Car Insurance Blogs

Even though purchasing a new car can be a thrilling experience, it is important not to overlook one crucial aspect: car insurance. To protect your investment from any unpredictable situations, it is essential to know about the intricacies of car insurance. Here is a simple guide to assist in understanding car insurance while buying a new vehicle.

Get the Basics Right

Car insurance is an agreement between an individual and an insurance company that provides insurance coverage for vehicles. On receiving the premium amount, the insurance company will cover specific expenses in case of damage, theft, or accidents involving your car.

In India, it is required by law to have third-party car insurance. It includes payments for harm or injuries to others, excluding damage to your personal vehicle. Choosing full coverage insurance is advised because it includes protection for both third-party losses and any damages to your own car.

Types of Car Insurance

• Comprehensive Insurance:

Both third-party claims and damages to your vehicle are covered. While more expensive, the extensive protection offered can provide peace of mind.

• 3rd Party Insurance:

As the minimum required by law, this covers damages to others but leaves your vehicle unprotected. Although cheaper, this option could expose you to additional costs if the vehicle sustains damage.

What Influences Your Premium?

• Car Make and Model:

Higher premiums are typically attracted by high-end vehicles due to increased repair costs.

• Age of the Car:

Older cars generally come with lower premiums because of reduced market value.

• Location:

Living in metropolitan areas can lead to higher premiums due to greater risks of accidents or theft.

• Driving History:

Lower premiums can be earned by maintaining a clean driving record, as it suggests a lower risk to insurers.

• Coverage Type:

  Extensive protection is provided when one acquires a comprehensive car insurance, even though it costs more.

Also Read: Understanding Different Types of Car Insurance Coverage

The No Claim Bonus (NCB)

The No Claim Bonus (NCB) serves as an incentive for drivers who exhibit responsible behavior on the road. If there are no claims filed within the policy year, policyholders can receive a discount of up to 50% on their own damage premium for the next year. This helps to save money and promote safer driving behaviors.

Understanding Insured Declared Value (IDV)

The maximum amount that the insurance company will pay out in the event that the vehicle is declared stolen, or a total loss is the IDV, which represents the car’s present value. Better coverage is provided by a higher insured stated value; nevertheless, the premium is usually higher. It is critical to strike the ideal balance between scope and expense.

Exploring Add-ons and Riders

• Zero Depreciation Cover:

Full compensation is provided without accounting for depreciation, making this a smart choice for new car owners.

• Engine Protection:

Covers engine damage from specific issues like waterlogging—a real concern in some areas.

• Roadside Assistance:

  Provides peace of mind if the vehicle breaks down.

Choosing the Right Insurance

• Compare Policies:

You will come across a good car insurance policy after scouting through different plans and their quotes both online and offline.

• Assess Premium vs. Coverage:

Ensure the policy meets protection needs, rather than simply opting for the cheapest option.

• Check Claim Settlement Ratios:

This indicates how effectively an insurer handles claims—an essential factor in the decision.

• Read the Fine Print:

Comprehend what is covered and not covered to prevent unexpected surprises in the future.

• Consider Your Driving Patterns:

Regular drivers or individuals in high-risk locations could see greater advantages with comprehensive insurance.

Insuring Your New Car

Though dealers commonly provide insurance at the time of sale, it may not always be the most advantageous option. Make sure to compare quotes from different providers as many of them have fast online quotes available for a more efficient evaluation of options.

Don’t Forget Your NCB Transfer

When upgrading from an old car, transferring the No Claim Bonus to the new policy can lead to significant savings. Insurers should be notified about the NCB transfer during the purchase process.

Navigating the Claims Process

1. Insurers should be notified immediately after an incident.
2. A police report should be filed if needed, especially for theft or major accidents.
3. A claim form should be submitted to the insurance company.
4. Necessary documents, such as a driving license and car registration, must be provided.
5. The insurer should inspect the car to assess the damage.

Conclusion

Getting the proper insurance for a new car is just as important as buying the car itself. By understanding the fundamentals, conducting comparisons, and making knowledgeable choices, both vehicle and financial protection can be guaranteed. Always aim for a balance between coverage and cost to find the ideal policy.

Reach out at 1800 266 9693, email support@elephant.in, or visit Elephant.in to explore car insurance options!
*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/24-25/18

Monsoons on Indian roads can be particularly harsh on cars, with flooded streets, potholes concealed beneath water, and impaired vision posing significant risks of damage. While regular car insurance covers basic damages, the monsoon often necessitates more comprehensive coverage. This is where additional insurance coverage becomes crucial. Add-ons expand the coverage given by the regular insurance policy to offer additional protection from specified risks. In this article, we shall outline some of the different types of add-on covers that help you protect your vehicle during the rainy season.

