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CAR INSURANCE

Getting your car insured is technically a one minute job for you now through MYINSURANCEBAZAAR.COM .We can help you do:

1) A smart and effective comparison of different products available which suits your needs and help you choose the right policy so that you save the most on premium.
2) Choose the right insurance provider which not gives you the right product but the right service
3) We also service your claims too

But before you go and compare your car insurance you might have many questions in mind. Below some answers which might help.

What Is Technically A Car Insurance Policy?

Car insurance is a specific type insurance policy primarily designed for you to help you cover the financial loss which otherwise you had paid yourself

a) To get your car repaired in case there is an accident
b) In case the car been stolen.

In either of the cases other than you losing a peace of mind, you also have to pay a heavy cost which is technically taken care by your car insurance policy. So from the point of view of understanding car insurance it helps you to cover economic loss which otherwise you would have borne yourself.

Is Car Insurance Mandatory?

Yes, it is legally a mandate to buy car insurance.

What A Car Insurance Policy Would Cover?

1)Coverage against loss or damage of your car
2) Loss coverage for damage caused to your car due to things like accident ,theft , explosion , natural calamities , acts of terrorism and many more
3) Policies also come with accidental coverage for the owner of the car. In a case if he/she faces an accident while driving the loss can be covered under a personal accident cover.

Are There Many Types Of Car Insurance Policies?

Yes, there are three different type of car insurance polcies offered by Insurance companies, they are following:

a) Third party Liability coverage: A policy which comes with third party cover helps you to cover legal liability which may arise on you as a driver. It can help you to cover cost which you might have to pay to a third party in case of damages/injuries caused by you.

b) Collision coverage: This type of policies help you to cover cost which you might have to incur to cover damages happened to your car due to collision and which is otherwise referred as accident. Loss due to theft is not cover under these types of policies.

c) Comprehensive coverage: This is a smarter option for you as a car owner. Everything from loss due to accident, theft and personal accident are all covered are them. Policies offered under this category also come with additional features like accessories coverage, engine protector, zero depreciation, medical expenses and many others.

 

What A Car Policy Will Not Cover?

 

a) Regular wear and tear of your vehicle and its parts
b) Loss or damage to your car when driven without valid driving license
c) Drink and driving in that state and if any loss happens during this state
d) Damage or loss happening to your car due to oil leakage
e) Loss happening if the vehicle is not handled as per the manufacturer's guidelines

How Premium Of The Policy Is Defined?

The premium that you pay every year after the end of the term of the policy is calculated based upon the IDV of the car.IDV is called the Insured's declared value. IDV is calculated by adjusting the current manufacturer's list price with depreciation .The basic factors defining the yearly premium of the policy are:

a) Cake make , Model and Variant
b) Year of Manufacture
c) Any additional cover if applied for.

How Can You Save More On My Premium?

a) If you are renewing a policy this year in which you never made any claims in years preceding the current year then insurance companies do offers discount in the premium and this is also called No claim bonus

b) If you opt for an option like Voluntary access where you mention the minimum amount of money you will always pay in case your make a claim. In a case like this Insurance companies do offer discounts on the premium that you otherwise would have paid.

c) There are different professional groups and the members belonging to them are specifically are offered discount. So if you are a doctor, a government employee or a defense personal or even a member of the Automobile Association you can enjoy specific discounts so it is very important for you to put the right profession while comparing insurance online.

d) In a case you have installed security devices in your car then can claim for special discount on your premium.

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Why Evaluation Of Right IDV Is Required While Buying Car Insurance?

Every time when you try buying a new car policy or renewing an existing one a lot of offers being put forward to us from insurers, financial advisors and online comparison websites but the astonishing part of all these offers is that the premium prices on offer are always different even if it is for the same policy from the same insurer. But why is this phenomenon? This is one of the common scenario where policyholders end up buying car insurance plans motivated by lower premiums. But one should remember a lower premium means a low insured declared value (IDV).

 

The question now that need to be first answered is what is the correct value of IDV one should consider and why IDV  is so important? Let’s first understand what actually is Insured Declared value. From a car insurance perspective it is the amount of money for which your car is insured and it forms the basis of claim settlements in event the car is stolen or damaged beyond repair due to accident. Selection of the correct amount of IDV is important because the same define the maximum amount of claim which would be settled by the insurer.So in a case you are buying car insurance policy because it charges a low premium beware of the effects it would have on a later stage of claim processing.

IDV for a new car

At the point when you are buying a new car , the manufacturer’s listed price is the IDV but once bought and brought to road the value depreciates by at least 5% as per IRDA guidelines.So at any point when you a policy for a new car you should always keep in mind the default is always 95% of the on road price of the car.

