How Do Companies Calculate Car Insurance Premium

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How Do Companies Calculate Car Insurance Premium
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• Have you ever wondered how the premium on your
  car insurance policy is calculated? The premium
  can be accustomed for any bonus or discount that
  the insurance is eager to offer you, but in any
  case, they are planned only after the insurer has
  preset a premium that they want to charge you. To
  get the best out of all you must do comparison of
  car insurance policy online.  Here are some
  factors that influence the premium of the car
  insurance policy.

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Insured Declared Value

• Insured declared value, or IDV, is the value that
  the insurer places on your vehicle to calculate
  its worth at the time of applying for  car
  insurance. Motor insurance plans are protection
  policies.
• IDV is the highest amount that you can claim
  under a car insurance policy to recompense for
  any loss that arises  from theft or accident. So,
  if you undergo a total loss in an accident of
  your car that is worth Rs 4 lakh at the time of
  the accident, under no conditions will you be
  remunerated for more than Rs 4 lakh.

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When you are purchasing a new car insurance
policy, then the IDV will be calculated on the
basis of its showroom price.When you buy a new
car and are getting insurance for it, the IDV is
calculated on the basis of the price of the new
car, i.e., its ex-showroom price.
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Cubic capacity of the car

• Each car has an engine size, which is calculated
  as its cubic capacity. The size of the engine
  influences the insurance premium that a person
  has to pay under a third party insurance cover.
• Engine capacity is not a condition used for
  scheming premium for a comprehensive
  cover. Features, apart from that age of the car,
  like your occupation, age, the model of car, and
  your driving experience plays a major role.

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Use Car Insurance Calculator  To Buy The Best

• A car insurance calculator allows a person to
  calculate the premium of a car.
• Undeniably, car insurance calculator is a
  precious tool that assists a consumer to get the
  best car insurance plan. It enables comparison of
  different insurance plans online within a few
  clicks. Car insurance calculator helps consumers
  to estimate their insurance requirements and get
  a suitable plan accordingly.

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Car Insurance Premium Renewal

• Customers who already have policies for their
  cars need to renew the policy at regular
  intervals to get all profits. A person can use an
  online insurance service to do car insurance
  renewal.

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