Car insurance is a type of insurance policy that efficiently takes care of expenses arising from unfortunate events, such as an accident, theft, and any third-party liability. Car insurance is the best way you can protect yourself and your car from financial emergencies, including any legal liability, resulting from physical damage, traffic collision, bodily injury caused to you, your car, or a third party. Various car-insurance-specific terms & conditions are subject to vary with legal regulations in different regions of the country.
Car insurance is mandatory so choose a plan wisely. You can now save money, get discounts and find the best deal through PolicyBazaar. Compare various plans and buy hassle-free.
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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 auto insurance options before going for a car insurance renewal or buying a new policy.
Key Benefits of Car Insurance
The car insurance plan offers the 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 the injury/death of a third party or damage to the property.
- Personal accidental insurance cover.
Best Car Insurance Companies with Claim Settlement Ratio 2018
|Insurance Company||Incurred Claim Ratio||Grievances Settled|
|Bharti AXA General Insurance||81.74%||99.81|
|Future Generali India Insurance||76.50%||99.86|
|Liberty General Insurance||69.62%||99.06|
|Bajaj Allianz General Insurance||62.20%||99.28|
|Cholamandalam MS General||79.65%||99.82|
|HDFC ERGO General Insurance||84.37%||100|
|IFFCO Tokio General Insurance||79.19%||99.94|
|Magma HDI General Insurance||81.71%||84.96|
Disclaimer: The ranking of the insurance companies in this content is not in any particular order. The list is not compiled as per the IRDA ranking.
Why is it necessary to Compare Auto Insurance Policies?
It is necessary to compare the auto 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. Policy Bazaar makes it fairly easy for you. When you compare quotes here you can save up to 80% on auto insurance premiums along with getting add-ons like riders and benefits on your plan. Make an informed purchase. Compare online and know your auto insurance plan properly before buying.
Shortlist the Requirement for Your Coverage
Before digging into comparing different auto insurance plans, ascertain the kind of coverage you need. A liability policy is inexpensive than the comprehensive auto insurance policy but only if you are ready to compromise on some benefits because the facilities offered by the later is the best undoubtedly.
Compared to the coverage Option
The coverage offered in liability policy differs from the comprehensive policy. While liability plan only covers third-party liability, the comprehensive one covers you for the damages to the vehicle and the owner which is called as Personal Accident Cover. The limit varies from plans to plan. Moreover, additional add-on benefits are also offered by some auto insurance plans. So, it is necessary to check and compare this trait to decide the personal accidental cover along with the additional coverage, if any under the same auto insurance plan.
Compare the Insured Declare Value
The varied rate of IDV’s reflects different rates of premiums. Insured Declared Value, abbreviated as IDV, is the current value of the car after being adjusted for appropriate reduction. The rate of depreciation depends on the age of your car. Older the car, higher would be the depreciation and lowered would be your IDV. And it affects the Sum Assured. Hence, compare the IDV quoted offered by different car insurance plans is a must.
Compare Insurer’s Claim Settlement Practice
Claim settlement is the most crucial part of an insurance policy. Every buyer expects a hassle-free claim process and easiness of any car insurance policy which he is planning to invest in. Each insurance company has its own procedure. Hereby, it is essential to compare the claim settlement process of each auto insurance plan which is in your preference list to find out which type of rules best suits you and would enable a faster claim settlement.
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 the 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.
Comprehensive coverage is extensive and includes damage of the car, theft of the 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.
Customize Your Auto Insurance Policy with Additional Coverage
No Claim Bonus
For every claim free year, the insured is rewarded with a 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 the premium payable for your auto insurance. Let’s take an example if a policyholder doesn’t make a claim during the tenure of his auto insurance policy, he becomes eligible for No Claim Bonus, on the basis of which, a certain rebate is offered on the payable premium.
Personal Accident Riders
Personal Accident Rider is an optional add-on benefit that can be added to the comprehensive auto insurance by paying an extra premium. This rider provides the policyholder with the coverage of medical expenses due to damage, personal injury or disability caused due to an accident.
Cover for Car Accessories
By simply opting for separate add-on policy, you can avail the coverage for your car accessories, which a normal car insurance policy may not cover. Such additions may increase the premium, but it is always beneficial and cost-effective rather fitting a new car accessory.
Save Through Paying High Deductibles
A policyholder can save by paying higher deductibles. At the time of filing a claim, if you choose to pay higher deductibles against your claim, your auto insurance provider manages to give you some discount on premium later on.
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 the vehicle when driven by a person without a valid driving license.
- Loss or damage to the vehicle as a result of intoxication due to drugs, alcohol etc.
- Loss or damage to the engine as a result of oil leakage.
- Loss or damage to the 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 a copy of the RC (Registration Certificate) along with the copy of the previous insurance policy.
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 (up to 80%) 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 calculating the base premium. A luxurious, powerful and expensive car will attract more premiums. For e.g. an 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.
Process Steps for Acquiring a New Four Wheeler Insurance Policy:
Step 1: Log in to www.policybazaar.com and click on the product icon.
Step 2: If you want a fresh comparison of four wheeler insurance plans, click on ‘Begin your comparison’. In case you have searched before, you can retrieve your previous searches and continue from where you left off by clicking on ‘Get previous searches’.
Step 3: Before you start the comparison, keep a few details handy such as the city of your car’s registration, make and model, fuel type, and the car’s variant.
Step 4: To get new insurance quotes, key in all the above-mentioned details in the form and click on the ‘Next’ button.
Step 5: On the next page, fill in your personal information such as your full name, email address, and mobile number. Click on ‘View Quotes’ to proceed.
Step 6: In the quotes section, you’ll have a list of different auto insurers with a discounted price, add-ons, and final price. You can view each plan details and compare it with other plans well.
Step 7: To get a discount on the premium, click on the ‘Get Discount’ button on the left side of the page. After clicking the button, a form will appear where you have to fill in your details. After completing the form, click on ‘Apply Discount’.
Step 8: Click on ‘Select add-ons’ to tick the list of added extras in your car such as 24*7 roadside assistance, No Claim Bonus (NCB) protector, engine protector, key and lock replacement, and consumables.
Step 9: If you want to include passengers under the plan, click on ‘Passenger/driver cover’.
Step 10: To find the nearby motor garage, click on the ‘Garage locator’ on the bottom left of the page.
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 a discount and save money on the 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 an 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 (Defence 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%.
Always fill in your correct and complete details while getting comparative Quotes from Policy Bazaar.
Buy and compare car insurance quotes online easily here at PolicyBazaar. Whether you want to buy a new policy for your car or renew your policy, get it right here in a few clicks.
For more info : https://www.policybazaar.com/motor-insurance/car-insurance/