Standard depreciation rates for calculating IDV

 

Age of the vehicle

% Depreciation for IDV

Not exceeding 6 months

5%

Exceeding 6 months but not exceeding 1 year

15%

Exceeding 1 year but  less than 2 years

20%

Exceeding 2 years but less than 3 years

30%

Exceeding 3 years but less than 4 years

40%

Exceeding 4 years but less than 5 years

50%

 

IDV during policy renewal:

At the point of car insurance policy renewal depreciation is a factor that defines the IDV of the car. The maximum IDV is always 50% of the manufacturer’s price at which the policyholder has brought the car.It is not like that insurer is the only person who sets the IDV when the policy is renewed but even the policyholder has a leverage to set an IDV 15% more or less what is arrived after depreciation. Once an IDV is accepted by the insurer, the policyholders hold the right to claim till the value of IDV.

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Renewing your car insurance policy? 7 way that can help you save money

 

 This is an important topic to discuss in a country where 30-35% of the cars and close to 70% of two wheelers driving on roads are uninsured. Though the legal system wants every car owner  to comply with the minimum insurance guideline of having at least a third party cover still a lot of people especially in smaller towns and cities don’t even have a policy in place, they carry with them fake or old insurance papers to just comply the norm. Even the insurance agents are not very much motivated to sell third party car insurance because of very less amount of incentivization.

We are specifically discussing here about renewals because most of the time the insurance policy for your new car is bought through the dealer and you have less opportunity to look for other options other than what your dealer has proposed. So renewal is the stage to make a sensitive decision.

 

There are few sincere thoughts that need to be put into before you jump into policy. Few sensitive steps which can help you eradicate the mistakes which you might have made while buying your first insurance from the car dealer and also help you build a long term strategy that ensures right protection for your car and enable you make a lot of savings.

 

Check Out Top 7 While Renewing Your Car Insurance Policy Things:

1.Which type of plan to select  : Though merely buying a third party car insurance cover can help you stay complied with the regulatory requirement but is the cover enough.The third cover is generally responsible to address claims which may arise from a third party because something happened from your car. The idea of building protection strategy for your loved asset is missing .So it is always recommended to buying a comprehensive cover that not covers the third party claims but also damages happening to your car.

2.Which add on cover to opt for: All car policies come with additional cover which you can buy or not buy depending on your requirement.Anyways for all these additional cover you have to pay additional premium over and above the basic cover. The most needed add-on covers options are Zero depreciation cover and Hydrostatic .Zero depreciation may be defined as suitable for car owners whose car’s age is just 3 years or less and for owners of high end cars for which they have a huge price to buy.

3.Is your most loved garage is part of your insurer’s affiliate garage network: This may be an important factor to consider. This makes the cash-less claim process very easy and you don’t need to run after insurers to get your expenses reimbursed.

4.Insured declared value: This may one of the most important factor to look into but for that you need to understand what it actually means.Every time when you renew your car policy your insurers evaluate the concurrent value of the car and as per definition ,IDV is the maximum amount of money which your insurer would pay you as a claim if car is stolen or it becomes completely unusable.Insured declared value is something that defines the cost of premium that you pay while doing renewal.

5.What is the amount of compulsory deductible? For raising a claim against any car policy , the policyholder is required to pay a minimum amount to initiate the process which is called the compulsory deductible. The amount of the deductible various between Rs.1000 to Rs.2000 . The amount is priced in a way so that you avoid making small and your erode the value of sum assured.

6.Portability of car insurance policy: You should always remember that you can any point of time switch between insurers in your car insurance policy.if you find that particular plan from another insurer is much better than your existing insurer, you can anything switch to this new plan during the time of renewal. One things that needs to kept in mind while portability that you can always transfer the existing benefits from existing policy to the new policy and also can extra cover and facilities over and above the existing benefits just by paying the extra cost.

7.Renewing car insurance policy online: In a world where technology is empowering a lot of things in your life, car insurance is also not left aside. While doing your car insurance renewal you can always online insurance comparison websites and gets car insurance quotes from multiple insurers in one go.This removes the mistakes which might have made while buying the first policy from your dealer and the chances of your getting a fair deals increases a lot.

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Voluntary Deductible-Option For Saving Car Insurance Premium?

We all know that how much car insurance is a necessary thing from the perspective driving a four wheeler on Indian roads and keep you favourite drive in the best possible condition.This is a fact which everybody needs to appreciate because while buying a car you are buying into something the value of which keeps on depreciating each year so investing further  for repair and damages is something that is not worth of doing so and this where your car insurance policy comes as great help.

Buying the right car policy not only requires a good amount of research but you should be smart enough to understand which addon to opt for and how can one save money on premium or otherwise you will always end up buying a plan which would be a complete mismatch to your needs and you might end up paying a higher premium,not worth of paying.

