Car Insurance or motor insurance covers for losses that you might incur if your car gets damaged or stolen. The premium amount of your car insurance is decided on the basis of Insured Declared Value or IDV of the vehicle. If you increase the IDV, the premium rises and if you lower it, the premium reduces. It is important for any policyholder to compare various options before going for a car insurance renewal or buying a new policy.
Key Benefits of Car Insurance
Car insurance plan offers following benefits:
- 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.
Why is it necessary to compare car insurance policies ?
It is necessary to compare the car insurance policies as it can save a substantial amount of money and give you better coverage options. However, comparing the policies manually can be a daunting task. PolciBazaar makes it fairly easy for you. When you compare quotes here you can save upto 55% on car insurance premiums along with getting add-ons like riders and benefits on your plan. Make an informed purchase. Compare online and know your car insurance plan properly before buying.
- Coverage under Car Insurance
- There are primarily 3 types of car insurance –
- Third Party Liability Coverage
Third Party car insurance provides cover against any legal liability to a third party caused 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 of their own car. It pays the insured for damage caused by collision which is usually an accident. Damage or loss due to theft or vandalism is not included in collision coverage.
A comprehensive coverage is extensive and includes damage of car, 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. This type of coverage is the most popular as it offers end-to-end coverage and thus less stress for the policyholder.
No Claim Bonus
For every claim free year, the insured is rewarded with discount on the renewal premium. This discount is called – No Claim Bonus (NCB). It is cumulative and increases every year. It usually ranges from 10% to 50% and can save a substantial amount of money on your premium.
What is not covered in Car Insurance?
Following features are usually 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 a 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.
- Eligibility/Documentation Required for Car Insurance
Getting a car insured requires minimal documentation. For a new policy, you must submit the filled up proposal form and copy of the Registration Certificate (RC). For renewals, you will need copy of the RC (Registration Certificate) along with the copy of previous insurance policy.
Quick Note:-Carefully fill in your complete details. This is an important step and will save you a lot of hassle during claim time.
How to Compare Online on PolicyBazaar ?
On PolicyBazaar you have to fill a few simple details like make of the car, model, variant, year of manufacture, etc. You will then get quotes from various insurance providers. To get better discounts you must fill the form carefully. This way you will get customized quotes, one which saves money (upto 55%) on premiums and is also the best fit as per your needs.
You must be familiar with the following terms while filling the form:
Car Make, Model and Variant
This information is critical to calculate base premium. Luxurious, powerful and expensive car will attract more premiums. 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 facilitates the underwriter to decide the annual premium for your car.
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.
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.
Fill in these details carefully then sit back and relax for a while. You will be presented with a list of insurance plans that suits your requirement at best possible rates.
Get Discounts, Save Money, Buy Smart
A smart customer is in a constant hunt for discounts which will reduce the burden on his pocket. If you are one among them then here are a few tips that will help you get discount and save money on premium value of your car insurance.
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. Simply put it means that the financial burden on the insurance provider is less and you will also chip in when an accident or car damage happens.
In case your car is fitted with an ARAI approved anti theft device, your insurer will offer 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.
While getting quotes for your vehicle at Policy Bazaar, you might see for yourself how changing even minor details make a huge difference to the final calculated premium. For example, take the case of Dr. Gupta. He’s a doctor by profession and needs car insurance for his brand new Renault Duster. His car is fitted with an ARAI approved anti-theft kit. While getting a car insurance quote, he neither mentions his profession nor the fact that his car is fitted with an anti-theft kit. Thus he ends up paying a higher premium. On the contrary, if he did mention about these then, needless to say, his premium could have been lower by 25%.