Car Insurance Policy
Car Insurance or motor insurance as commonly referred to, helps to protect the losses you might incur while driving on a busy road. The loss could be a result of an accident or theft. The premium amount of your car insurance is decided on the basis of Insured Declared Value or IDV of the vehicle. A slight change in IDV can make a whole lot of difference to the motor insurance premium. If you raise the IDV, the premium rises and if you lower it down, the premium reduces. It is very important for any policyholder to compare various options before going for a car insurance renewal or buying a new policy.
How does Car Insurance Comparison helps?
In this age of advertisements, choosing the right car insurance can be quite a task. The ideal way to making a right choice is to compare quotes before buying a plan. An online comparison helps the insured not just to get the best premium available but also to add valuable riders and benefits to the plan. Comparing quotes can save you up to 55% on car insurance premium. No wonder, smart customers always make an online comparison before purchasing a policy.
Coverage under Car Insurance
Car insurance is of 3 types – Third Party Liability Coverage, Collision Coverage and Comprehensive Coverage.
Third Party Liability Coverage
– Third Party Car Insurance covers you against any legal liability to a third party resulting when you are at-fault driver. It covers damage/injury caused by you to another person/property. A Third Party Liability cover is legally mandatory in India under the Motor Vehicles Act.
– Collision Coverage protects the insured financially against damage to his/her own car. It pays the insured for damage caused by collision. Damage/loss due to theft or vandalism is not included in collision coverage.
– A comprehensive package car insurance policy is more extensive and preferred by most people. The coverage includes damage or theft of vehicle, third party legal liability and personal accident cover. The policy coverage can be further extended by opting for add-ons like accessories cover, engine protector, zero depreciation cover, medical expenses, etc.
No Claim Bonus
For every claim free year, the insured is rewarded with a discount on the renewal premium. This discount is No Claim Bonus (NCB). It is cumulative and increases every year. It usually ranges from 10% to 50% and can save substantial amount of money.
Key Benefits of Car Insurance
- Coverage against loss or damage to the insured vehicle
- Coverage against loss or damage to your vehicle caused by accident, theft, fire, explosion, self ignition, lightning, riots, strikes or act of terrorism, natural calamities
- Coverage against financial liability caused by injury/death of a third party or damage to the property
- Personal accident cover
What is not covered in Car Insurance?
- Loss or damage if a policy is not in force
- Gradual wear and tear of car and its parts
- Loss or damage to vehicle when driven by person without valid driving license
- Loss or damage to vehicle as a result of intoxication due to drugs, alcohol etc.
- Loss or damage to engine as a result of oil leakage
- Loss or damage to vehicle as a result of abuse of car manufacturer’s guidelines
Getting and comparing car insurance quotes online can’t get easier than here at PolicyBazaar. Whether you are looking to buy a new policy for your car or to renew your policy, get it right here in a few clicks.
Getting a car insured requires minimal documentation. For a new policy, you will need to submit the filled up proposal form and copy of the Registration Certificate (RC). For renewals, you will need copy of the RC along with the copy of the previous insurance policy.
Fill in Your Details to Save BIG Money
Whether you are looking to renew your policy or buy a new policy, it is of utmost importance to fill in your complete details. The details that you feed in the booking engine, lets it yield out customized quotes for you that fulfill your specific needs, the best way possible. Taking a little more time and filling in your form with care and discretion can eventually translate into substantial savings (up to 55%) on your car insurance premium.
The Key Entries that need to be specified in the booking engine before you start getting quotes are as follows:
Car Make, Model and Variant
It is the key deciding factor for the calculation of your base premium. The more luxurious and powerful your machine is, the more premium you’ll have to pay for getting it insured. For e.g. a SUV car will always have a higher premium than a Family Car.
Year of Manufacture
The Manufacture Year of your car lets the insurance company assess its Insured Declared Value (IDV) that in turn helps the underwriter to decide the annual premium for your car. Remember the thumb rule, ‘larger the IDV, larger the premium’.
CNG Fitted Car
Being more vulnerable to combustion, a CNG fitted car is usually insured at a slightly higher premium than a plain petrol/diesel car.
Loving your mean machine entails loving every bit of it including its accessories. You need to mention whether you do or do not want to get a cover on Electrical and Non-Electrical Accessories fitted in your car. Most insurers provide a cover for your car accessories at an additional premium of 4% on its value.
A smart customer is in a constant hunt to get more, while having to pay less. Such customers can avail certain discounts that help lower the premium or enhance the coverage.
- Voluntary Access – Voluntary deductible is the minimum amount that you declare to bear at the time of claim. The higher deductible you opt for, the lower will be your premium.
- Anti-theft Discount – In case your car is fitted with an ARAI approved anti theft device, your insurer can offer you some additional discount (2.5% on the OD Premium). This discount is provided for the simple reason that an anti-theft device will make your car less liable to theft.
- Members of the Automobile Association and some Professionals (Defense Personnel, Doctors and Govt. Employees) are entitled to get additional discount on their premium. So, never miss out to mention the same while searching for a quote.