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Living in Delhi is blissful, yet the vibrant city comes with its transportation issues, requiring you to purchase your car. Now, whether you are new at car purchasing or an owner of multiple vehicles, choosing your vehicle can be an exhilarating feeling with one tiny confusion- car insurance. Navigating through the various ups and downs of understanding and selecting car insurance, can be fascinating yet taxing- one sharp turn can cause you to lose your money, time, and peace. Take this as a guidebook towards understanding your car insurance journey.

Importance of Car Insurance

The freedom of owning one’s car comes with its set of responsibilities, where you need assistance. Car Insurance serves that purpose through:

  • Mandatory Protection: Indian law mandates having at least third-party liability (TP) insurance for all vehicles for financial protection in the case of accidents, injury, or property damage of the third party. Without it, you could be held liable for hefty compensation costs.
  • Peace of Mind: Life is unpredictable, with curveballs in the form of accidents, theft, and natural disasters. Comprehensive car insurance is a safety net, maintaining your peace of mind by covering a wider range of situations beyond TP.
  • Financial Security: Car repairs are an expensive occurrence, and having comprehensive insurance can lessen the dent in your pocket while maintaining the quality of service provided.
  • Customisable Coverage: Car insurance doesn’t follow ancient principles, in the modern era. Your car insurance add-on covers can include engine protection, zero depreciation (protects against depreciation value on your car), and roadside assistance, ensuring you’re prepared for various scenarios.
  • Faster Repairs: Did you know? Many insurance companies have a network of cashless garages in Delhi. This provides you the liberty of getting your car repaired without upfront payments, simplifying the process and minimising downtime.

Understanding the Pillars of Car Insurance in India

Car insurance sounds simple, right? While in the broader spectrum, it is, what you need to keep in mind are the variances in car insurance, keeping the Indian law and legislation at the front:

  • Third-Party Liability (TP) Insurance: This is mandatory coverage, shielding you from major financial losses occurring due to injuries or damage caused to a third party’s vehicle, or property. Unfortunately, it doesn’t provide any protection from damages occurring to your car.
  • Comprehensive Car Insurance: This powerhouse policy goes beyond the basics of TP insurance. It typically includes:
    • Own Damage Cover: This protects your car from accidents, theft, fire, natural disasters, riots, and vandalism.
    • Personal Accident Cover: This can be an addition to your car insurance plan, providing financial assistance in case you or your co-passengers sustain minor or major injuries during an accident.
    • Add-on Covers: These can be added to your existing car insurance to enhance it. You can opt for engine protection cover, zero depreciation cover, and roadside assistance.

The beauty of India-based car insurance is that you can tailor your plan to suit your requirements, evolving from vehicle to vehicle.

The Price Tag of Protection: Factors Affecting Your Car Insurance Premium

Everything depends upon circumstances as well as variables that play an important role in determining the outcome. The premium you pay for your car insurance policy is influenced by these key factors:

Your Car:

Your insurance is an extension of your car and naturally, its Insured Declared Value, Age, and Engine Capacity form major deciding points. A higher IDV can help you get a higher premium, while larger engines can lead to a steeper premium. Additionally, with age, your car’s value decreases, impacting the premium amount

Your Driving Record:

How you drive is a mark of your car’s upkeep and propensity to mitigate situations like accidents and threats. Your skill set can save or cost you- divers with a clean record and a history of safe driving are often eligible for attractive discounts.

Your Location:

In certain areas of Delhi, traffic congestion and theft are common occurrences. Due to this factor, insurance companies may increase rates slightly for auto insurance in those regions. It’s similar to typical insurance where the cost increases slightly as the risk increases.

Discovering a reliable insurance companion in Delhi

The market is teeming with options for car insurance. Selecting the right insurance that all fits your requirements can be an uphill climb. However, do not be concerned, as the following tips will serve as a starting point:

  • Seek a company with a reputable name and sound financial standing for handling claims effectively and fairly. You need someone reliable to support you during your most crucial moments.
  • Many garages in Delhi now offer cashless payment options, providing increased convenience for customers. No need for upfront payments and faster repairs equals a double victory!
  • Supportive and attentive customer service is crucial. When you have an inquiry or require assistance, you seek a company that is easily accessible and efficient in resolving issues.
  • Think about companies that have easy-to-use websites and mobile apps. These can simplify the process of managing your policy and submitting claims. End the hassle of dealing with paperwork!

Two Options for Coverage: Agent or Internet

Two primary methods to obtain car insurance in Delhi are available.

  • Agent at Your Service: Insurance agents are available to clarify various policy choices, review quotes from different companies, and assist with completing the application. This individualised gesture can be particularly beneficial for individuals who are purchasing a car for the first time.
  • Self-service on the Internet: Many insurance providers offer convenient online platforms where customers can compare car insurance quotes, tailor their policies, and make purchases without the need for a middleman. This choice is convenient, frequently quicker, and allows you to navigate through.

Purchase of Insurance: Documents you need

Ready to buy your car insurance? Keep these handy:

  • Use Registration Certification
  • Previous Year Policy Copy
  • Pan card and Aadhar card for CKYC verification

Choosing wisely: Paying attention to the details.

Post receiving quotes from various companies, make sure to carefully compare them before making a decision. Here are some things to consider:

  • What’s included
  • What is not included
  • Settlement ratio of claims
  • Customer feedback

Conclusion: Confidence on the Road

Remember, the car insurance you choose is an investment that protects your car, your finances, and your peace of mind. So, choose your policy wisely and drive safely!

If you have any further questions, please call at 1800 266 9693 or email us at support@elephant.in to speak to our experts! Go to Elephant.in to obtain the best car insurance!

*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. You are recommended to obtain specific professional advice from before you take any/refrain from any action. Tax benefits are subject to changes in tax laws. Please contact your tax consultant for an exact calculation of your tax liabilities.| EL/BLOGS/24-25/07

Alliance Insurance Brokers Pvt. Ltd.
8th Floor, Gold Crest, 10th Road, Juhu, Vile Parle (W), Mumbai 400 049, India
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CIN: U67200MH2003PTC141621
IRDAI Registration No.: 217
Valid from : 13/10/2021 to 12/10/2024
Category : Composite Broker
Principal Officer Name: Mr. S. V. Thakkar
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