 

There are other mistakes which people end up making while being super obsessed towards savings money on premium, policyholders select some options which might give the initial discount while buy best car insurance policy online but which deeply affect you while making claim, one of them is when people voluntary deductions. To understand the worry it can create let’s first what voluntary deduction is ?

A deduction means an amount of money which a policyholder commits to pay from his/her own pocket at any point of time if a situation of claim arises.In any comprehensive car insurance policy there are two types of deductions which are available:

a)Compulsory deduction , this particular deduction is pre-fixed in any car policy.The insurance regulator sets the rate for the same. As per the current rates, the compulsory deduction is Rs.2000 if the car has more than 1500 cc engine or otherwise the rate is Rs.1000.

b)Voluntary deduction, this particular deduction is something which the policyholder himself accepts to pay. In a case like this insurer always incentivize the policyholder with certain percentage of discount on premium. A clear view of the table below can give you a clear idea of discount one can get avail

Amount of Voluntary deduction

Discount on Premium

Rs.2500

20% on the own damage premium, subjected to a maximum amount of Rs. 750

Rs.5000

25% on the own damage premium, subjected to a maximum amount of Rs. 1,500

Rs.7500

30% on the own damage premium, subjected to a maximum amount of Rs. 2,000

Rs.15000

35% on the own damage premium, subjected to a maximum amount of Rs. 2,500

 

The discount may look very attractive initially but the real problem starts when you make claim. In most of the cases you end up paying 50% of the claim out of your own pocket which defies the reasons why you bought the car policy.

To understand this in detail, take the case of Varun who drives a 1000 CC car and faces an accident.The claim that he end up raising with his insurer is Rs.15000 which was paid during repairs but to his astonishment his insurer only paid him Rs.7000. This is a classic case when you become super obsessed on discounts while renewing a policy.

Calculation for Varun’s claim:

Total Claim Varun’s raised (A)

Rs.15000

Consumable parts and components deduction (B)

Rs.3000

Compulsory deductible Amount (C)

Rs.1000

Voluntary deductible Amount (D)

Rs.2000

Total claim paid by the insurer [A – (B+C+D)]

 

Rs.7000

 

The above is a classic case, while opting for voluntary deductible to get few rupees of discount initially led Varun to pay Rs.8000 out of his own pocket. He forgotten the facts no insurer covers the fiber and plastic parts of the car and even there is a concept compulsory deduction’s one should always keep in mind less price means cheaper returns and that applies to a car insurance policy also.

 

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Five Factors Which Can Increase Car Insurance Premium

A the recent proposal by the Insurance regulator to increase third party cover by 50% and which will become effective from 1-April 2017 for car and SUV above 1000 cc might have make lot of four wheeler owners unhappy. As this has become regular phenomenon in last few years so you should always look at finding smarter ways to control the cost. Since the third party cover rates in most of the cases are controlled by the Insurance Regulator but there are other ways by which your Insurer can incentivize you with a discount but you need to consider few important things.

5 Most important factors can affect premium pricing of car insurance plans are:

1.    You might not be aware of the fact that your car insurance premium does depend a lot on the city you live and city you drive your car. Car owners living in cities with high traffic intensity end up paying higher premium compared to small town dwellers.

2.    Age is another important factor governing your car insurance policy premium. Even your marital status does also affect the premium. People who are younger and single always end up paying higher premium because as per data drivers at an younger age tend have harsh driving habits making them more vulnerable to making claims. Even in most case women end up paying a lesser premium compared to men. Women are believed to be better and safer drivers compared to men.

3.    Your car or four wheeler engine type can strongly add more cost to your car insurance premium. Cars run on diesel turn to have higher IDV increasing the cost of premium.

4.    Your car policy premium also get affected by the type of coverage you have opted for.If try over customization by adding add-ons which might of use to you can increase your car premium. Say you end up adding Zero Depreciation Add On In A Car Insurance Policy even when your car is already 5 years old would increase the premium sustainably.

5.    If you are very much conscious with your car’s protection and have installed additional security features well in advance, you can always claim for discounts from your insurer.

The factors listed can act as guide book on how can you control the car insurance premium cost at any point of time but it always advised to follow safe driving habits. Don’t make claims on your policy if the claim amount is less than 20% of your car’s IDV and you end up making use of your car insurance coverage is a much better and getting discounts on premium every time because of higher NCB.

Other than these, always try to follow a smart strategy while buying or renewing car insurance policy an older one but doing smart online comparison of various offering which exist in the market and which in turn can help you save more.

