How to Choose the Type of Car Insurance that Suits You the Best?
Now that you understand the nuances of both types of Car Insurance Policies you must be contemplating about which one to choose.
Here are some valuable recommendations to help you with your decision: The Third Party Liability Car Insurance policy is generally chosen by individuals who want to buy car insurance as it is mandatory by law
If you seek overall protection from the damages caused due to unforeseen accidents, opting for a comprehensive car insurance policy is the best option. Additionally, you can pick add-on covers for car insurance as per the risks which are more relevant to you
How is a Car Insurance Premium Calculated?
Vehicle owner's age:
The individuals between 18 to 25 years of age have to pay more premium amount than the others.
The premium for a CNG type vehicle is higher than that of petrol of diesel type vehicles.
A lot depends on where you drive your car. An area with a higher density of traffic like cities will have higher premium rates.
Insured Declared Value (IDV) is the maximum amount to be paid to the insured person in case of any damage. This is decided by RTO details, brand, selling rice and affects own damage cover.
The cubic capacity of your car will affect the premium rate you pay to get your vehicle insured.
Factors like add-on covers, discounts, purpose of the vehicle and safety features such as airbags and anti-theft devices will also be taken into consideration while calculating your car insurance premium.
Types of Car Insurance Policy:
In India, this is a mandatory cover and there are strict fines if a person does not have a Third-Party cover. These cover the financial losses or other kinds of losses to the third party which is involved in any kind of accident with your car. It does not cover your expenses. TPL depends on the car's capacity and is issued by the Insurance Regulatory Authority of India.
Own Damage Cover:
This is the best cover which also covers your vehicle from any kind of damage even due to natural calamity. This means that it will have a higher premium. As the car grows older the IDV decreases and premium decreases too. It is calculated by the percentages of IDV.
Formula to calculate IDV is equal to the showroom price of the car added to any additional accessories that may have been installed in the car subtracted by the depreciation value of the car with every passing year.
This makes the formula to calculate OD as IDV multiplied by premium rate decided by insurer added to any kind of add-ons which could be in the form of bonuses subtracted by the discounts and benefits like no claim bonus or theft discounts.
Personal Accident Cover:
The car insurance goes beyond protecting your car and also safeguards and cover your personal injury costs as well. This is a vital part of being completely protected. With rising prices of medical health care, the insurance must cover even any basic injury caused by the accident which could ease out the financial burden.
As the sum insured to the person goes higher, and the premium rate also keeps on increasing similarly . Use Our Car Insurance Calculator to calculate your premium easily!
How to Save on Car Insurance Policy Premium?
Know Your Car's IDV
The value of your car depreciates overtime. Hence it is important to know your IDV. A lower IDV attracts a lower premium.
Claim Your No Claim Bonus:
The No Claim Bonus is your rightful reward for being a responsible driver. Earn discounts of up to 50% on your premium year-on-year.
Become AAI Member:
Become a member of the Automobile Association of India and you can secure a concession on personal-damage premium.
Increase the Voluntary Deductible
A voluntary deductible is the amount you agree to pay out of your pocket. The higher your voluntary deductible, the lesser will be your premium. Know what are deductibles for car insurance before purchasing.
How to Renew Car Insurance Policy If It Has Expired?
There could be many reasons that your policy could have lapsed and you need to renew the policy before the expiration date to continue driving your vehicle safely. Thus, you must keep in mind to renew expired car insurance as fast as possible to avoid any kind of legal action and also to have safe coverage for you and your vehicle.
If due to any reason your car insurance has expired here are the steps to follow:
Getting in touch with the agent
In case the policy is expired the first thing to do is to get in touch with your agent through which you got the insurance or to fill the renewal form online. The form is always available on the website of the insurance provider. An experienced agent has good knowledge of the working of insurance and things to do after the insurance has expired and may guide you through the process smoothly. Online renewal can save a lot of time if you are already familiar with the basics and don't need an agent to renew your insurance, this process is convenient too. It is important to keep in mind that wasting time is useless as you may have to pay a high premium at a later stage and also could face a penalty while driving on the road without insurance.
Do Not Drive
While the insurance is expired and is in the process of renewal it is important not to drive the vehicle. This is the reason why it is advised to apply for renewal before the expiration of the previous insurance. Driving without insurance is like driving at higher risk and in case of an accident you would have to pay the third party for the damages. As well as for vehicular loss without any coverage from the insurer.
Driving without motor insurance is illegal thus you must renew the insurance as quickly as a possible and quickest way is renewing the insurance online. Choose an insurance policy suitable for you. You can even switch the company and the features. This will allow you to compare various insurance and make an informed decision about the product.
Keeping the documents ready
After you have decided which policy you want to go for, all the documents must be kept handy and a call should be given to the insurer. The documents include a copy of the previous policy and registration certificate of the vehicle which is needed to renew the motor insurance. Additional details may also be required depending on the insurer. As fast as you provide these details faster would be the process of generation of insurance.
Expired car insurance renewal is not a difficult process. The process is easy with some basic understanding of the document and can be done online at home. Click here to renew expired car insurance easily.
Got some questions? You can call us on +91 22 48903009 regarding any queries while buying car insurance online.
*T&C apply. All the Toll Charges will be borne by Customer. Towing Services are free of charges for Garages present with in 25 kms from breakdown location. Towing to Garages beyond a radius of 25 km from breakdown location will be chargeable. Discount is applicable on OD premium. The premium quoted is subject to change in case any alteration is made while generating the final quotation for premium. For more details on risk factors, terms conditions, brochure, and exclusions, please read the policy wording carefully before concluding a sale. Details mentioned here are for the product- Reliance Private Car Package Policy.UIN: IRDAN103RP0010V02100001.