Understanding Add-On Insurance Covers

An add-on is an additional cover that you buy over and above your basic car insurance policy for extra protection in multiple scenarios. Here are some must have car insurance add-ons that can prove to be extremely helpful during the monsoons:

• Engine Protection Cover
• Zero Depreciation Cover
• Roadside Assistance Cover
• Return to Invoice Cover
• Consumables Cover
• Hydrostatic Lock Cover

• Engine Protection Cover

Your car’s engine is its heart, and it’s particularly vulnerable to waterlogging. An engine protection add-on would help to reduce the costs of repair or replacement in case your vehicle’s engine gets damaged due to water. Such an add-on coverage feature is critical, given that the standard insurance policies do not provide coverage if the engine gets damaged due to water seepage.

Benefits of Engine Protection Cover:

• Covers the cost of repair or replacement on any damage arising from water collection to the engine.
• Provides you with peace of mind in times of heavy rains and floods.
• Prevents expensive engine repairs.

• Zero Depreciation Cover

It also goes by the name of bumper-to-bumper car insurance coverage. This particular coverage will ensure you get the full claim value sans any depreciation deduction. During monsoons, you can always expect to experience slipperiness of the roads, minor accidents and damages, and this is where this cover will come in the most handy. With this, you will not need to pay for a part replacement out of your pocket as the insurer will take care of it.

Benefits of Zero Depreciation Cover:

• The total claim amount without deduction of depreciation.
• Ideal for new vehicles and luxury models.
• Covers the cost of replacing damaged items without taking into account their devaluation.

Also Read: All You Need To Know About Bumper To Bumper Car Insurance

• Roadside Assistance Cover

Breakdowns can be nerve-wracking, especially in the rain. But with your roadside assistance cover, help is just a call away! From towing to minor repairs, you can get back on the road in absolutely no time. Roadside assistance coverage is a saviour, it gives you peace of mind, offering towing, emergency repairs, and battery jump-starting. It can also provide lodging for you if you are a long way from home.

Advantages of Roadside Assistance Cover:

• Immediate help is available if your car breaks down.
• Towing services to the nearest garage.
• Peace of mind in emergencies.

• Return to Invoice Cover

If your car is beyond repair or is stolen, a standard insurance policy will only pay out the present market value, which may be considerably less than what you paid for it. A return-to-invoice cover bridges this gap by paying the original invoice value of the car along with road tax and registration fees.

Benefits of Return to Invoice Cover:

• Full compensation for the car’s invoice value.
• Covers the gap between market and invoice values.
• Best used for new vehicles, providing more financial protection.

• Consumables Cover

In the course of repairing, minor parts like nuts, bolts, engine oil, brake oil, and such are replaced. The cost of such expenses can really add up, and typical insurance doesn’t include them in coverage. A consumables policy takes care of those costs so you don’t have to reach into your pocket.

Benefits of Consumables Cover:

• Pays the cost of consumables replaced at the time of repair.
• Reduces out-of-pocket expenses.
• Offers complete protection at the time of repair.

How to Choose the Right Car Insurance Add-Ons

The right selection of add-ons depends on multiple factors, such as the age of your car, the way you drive it, and the monsoon conditions that prevail in your area.

Here are some tips to help you choose the right Car Insurance add-ons:

1.Assess Your Needs:

Think of the specific threats you will be facing through the monsoon. If you stay in a flood-prone area, the must-have features include engine protection and roadside assistance cover

2. Assess the Age of Your Car:

New cars benefit more from zero-depreciation and return-to-invoice coverage.

3. Keep in Mind Your Budget:

While add-ons provide you with extra coverage, they are capable of escalating your costs as well. So choose the best value for your needs.

4. The Devil Is in the Details:

Be aware of the terms and conditions of every add-on to get an idea about the coverage.

Conclusion

Though an incredible season, monsoons can, at times, prove to be a little harsh on your car. But the right insurance protection can save your day and your car, too! Take time to study and learn about different types of add-on covers that can prove to be very beneficial in the long run. Engine protection, zero depreciation, roadside assistance, return to invoice, consumables,  are some of them that can help protect your car.

Call 1800 266 9693 or email us at support@elephant.in if you have any questions. Visit Elephant.in for the best car insurance plans!

*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/24-25/13

As a car owner, you must ensure your vehicle is well-maintained, and you follow traffic rules and drive carefully. Sometimes, even if you take all necessary measures, accidents tend to occur due to mechanical problems, damaged tyres or natural calamities like floods and earthquakes and poor road conditions to name few. Car insurance is important to cover damage costs during such incidents.

We will look at some of the numerous car insurance plans available today to help you make the best financial decision.

Importance of Car Insurance

The roads in India range from quiet country roads to busy urban ones and well-kept highways. Accidents can happen whenever and in any area. Car insurance fills in as a financial security, safeguarding you from the obligation of paying for harm, medical services costs or lawful commitments coming about because of accidents.

