February 21, 2024

What You Should Know About Car Insurance As A First-Time Car Buyer

3 min read
car insurane
304 Views

Your first car always gives you a feeling of euphoria, freedom, and independence. In addition to the other choices, you must also decide on the type of car insurance you should purchase so that you avail of maximum car insurance benefits.

Technical Terminologies You Should Be Familiar With

  • No-Claim Bonus (NCB): If you renew your car insurance and did not file any claims during the previous policy year, you may receive this concession. Every year without a claim results in an extension of the NCB, typically given as a concession on the insurance premium (up to 50%). Make sure you are familiar with the process of how to renew car insurance. Claims are subject to terms and conditions set forth under the motor insurance policy.*
  • IDV (Insured Declared Value): This is how much your car is worth; in the first year after purchase, a new car is worth 95% of what it cost out of the showroom. This is also known as the sum insured and is the value your car will be guaranteed. As your car ages, depreciation sets in, and the insured amount decreases. This sum may be given to you if the insured car is totalled or suffers other damage. Claims are subject to terms and conditions set forth under the motor insurance
  • Deductibles:

There are two categories under deductibles:

Compulsory Deductible: The minimum amount of money that must be paid to start an insurance claim is known as the mandatory deductible.

Voluntary Deductible: The sum the policyholder is prepared to pay in the event of a calamity. This would result in the policyholders splitting the cost.

Different Car Insurance Policy Types

Third-Party Insurance:

The Motor Vehicles Act of 1988 makes third-party car insurance mandatory in India. It shields against liabilities from accidents impacting third parties or their property. Driving without this insurance is illegal and is subject to severe fines and potential imprisonment. Claims are subject to terms and conditions set forth under the motor insurance policy.

Own Damage Insurance: This policy covers potential damages to the insured vehicle (“own vehicle”), while third-party insurance covers the damage to the other party. Eligibility for this plan is contingent on having an active third-party car insurance policy. Claims are subject to terms and conditions set forth under the motor insurance policy.

Comprehensive Insurance: Comprehensive insurance covers both own vehicle damage and third-party liability, offering protection for both parties involved. This all-in-one policy includes coverage for theft, fire, disasters, and more under a single premium. Claims are subject to terms and conditions set forth under the motor insurance policy.

Finally, you must add to your Bajaj Allianz car insurance policy to expand its coverage.

How Do Add-Ons Work?

Add-ons are optional policy features that can be opted by paying an additional premium. This helps the policyholder seek coverage for the events that are otherwise excluded from the policy coverage. A variety of add-ons are available to achieve comprehensive coverage of the policy.

Zero Depreciation Add-On

The bumper-to-bumper or zero depreciation cover is another name for this. The coverage is above and beyond the IDV, so the insured will not be required to account for the car’s depreciation value or damages, replaced parts, etc. Claims are subject to terms and conditions set forth under the motor insurance policy. *

  • 24/7 Spot Assistance Coverage: If you become stranded in a remote area, your car insurance provider will immediately send help. There is 24-hour coverage here. Claims are subject to terms and conditions set forth under the motor insurance policy. *
  • Engine Protector: Changing the engine in your car can be expensive, but there is an add-on that makes it easier for you to handle this without being financially stressed. Claims are subject to terms and conditions set forth under the motor insurance *

Subscribe to Bajaj Allianz General Insurance YouTube Channel here!

*Standard T&C Apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

Leave a Reply

Your email address will not be published. Required fields are marked *