mean,
Natural Disasters – Earthquake, floods, cyclones, landslides, etc.
Man-Made Disasters – War, Riots, terrorism, strikes, fire, etc.
In Own-Damage, the premium is thus calculated based on a. Insured Declared Value (IDV) b. Age of Vehicle c. Cubic Capacity of the Car’s Engine.
Further in this article, we will explain how the IDV, age of the vehicle and engine’s cubic capacity impacts your premium.
The owner of the car is legally liable for any injury or damage to third party life or property because of an accident caused by them. Driving a motor vehicle without insurance in a public place is a punishable offence in terms. In case of an accident that results in fatalities for the third party, the Third Party (Liability) comes to your rescue. The compensation is fully paid by the insurer.
What does third-party insurance policy compensate?
Death or bodily injury to the third party
Damage to third-party property
Death of the insured vehicle owner or driver
Permanent Total Disability of the insured vehicle owner or driver
Third party property damage that will be covered is up to 7.5 Lakh and in case of physical injuries/death it will be taken into court tribunal.
3. Personal Accident Cover
The PA cover is a relief in unfortunate and unforeseen events. This is especially when you meet with a fatal accident or are rendered disabled in whatever capacity.
Under the policy, most risks related to accidents such as burns, broken bones, disability or deaths are covered. The need of the cover is such that the law compulsorily statutes that PA cover is provided to the owner-driver.
According to CNNMoney, there’s only one way for an auto insurance provider to quote car insurance rates: based on risk.
This risk is essentially an educated guess. There’s no way for an insurance provider to predict your skill and safety level as a driver. Risk will be statistically assessed based on a collection of risk factors, including but not limited to age, sex, marital status, driving history, and type of vehicle.
Just as important to remember is the fact that not all insurers calculate risk with the same formula. Risk is a guess. It’s anyone’s game.
Comparison shopping insurance providers is the only way to take your risk assessment into your own hands to find the cheapest market rates.
Insure.com’s survey blames Michigan’s sky-high car insurance rates on the generous personal injury protection benefits required in the state. You see, Michigan is a no-fault car insurance state. This means that every single driver on the road must purchase personal injury protection (PIP) within their auto insurance policy in order to legally drive.
West Virginia doesn’t have the same no-fault laws as Michigan, but it has its own share of problems: specifically, deer. West Virginia is a state with vast rural regions. State Farm data indicates that drivers are statistically more likely to hit a deer in West Virginia than any other state.
Georgia car insurance prices are driven up by a number of factors, including Atlanta traffic, a rising number of personal injury lawsuits, and a surge in uninsured and underinsured motorist claims.
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