About Car Insurance

Car insurance offers financial protection against loss/damage to the vehicle that is caused by accident, theft, fire, explosion, natural calamities, etc. It also takes care of the financial liabilities that occur due to the damage caused by the insured to the third-party individual/property.

Importance Of Car Insurance

In India, around 54 road accidents occur every hour. What will you do if the repair cost is high and you are not able to get it done on time? Who will be responsible for the damages? This is where an effective car insurance policy will do its job. The policyholder can ask his/her insurer for assistance and get the repairs done on time. In the case of third-party liability, the insurance provider will deal with its aftermath without giving you any trouble.

The Indian government also stresses its importance via The Motor Vehicles Act, 1988. This act makes it mandatory to have at least third-party car insurance to enjoy a legal drive on the Indian roads. Anyone who dares to go against it has to face serious consequences.

Types Of Car Insurance Plans In India

Third-Party Liability Plan

It only covers the damages caused to the third-party individual/property. No coverage is provided to the policyholder. The third-party liability insurance quote is the mixture of a few components, which comprises of:- Third-Party premium.

Premium for Personal Accident Owner-Driver Cover.

Goods and Service tax.

Comprehensive Plans

It is also called the 'Big Brother' of third-party liability plans. Why? Apart from covering the third-party damages, comprehensive plans look after the policyholder's damages as well. The quote for the comprehensive cover is the sum of its components, which includes:- Third-Party premium & Own Damage premium.

Premium for Personal Accident Owner-Driver Cover.

Additional coverage (add-ons) along with Goods & Services Tax.

What Are The Benefits Of Car Insurance?

Apart from own & third-party damage cover, car insurance offers other benefits as well. They are listed below for your reference.

No Claim Bonus

It is a discount that is offered to the policyholder for filing zero claims over the previous years. The discount can range between 20-50% at the time of renewal.

Additional Covers

Apart from the basic cover, there are several additional covers that you can opt for wider coverage, but they vary from insurer to insurer. A brief explanation of them is given in the latter part of the write-up.

Cashless Garages

You can get the repairs done in network garages, which are associated with your insurance provider. Its benefit? You don't have to pay a single penny. The bill will be settled by your insurance provider.

How Is Car Insurance Premium Calculated?

The car insurance premium is the amount that you have to pay to keep your policy active. It usually varies from insurer to insurer & model to model. To calculate car insurance premium, you can use the below-stated formula.

Premium= Own Damage Premium – (No claim bonus + discounts) + Liability Premium as Fixed by the IRDA + Cost of Add-ons.

On the basis of the below-mentioned points, the company determines the car insurance premium-

The manufacture year of the Vehicle: This determines the age of the car. Older vehicles have low insurance rates in contrast to automobiles which are new.

Vicinity of Registration of the Vehicle: Your residential place and the vicinity in which you got your vehicle registered also has an impact on car insurance premium.

Model of the Vehicle: If the vehicle has steeply-priced or uncommon spare parts, the coverage for the top class of the car might be higher as well.

Use of the Vehicle: Car Insurance providers offer personal and business coverage rules. If a vehicle is used for commercial purposes, it will attract higher coverage rates.

Safety Devices: Today, most of the vehicles are geared up with safety capabilities and anti-theft devices. You're eligible to get a discount on the premium of up to 2.5% (if your vehicle is secure). Also, the devices must be approved by the Automobile Research Association Of India.

Claims Records: If you raise a claim against your vehicle insurance, the premium is likely to head up. If you abstain from raising claims, you may be rewarded with a No-claim Bonus (NCB).

Let's take the help of the above factors and display a practical example.

Car Variant Price of the Car IDV* Zero Depreciation (Add On)* Premium* Hyundai Verna (2017) SX Plus 1.6 VTVT AT (1591 cc) Rs.13,00,225 Rs.9,79,195 Rs.3,917 Rs.36,095 Table Data updated on 17-09-2020 *The values are calculated on the basis of the city (Delhi) and year of registration (2020).

What Add-ons Are Available In Car Insurance?

Personal Accident Cover

The insurance provider will offer financial compensation to you if your bodily injuries (in an accident) leads to partial/total disability or death.

Roadside Assistance

If you opt for this, you will get the necessary assistance if your vehicle is a victim of tire puncher, battery problems, etc.

Key Replacement Cover

If you lose your car key, this feature will cover the expenses of the new lock.

Zero Depreciation Cover

Under Zero Depreciation Cover, the insurance company will offer the original cost of the vehicle's part instead of the depreciated value.

Return To Invoice Cover

If your vehicle is damaged beyond repair (in an accident) or stolen, this add-on will compensate you for the invoice value of your car instead of its insured declared value.

Loss Of Belongings

If an expensive/precious item is stolen from your vehicle, this add-on will compensate you for it (partly/fully).

Daily Cash Allowance

If your car is stuck in a garage for more than 3 days, you will get a daily allowance to cover your transportation expenses.

Why Is It Best To Buy Car Insurance Online?

Easy Comparison

In India, there are several insurance companies that deal with car insurance. With so many options, it becomes quite difficult to choose the best among them. By doing an online comparison (based on premiums, network garages, etc), you will be able to find a suitable provider to meet your needs.

For a quick and convenient comparison, you can log on to PolicyX.com. You just have to provide your basic details and a list of several companies (along with their insurance details) will pop in front of you. The entire process will hardly take 30 seconds and you will get a list of options without spending your hard-earned money. To offer more comfort, PolicyX.com has prepared a list of top 15 insurance providers that offer car insurance.