Car insurance can help you in the following ways:

• Financial stability:

  For example, if an accident in your car takes place, this coverage will be activated, and it will cater for the maintenance and replacement expenses incurred.

• Third-party liability coverage:

  In situations where personal injuries to third parties are sustained or their properties are damaged, this policy stands in for the financial liabilities arising out of any mishap occurred due to third party liability.

 Also Read: Useful Tips to Consider When Buying Insurance for Your New Car

Types of Car Insurance Coverages and Add-on

Insurance coverage relates to the different monetary assurances that are presented for your car. Notwithstanding standard inclusion, you have the choice to choose different extra elements to help the degree of security given by the approaches. First, we’ll discuss the five types of car insurance coverage available in India:

• Third-Party Liability Only Cover:

With this vehicle insurance contract, you will get the following benefits:

• Costs for fixing or replacing the 3rd party’s vehicle that was harmed.
• Costs brought about for hospitalisation and clinical consideration for the 3rd party involved.
• Legal liabilities brought arising out of bodily injury or death of third part, including passengers and pedestrians due to an accident caused by the insured vehicle. Having third-party liability insurance is the minimum legal requirement under the Motor Vehicles Act of 1988. All vehicle owners need to have it in order to avoid any legal obligations.

• Collision Damage or Own Damage (OD) Cover:

The insurance company compensates for the repair or restoration of the damaged car. These rates commonly depend on the RTO)

Also Read: How to Select Car Insurance Tailored to Your Needs!

• Personal Accident Cover:

If in an accident, the driver is injured (or the owner of the car), this add-on cover comes into play. It covers the cost of hospitalisation and several other medical expenses.

• Zero Depreciation Insurance:

In India, this kind of coverage is frequently offered as an additional option with car insurance plans. Imagine that you need new parts for your wrecked car. When processing claims, the insurance company will consider the components’ decreased value. You will receive the full claim amount if you have zero depreciation coverage, as there is no expenditure depreciation included.

• Comprehensive Car Insurance Coverage:

The Comprehensive Car Insurance gives the most extensive assurance by covering your vehicle against any man-made activities such as robbery/theft/vandalism and natural calamities such as floods, earthquakes. It can also be upgraded with the help of add-on policies which provide additional benefits along with the fundamental protection that the plan provides.

Conclusion

Now that you are aware of the many kinds of car insurance that are out there, evaluate your demands and carefully consider your budget. Compare the various types of coverages and their premium costs choose the one that is perfectly apt for your needs and traverse the roads with confidence!

Contact our experts by calling 1800 266 9693 or emailing support@elephant.in if you have any questions. Visit Elephant.in for the best car insurance plans!

*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/24-25/12

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

Love the hustle and bustle of Mumbai? But what about its traffic? As a car owner, it is clear that navigating the city’s traffic or challenges related to it is no small feat. Accidents and unforeseen circumstances may lead to expensive repairs, medical bills, and legal fees. Purchasing car insurance is one way to mitigate all of this. The Motor Vehicle Act of 1988 mandates vehicle insurance for all motor vehicles in the country.

Through this blog, we will help you get a better understanding of car insurance in Mumbai so that you can make an informed choice and drive down the buzzing roads of Mumbai in peace.

Why Purchase a Car Insurance in Mumbai?

Considering the current road circumstances and the high volume of traffic on the streets of Mumbai, it is crucial to have comprehensive car insurance coverage. The benefits are many:

• It offers complete compensation if your car is stolen.
• It shields your car from calamities such as floods and earthquakes.
• Reparation is paid for losses caused by terrorists, vandals, and rioters.
• It offers financial assistance where the owner or driver of the car meets with an accident and gets injured or killed.

Things to Consider When Buying Car Insurance in Mumbai

There are some factors you need to consider before purchasing car insurance. They are as follows:

• Choose an insurer known for prompt settlement of claims.
• Evaluate all available options under coverage. Check if there are extra features included in policies like roadside assistance, engine protection no depreciation element, etc.
• Compare insurance prices from different companies to balance between cost and coverage.
• Your requirements must be analyzed, then you should select additional covers for your policy accordingly. These additional covers add extra protection beyond what is already covered by your basic coverage.
• Check if the insurer has a competitive NCB program or not. It is the discount on premiums given by the insurer to the policyholder who has had no claims throughout the insurance period.
• Carefully read the policy terms and conditions to comprehend the conditions, exclusions, and restrictions and avoid surprises during claim settlement.

Also Read: Useful Tips to Consider When Buying Insurance for Your New Car

Steps to Purchase Car Insurance in Mumbai

Buying auto insurance in Mumbai? Follow these steps:

1. Research and Compare:

   Start an inquiry about different insurers and their policies.

