For each investment that you make, be it something as large as buying a car or buying property or as small as your child’s toy, you ensure that you are investing in the right thing and getting the right value for it.
When you are always conscious about the investments that you make, then putting thought to your car insurance is a must too! With a basic understanding of certain facts about car insurance, Coverfox will help you get the best deal on your car.
Here is how you go about it:
Compare quotes for your car
Make list of all the eligible discounts.
Look out for essential add-on covers.
Follow the advice from an unbiased advisor who would also help you in claim settlement.
In India, there are about 28 general insurance companies registered with Insurance Regulatory and Development Authority (IRDA), most of which offer car insurance. Because of the wide options available, you will always get a better deal on your car insurance after some research about it.
A fact about car insurance premium which emphasizes the significance of quote comparison
For every company the premium for a particular car is based on Insured Declared Value (IDV) and the rating of the car model as determined by the company. The rating for a particular model is different for different companies. Thus, the same model may have a different premium depending on the insurance company.
To get the lowest possible rate, it is important to compare premium quotes from different companies. However, if you buy the policy from a broker, they do this comparison on your behalf. The quote given by the broker would be a short-listed few based on your requirement.
To save money on your premium, you should know about all the possible discounts you may be eligible for.
With so many insurance policies available for your car you are certainly eligible for one or more of the available discounts. However, many of us are not aware of these discounts. Listed below are some of these eligible discounts offered for car insurance.
No claim bonus discount
If you do not claim for a year you will get a discount on your premium during renewal. This discount is called no-claim bonus discount. To get the full benefit of no-claim discount, you should avoid making claims for smaller damages which you can easily bear.
Please note that if you fail to renew your car insurance policy on time and there is a break in your policy then you might lose this discount. So never delay on renewing your policy.
Anti-theft device discount
If your car has Automotive Research Association of India (ARAI) approved an anti-theft device installed then, the insurance company offers you discount on your car premium. This discount is available with all insurance policies.
Automobile Association member discount
All the insurance companies offer 5 % discount on premium for car owners who are members of Automobile Association.
Some insurance companies offer a discount on premium for their car insurance policies based owner’s profession. If you are a Doctor, Charted Accountant, etc. by profession then you are eligible for such discounts.
You would be surprised to know that you can fetch some discount based on your age. There are some companies which offer discount based on the age of the owner. This discount is termed as age-based discount. Before buying a policy, check, if with your age you are eligible for such age-based discount.
Look out if you are eligible for any of the above discounts before buying a policy.
To make your policy work more efficiently for you, having some add-ons covers, based on your individual requirements and driving styles is essential. Listed below are some essential add-ons.
Zero Depreciation- Saves your expenses
Zero depreciation also known as nil depreciation or bumper to bumper cover is an add-on cover which does not take into account the decreased value for car parts which is otherwise considered.
You must buy this add-on for all new or relatively new cars. Or if you are prone to getting minor damages on your car often. However, please note that this cover is available only for cars which are up to 5 years old. Read more details on zero depreciation in this
article we wrote a little while ago.
No-claim bonus protect- Protects your no-claim discount even after one claim
As discussed above insurance company offers a no-claim discount if you do not claim for a particular policy year. However, with even a single claim you will lose the discount you have earned. Thus, to protect your no-claim discount insurance companies offer a no-claim bonus protect add-on cover.
With this add-on cover your no-claim bonus is preserved even after a claim in one policy year.
Invoice cover- Security against theft
An invoice cover will ensure that you get on-road price for your car in case of an unfortunate incidence of theft or complete damage due to an accident. Without invoice cover, you will get only the insured declared value (IDV) of the car which would be lower or depreciated value.
Every year the value of your vehicle depreciates around 15%. Thus, with invoice cover you will get the maximum cover.
Engine protect- Protects your engine
Another useful add-on is engine cover. Engine is not only important but also expensive. In case of water logging, leakage of coolant damage, etc. there is a likelihood of engine breakdown, which is not covered in a basic policy. To repair this breakdown, you will have huge expenses
For Ex: A luxury car engine can cost you as high as INR 5,00,000. Thus, you must cover your car from engine breakdown with this add-on.
How is buying comprehensive cover with these add-ons beneficial? The cost factor
As per motor law, it is compulsory for a car to have basic cover that gives financial protection to the third party (both property and the person) in case of an accident. This basic cover does not cover any damage to your car. In order to cover damages for your car comprehensive coverage was introduced.
With this cover, the loss and damage to the vehicle in case of natural calamity, fire, etc. is provided along with the basic cover.
It is always best if you to have a comprehensive cover rather than just the basic cover because it would cover most of your expenses. Given below is the comparison of the premium increase vs increase in the overall coverage value,
As indicated in the table above, the comprehensive coverage with these essential add-ons is useful because most of your expenses will be covered. With even a single claim you will be able to actually break even the entire premium amount that you spent on these add-on
Unbiased adviser to help you with claim settlement
Just getting the right deal is never enough. As, even if you get the best of all the plans, there are chances that you may suffer during claim settlement. Thus, it is important to look out for an unbiased adviser. To get hassle free claim settlements visit us at www.coverfox.com.
We are an IRDA licensed insurance brokering agency which will not only give you options to help choose the lowest quotes, but also help you in claim settlement.
Buying car insurance from a dealer or an agent or the insurance company itself will leave you with limited policy options. However, with these basic steps and an unbiased advisory you can easily get your hands on the best deal for your car insurance as well as guaranteed claim settlement.
Lastly, do not procrastinate renewing your policy as you may lose one of the sure shot discounts that you are eligible for. Remember, that even if you renew before your policy before it expires, your new policy year would began only after the expiry of your previous policy.
For any more assistance please feel free to contact Coverfox.
All the best for your deal!