Accessibility

With the online medium, you are free to access a company's website/app from any location. If you have an internet connection, then place and time is not a constraint for you. With the same, you can visit any insurance company's website/app from your home and easily buy an effective plan.

Affordable

Those who buy car insurance online are given certain discounts on insurance premiums as paperless documentation cuts down the insurance company's expenses.

Instant Premium Calculation and Approval

The insurance company comes out with a built-in tool that is popular by the name of the insurance premium calculator. You just have to provide your basic information and within minutes, several premium figures will pop on your screen to choose from.

Transparency

Comparing and buying car insurance online is a great idea to get clarity of each and every detail associated with the product. It will help in taking the right decision.

Claim Settlement Ratio Of Car Insurance Companies

A person invests in car insurance to get the required financial cover in the time of need. But what if your claim is cancelled because your provider is not financially capable to process it? The entire concept of car insurance will hold no meaning to you, isn't it? That's why it is important to choose the right insurer with a high claim settlement ratio.

Here's an exhaustive list of companies that offer car insurance plans with best incurred claims ratio -

Serial Number Insurance Provider Incurred Claims Ratio (2018-2019) 1 Bajaj Allianz General Insurance Company 62% 2 Bharti AXA General Insurance Company 75% 3 Cholamandalam MS General Insurance Company 84% 4 Future Generali Insurance Company 69% 5 HDFC ERGO General Insurance Company 82% 6 IFFCO Tokio General Insurance Company 87% 7 Liberty Videocon General Insurance Company 70% 8 Magma HDI General Insurance Company 65% 9 National Insurance Company 127.5% 10 New India Assurance Company 87.54% 11 Oriental General Insurance Company 112.62% 12 Raheja QBE General Insurance Company 102% 13 Reliance General Insurance Company 85% 14 Royal Sundaram General Insurance Company 89% 15 SBI General Insurance Company 87% 16 Shriram General Insurance Company 69% 17 ICICI Lombard General Insurance Company 74% 18 TATA AIG General Insurance Company 70% 19 United India Insurance Company 120.79% 20 Universal Sompo General Insurance Company 88% (As per IRDA Annual Report 2018-19) Table Data updated on 17-09-2020

What Documents Are Required To Buy Car Insurance?

Driver's license

Vehicle information

Bank details

Duly filled claim form

Tax receipt

All the paperwork (filled by you) sent by the insurance provider

Why PolicyX.com Is The Perfect Platform To Buy Car Insurance?

By now, the importance of having car insurance must be imprinted in your brain. It is no surprise that several insurance companies in the market have started their business because of the rising demand for car insurance. So, in the pool of options, why should you bet on PolicyX.com? Let's find out.

We are unbiased

Let's make it very clear. We only care about our customers. This means unbiased advice is always on the table. So, there is no scope of confusion.

Our support team is always on the watch

Our customer service team is also known by a code name- The Watch Guard. Surprisingly, this name was given to them by our loyal customers. No matter how many queries you throw at them, they will always guard (offer assistance) you until the end.

We have IRDAI's support

Every insurance company needs IRDAI (Insurance Regulatory and Development Authority) approval to freely operate in the market. Very few of the insurance providers are able to win the heart of IRDAI. Luckily, we are one of them. Registration number (IRDA/WBA 17/14), just saying.

How To Renew A Car Insurance Policy online?

There are two ways to renew your existing car insurance policy- log on to the website of your respective insurance provider or visit PolicyX.com. Just stick to the below-stated steps to do policy renewal via PolicyX.com.

Visit the top right corner of this page and find 'Compare Car Insurance Quotes Online'.

Provide the car number (if you have) and click on the tab 'Get Quotes'. Alternatively, you can click on 'Proceed without car number' and enter the required information to proceed ahead.

Now, provide the necessary details and click on the tab 'Proceed'.

You will see a list of policies on the right side of the page. Select the policy that is suitable for your needs'.

Make the payment.

You will receive the confirmation on your email address along with the policy documents.

What Is Not Covered Under Car Insurance?

Damages caused to the vehicle while driving under the influence of alcohol.

Loss and damages that take place because of war and nuclear risk.

Accidental damages that take place while using your car for illegal activities.

Regular mechanical expenses because of consistent wear and tear.

Losses incurred while driving without a valid license.

How To File A Car Insurance Claim?

To apply for a claim, you can go by two modes- cashless and reimbursement. A detailed explanation of both is given below.

Cashless Claim

Take your vehicle to a network garage and inform the insurer.

Submit all the required documents along with the claim form.

Allow the surveyor to analyze your vehicle and the whole scenario.

After getting the approval, the surveyor will directly connect with the garage and pay on your behalf.

Reimbursement Claim

After your vehicle is repaired from a non-network garage (with expenses paid), you can apply for a reimbursement claim.

Submit the claim form attached with the necessary documents.

The insurance company will analyze your case.

After getting the approval, the company will reimburse you directly.

Take a note of the below-mentioned documents, which you have to submit along with the claim form-

Copy of the insurance

Driving license copy, Registration Book and FIR (if required)

Copy of repair bills and payment receipts

Sets of keys/booklets/warranty cards (in case you are a victim of theft)

Tax payment receipt

Any other document requested by your insurance provider

A Thing To Remember - If your claim (cashless/reimbursement) is rejected, please ask your insurer to highlight the reason for it so that you are careful in the future.

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