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IRDAI License No : HCG11821

Car Insurance

Car insurance is very popular now-a- days. Car insurance is the best way to secure yourself and your car. In this century car is mandatory object to every people now it is not a status symbol it is as important as having your own house. Motor Insurance or car insurance gives you cover if your car is stolen or any unfortunate incident happen. As per Indian traffic rule people who have car he/she must have motor or car insurance of third party liability. There are two types of car insurance one is Third Party Liability Insurance and the other one is Comprehensive Car Insurance. Now let us clear you what these means.

Types of coverage for Car Insurance

Third Party Liability

Third party insurance is the most important insurance you should have. Under the Motor vehicles act of 1998 any two wheeler or four wheeler owner should have third party liability insurance because if your car meets any unfortunate incident at least you can cover the third party. So if any accident occurred by your car you can cover the damage by this third party liability insurance. Though it is a rule of govt. but the harsh reality is most of the car in India doesn’t have any insurance and that’s why if they met any accident they don’t get any money. But in this insurance you won’t get any money for your own car which means if your car theft or your car got any kind of damage the insurance company won’t pay you.

Comprehensive Car Insurance

This is the safest policy because you will get money if your car stolen, or if it get into any kind of damage. This insurance also covers third party liability. Comprehensive car insurance also covers you if these mishaps happen-
  • If damage or loss happened by man like- burglary, riot, theft or stolen, or strike this policy will cover you.
  • If damage or loss happen by nature like earthquake, lightning, typhoon, storm, flood, hurricane, landslide ,cyclone etc.
  • If damages happen by vehicle while in transit through rail, water or road.
  • Also cover of personal accidents which also include death or disability of driver and also even death of co-passenger.

Add on Coverages of Car Insurance

Additional coverage is which are not even included also with the Comprehensive Car Insurance. You have to make extra payment for add ons. Your premium will become high by adding some add ons. But also you get great discounts and your car insurance become safer. Now we will discuss about some add ons
  • Engine Protect Cover
  • Return to invoice cover
  • Zero depreciation Cover
  • Loss of personal belongings cover
  • Daily Allowance
  • Road side assistance cover
  • Consumables Cover
  • Key Replacement Cover
  • NCB Protect Cover

What is IDV and why this is important?

Insured Declared Value (IDV) means present market value of your car. It also means the highest amount you can get from your insurance. Now we are giving a view about it-
  • All the registration details of vehicle.
  • The city where the car registration is.
  • Date of registration or the first purchase date.
  • The present registration type, i.e., company or individual owner.
  • Name of the manufacturer and also make and model name.
  • The car engine’s cubic capacity.
  • The description of vehicle.
  • The car’s ex-showroom price, the main cost of that car plus tax.
The IDV of a car after 5 years is a mutual settlement between the insurance company and policy holder. You should remember the less premium you pay you get less coverage for your vehicle. From the first year to every year the premium of your car become low that means the IDV of your car is going low.
Car’s Age Depreciation
New Car(1st year) The insurance company considered 5% of depreciation. So the car insurance is offered of 95% of the price of ex-showroom.
2nd year of renewal The insurance company considered 20%of depreciation. So the car insurance is offered of 85% of the price of ex-showroom.
3rd year of renewal The insurance company considered 30%of depreciation. So the car insurance is offered of 70% of the price of ex-showroom.
4th year of renewal The insurance company considered 40%of depreciation. So the car insurance is offered of 60% of the price of ex-showroom.
5th year of renewal The insurance company considered 50%of depreciation. So the car insurance is offered of 50% of the price of ex-showroom.

How the premium of a car is calculated?

  • Manufacture year of vehicle

    This means the year of the car. Older your car becomes your premium become lower.
  • Registration place of the car

    This really have a effect on your premium because if you live in a urban area your premium will be high because there is a high chance of your car will be theft or can meet an accident. But if you are from rural are or small town your premium will be low.
  • Present showroom price

    The premium you pay that mainly depends on IDV. So if you have an expensive car your premium will be high.
  • The car model name

    The imported brands like Lamborghini, BMW, Audi, Ferrari charged more premium.
  • The car’s purpose

    If that car uses for commercial use that car’s premium will be high but if that car is for personal use then the premium will be low.
  • Safety devices

    Car companies are updating their cars day by day so now day’s cars have many safety gadgets and tools for stopping theft or stopping from any kind of unfortunate incident. ‘Kala Tika’ won’t save you from those but insurance will. And if your car has all those safety tools the insurance premium will be low.
  • Claim history

    Paperwork require at the claiming time-
    1. Your car insurance policy’s copy.
    2. Filled claim form and claim intimation letter.
    3. Driving license’s copy.
    4. Invoices for both reimbursement and cashless claims with the proof of cash receipt.
    5. The registration certificate ORIGINAL/ COPY.
    6. If there any damage happen to third party the copy of F.I.R
    7. Authorized surveyor’s survey report.
    8. All the estimation from garage.

Key Benefits of car insurance online

  • You can access your insurance from everywhere and you can also check when your insurance gets invalid so you can renew it in a minute. And if you are new you can just compare insurance companies and which is best for you.
  • It always takes less time when you are doing it on online you don’t have to go anywhere you just can log in to a page and search for your perfect insurance.
  • The cost of doing insurance in online is very low and the paper work is so minimum.
  • It approves fast and you also can calculate your premium instantly.
  • This is also free from agents because you don’t need to deal with any agents when you are doing it on online you can get right information and you can take decision about your insurance.