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Things One Should Know Before Applying For Zero Depreciation Add On In A Car Insurance Policy

Let’s first understand what really zero depreciation adds on actually means. To understand this better take the case of problems faced by Mr.Swami. Last year due to some serious accident Swami needed a fully fledged repair of his car but when he went back to his insurer for getting the repair cost reimbursed, the insurer only paid 70% of the cost and rest had to be borne by Mr.Swami out of his own pocket .This made him very furious but one thing that he forget is that his existing car policy was just a plain vanilla comprehensive insurance plan. In regular comprehensive car insurance plan without any zero depreciation add-on it is always the liability of insured to pay for difference in the market value and depreciated value of any part that is insured under the policy. So it is always advised to a policyholder to opt for zero depreciation cover to protect himself from paying high cost at the time of claim settlement.

Basic difference between Zero depreciation cover and Normal car cover:

To understand the difference lets judge both forms of cover four basic parameters which can give can possibly give you better understanding of things:

a) What happens during claim settlement?  So when you make a claim in a policy which already has zero depreciation add-on attached to it you can get full settlement of your claim without causing an dent to your pocket due of depreciation whereas in a normal policy you as a policyholder need to bear the cost of depreciation out of your own pocket

b) Premium: In a case of zero depreciation cover since your insurer bears the depreciation cost under the policy so for obvious reasons the premium would be always higher than a normal car policy.

c) Cost of repair and replacement of parts: Say in case you required massive repair of your car which also need replacement of certain parts of your car, a comprehensive car policy with zero depreciation would bear the total cost of repair and replacement cost but that is not the case of a regular comprehensive policy.

d) Age of the car:  This is one of the important factors which can help you decide whether to take a zero depreciation add-on or not. Most of the insurers offers zero depreciation add-on to cars which have age of less than 5 years .In fact as the age of the car increases depreciation risk also increases and even if you take zero depreciation for a old car then there are chances that still you might have bear some part of the cost while making a claim. So while deciding upon a zero depreciation add-on one should consider the age of his/her car because there is no point of paying an extra premium if the age of the car has crossed 5 years.

Read also - Zero Depreciation cover for your Car Insurance Policy Is Worthwhile?

So it is always advised to buy a zero depreciation add on for a new car where the same add some value. Another important factor one should remember in case you have opted by a zero depreciation cover please don’t make a claim multiple times in a year and make a claim only when the claim size is big. Multiple claims might not be even entertained by your insurer and they might also have some limits on the same   

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5 Great Reasons Why You Should Buy A Car Insurance Policy Online

In today’s world a lot of people are using online platforms to buy different kinds of product and services. A lot of the fashion stuff today is also bought virtually though you always need a perfect fit for the same so why not a car insurance policy?

 The major reason behind it is a lot of misconceptions surrounding the same regarding authenticity & reliability. One should be very clear that any insurance broker or an aggregator who is selling insurance online has to have an IRDA license similar to an offline broker or an advisor. You can even see their license numbers written in the footer of their websites as mandated by IRDA. Now looking at the reliability factor, this is another misconception why people don’t buy car insurance plans online. Doing a transaction online today is even been promoted by the Government of the country today and even offering incentives for it, so reliability is also no more a factor which should govern your decision to buy an insurance policy online.

But still if you are wary or reluctant about buying a car insurance plan online then you should better look into the benefits as discussed below

  1. It’s quite cheaper: The first and the foremost benefit of doing the same is it is quite cheaper. Most of insurance companies offer low premium rates because it involves less paper work and there are a lot of operational savings  also which is generally passed on to the consumer if he or she is buying plan online.
  2. Transaction is completely paperless: Getting into paperwork can turn quite tedious, buying a car policy offline requires you submit a lot of document to the insurer. On the other hand if you try doing it online, it is just few steps and the thing is done.
  3. Ease in decision making: Another important benefit buying car insurance online gives is that through any of the broker or aggregator website you can actually compare online car insurance policies at one go from different insurer. You just need to be very clear about what you require. But if you try doing the same through an offline process it is technically not possible and there are high chances that you end up buying a wrong product. So buying a car policy online eases the process of decision making.
  4. Easy, time saving and convenient : Buying a car policy online from the comfort of your home may be the nicest thing this has to offer. Doing it offline visiting insurance company offices, collecting document and then resubmitting it can be quite tiring process. Online makes the process much easier, you save a lot of time and at the end of the day it is higher satisfaction.
  5. Instant policy issuance:  Even if you do it on the eleventh hour then also you can get the policy issued then and there and the same get delivered to your registered email address by the insurer. You may fall in a situation where your car policy is expiring tomorrow and you need to travel outside. In a situation like this buying a car policy comes as real boon. It is just a few step process and the policy document delivered to you instantly from where you can just take a print out and carry on with your plans
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