Tag Archive | "Car Insurance"

how to transfer old insurance to your new car?

  • Easypolicy
  • 13 May 2014

When you replace your old car with a new, you can either buy a fresh car insurance Policy or substitute your new vehicle for the old vehicle under the existing policy for the balance Term of the existing policy. You would need to buy a new car insurance policy if you either intend to retain the old car along with the new car or if you transfer the existing policy to the new owner of your old car.

What about the No Claim Bonus on my existing policy

The no-claim bonus is not provided on the vehicle but is provided to the driver of the vehicle. While policy on a vehicle can be transferred among people but the no-claim bonus is exclusive to the policy owner. Hence, if you are entitled to a no-claim bonus for the old car insurance policy the same can be transferred to the new car insurance policy you would buy for your new vehicle.

There are two scenarios when it comes to retaining the no-claim bonus.

1) If you intend to transfer the existing policy on your old car to the new owner, then while execut  ing the policy transfer do make it a point to get a no-claim certificate from the insurance company. The No-claim certificate can be used to get a discount on the policy insurance Premium on your new car.

2) You can retain the existing policy on you old car and not transfer it to the new owner. Once you have purchased the new car you can substitute the old car with the new car and either pay or get a refund for the difference in premium. The premium differential would largely depend on the Insurance Declared Value (IDV) of the new car which would depend on the value of the car that you purchased.
 Validity of No-claim certificate

If you transfer your existing policy and get a no-claim certificate it is important that you use the certificate for claiming a discount on the insurance policy on your new car within 3 years of getting the certificate. Besides, the no-claim certificate can be used only if the new vehicle that you purchase belongs to the same category as old one. You cannot transfer a no-claim bonus earned on a policy on a car to a policy you buy for owning a commercial vehicle like bus.

understanding major add on covers in car insurance

  • Easypolicy
  • 16 Jan 2014

It is quite common to see people buying car insurance Policy in a rush without even bothering to know if the policy adequately covers all the potential risks or not. With Inflation hovering around high single digit to low double digit, people’s ability to save from their income is heavily compromised. In such a scenario, if you have to spend a big sum on your car because of a loss or a damage which your current insurance policy does not cover, your financial planning can go for a toss.

In order to avoid such a situation, individuals should opt for a policy that provides them with add-on covers apart from the basic motor insurance cover.

Some important add on cover that you should look to get included in your motor car policy have been discussed below.

1) Zero Depreciation - People are usually shocked to learn that their car insurance provider will not entirely reimburse the cost of repair for the car damage for which they have sought a claim. This is due to the fact that insurance companies pay for a part after deducting the cost of depreciation on the part. However, if you have policy that offers zero depreciation benefit, you could get 100% of the cost spent on replacement of parts reimbursed. This benefit is usually restricted to vehicles which are not older than 5 years.

2) NCB Retention - In a basic car insurance cover, No Claim Bonus is provided to those who do not file for a single claim during the year. The No claim bonus can be accumulated over years to get a 50% discount on the Premium amount. The Risk with a No Claim Bonus benefit is that even if you file for a single claim you receive no bonus at all. To avoid such a situation, you can opt for NCB retention, under which if the claim filed is below a certain amount, you will still be allowed to retain a given percentage of the NCB.

3) Medical Expenses Cover - If your car meets with an accident, the risk is not just limited to the car, but extends to the passenger in the car. Hence, insurance policies offer medical expenses cover, which reimburse medical expense on the treatment of passengers. The Reimbursement is subject to a limit.

4) Personal Accident Cover - Your normal life insurance Term plan will not cover you for an accidental death or permanent disability. With car insurance, you can opt to buy a personal accident cover which would provide a lump sum benefit in the event of permanent disability or partial permanent disability or accidental death.

5) Daily Cash Allowance: Those living on a tight budget, would find this add on particularly important. It provides the Insured an allowance to cover the transportation costs, in case the car has to stay in the garage for a couple of days for repair.

Compare Car Insurance Online

These days, it is possible to do an online car insurance comparison. So, take time to understand the features of different policies and their costs and then make a decision on which of these add on covers would particularly make sense for you.

deciding factors for your future car insurance premium

  • Easypolicy
  • 16 Jan 2014

A car insurance Policy covers the Risk from two perspectives, one is third party liability and the other is own damage coverage. Third Party Liability Insurance would protect you against any liability that may arise due to damage caused to others during an accident. If you own a car, taking insurance Coverage for third party liability is mandatory under law. The own damage coverage is optional and there are many factors that would govern the amount of Premium that you need to pay. The cost of third party coverage is nominal when compared to the cost of insurance for own damage. It is advisable that you buy a comprehensive motor insurance which provides protection for own damage as well as third party. 

Third Party Liability Premium

The value of third party liability insurance coverage would largely depend on the size of your car as determined by the cubic capacity of the engine. No matter how old or new your car may be, it stands to be solely determined by the engine size. 

Own Damage Cover Premium

When you buy a comprehensive motor insurance policy, the larger proportion of the premium that you would pay is attributable to cover for own damage. The most important factor that decides the premium for own damage is the insurance declared value of your car, popularly knows as IDV. IDV largely depends on two things - the purchase value of your car and the age of the car. The purchase value is the ex-showroom price and IDV is calculated by deducting the accumulated Depreciation from the purchase value. The amount of depreciation that one has to account for has to be in line with the schedule provided by the Indian Motor Tariff act. The depreciation schedule fixes the depreciation rates on the age of the car.

Geographical Zone

The premium that you pay also depends on where you drive your car or in other words where you basically stay. India is divided into two zones –

1) Zone A - Covers cities like Ahmedabad, Bengaluru, Delhi, Mumbai, Kolkata, Hyderabad and Pune.

2) Zone B - Rest of India.

Cars belonging to Zone A will carry a higher premium than cars belonging to Zone B.

Number of Claims and Claim Value

The premium that you would have to pay is likely to be higher if you have made a claim in the previous year, as against if you have not made a claim.

Additional Protection

There are varieties of Riders that insurance companies offer and if you buy these riders, your insurance premium is likely to go up. The optional features that make your insurance expensive are: –
1) Coverage for lost key replacement

2) 24 x 7 spot assistance

3) Vehicle replacement advantage

4) Engine protection

5) Get full Reimbursement on depreciated parts at the time of claim settlement

6) Get reimbursement for repairing costs of items like tyres and batteries, which are normally not covered under a policy

Compare Car Insurance Online

A prudent way to buy insurance is to compare car insurance policies offered by different companies over insurance comparison websites such as easypolicy.com. This way you can choose the best insurance policy that offers you desired coverage at the lowest premium charges. Once you have zeroed in a policy you can buy online car insurance from the convenience of your home.