2. Choosing the Right Coverage:

   Select the most appropriate cover depending on your personal needs.

3. Getting Quotes:

   Request for quotes from various insurers. Let them be armed with specific details and they shall determine a precise quote for you.

4. Evaluating Add-Ons:

   Your requirements should be evaluated and included in your comprehensive insurance plan.

5. Purchasing the Policy:

   When you have selected an ideal policy, there is an option of buying it online or offline. For avoidance of problems during claims processing, accurate data must be provided.

6. Policy Documentation:

   The said policy documents will be received once the purchase has been made. It must be carefully reviewed and kept somewhere it will not be overlooked. It also helps to have a paper copy on hand for easy reference, for instance, while using the digital version.

Common Mistakes to Avoid

Being aware of and avoiding the following mistakes may make car insurance purchases in Mumbai easier:

• Not obtaining proper insurance: To protect yourself against potential losses, ensure that you have the proper coverage, tailored to your specific requirements. Choosing a coverage plan that does not fit your needs to save money on premiums is not advisable.
• Not Considering Policy Exclusions: Being aware of what isn’t covered is crucial since every insurance has specific exclusions. This helps in preventing your claim from being denied.
• Avoiding Timely Renewal: Renewing your insurance may be a very important aspect that has to be done to avoid losing insurance coverage. Driving a car without appropriate insurance makes one prone to paying huge amounts of cash and or receiving fines.
• Ignoring Add-Ons: Though add-ons can slightly contribute to the rise in insurance costs, they are significant to have additional safety. As with anything, their benefits have to be weighed for one to decide on whether to take help or not.
• Not Utilising No Claim Bonus: With a clean driving record or no past claims, one should ensure they opt for the No Claim Bonus (NCB) to reduce the insurance premiums.

Also Read: How to Lower Car Insurance Premiums

Conclusion

Be mindful of the above factors when buying car insurance in Mumbai. Remember, obtaining comprehensive car coverage isn’t just vital but also a smart choice because of the city’s high traffic and high accident rate. By making an informed choice you can protect your car from unexpected disasters.

Call 1800 266 9693 to learn more about the different types of car insurance we offer, or send an email to support@elephant.in to speak to our experts! Additionally, you can 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/24-25/06

Choosing a car insurance that is perfectly fit to your needs can be a difficult task for many as there are so many options in the market. Comprehensive car insurance and bumper-to-bumper car insurance are the two most popular insurance policies in India. In this blog post, we will explore the key differences between the two insurance policies so that you make an informed decision while you are out in the market purchasing insurance.

What is a Comprehensive Car Insurance?

Comprehensive insurance can be considered as a huge shield that covers various aspects. It goes beyond the basic protection and offers protection against:

• Accidents: Met with an accident? This type of insurance covers the cost of repairs you may need after an accident.
• Theft: It repays you for the vehicle’s insured declared value () if it gets stolen.
• Fire: All the damages that may be caused to your car due to a fire breakout will be covered under this insurance policy
• Natural Disasters: It assists you by covering the cost of damages caused by disasters like floods and earthquakes.
• Riots & Strikes: Damages caused to your car due to these activities are also covered under this insurance.

In addition, you can tweak your insurance policy! Add-on covers are offered by many insurance providers:

• Engine Protect: In case your engine breaks down, this cover helps in covering for the costs of repairs or replacements.
• Return to Invoice: This cover reduces the gap between the vehicle’s current value and its on-road cost during claim settlement.
• Personal Accident Cover (PAC): In case of an accident where either you or the passengers in your car need financial assistance to meet the costs of injuries/hospitalisation, this cover comes to the rescue.

Here is the catch: When parts are replaced after a claim, depreciation (reduction in value due to age) is applied. This implies you might need to pay a portion of the repair and replacement costs from your hand. Also, your car insurance doesn’t cover the wear and tear of the car, electrical/mechanical breakdowns because of negligence, or

Bumper-to-Bumper Insurance: An Upgraded Protection

A supercharged version of comprehensive car insurance is called bumper-to-bumper car insurance. It offers every one of the advantages of comprehensive insurance, however with a significant advantage:

• No Depreciation on Parts: You get the full cost of repairs or replacements for most car parts after an accident, no matter what their age. You will not have to shell out money from your pocket.
• Enhanced Coverage: When compared to comprehensive car insurance, bumper-to-bumper car insurance provides broader coverage. This includes coverage for consumables like ointments and filters utilised during repairs.

Sounds perfect, right? Well, almost. Here are some considerations:

• Higher Premiums: Added security comes at a price. The insurance premiums for bumper-to-bumper car insurance are higher when compared to comprehensive car insurance.
• Renewal Restrictions: Some insurance providers put limits on who can get bumper-to-bumper car insurance, particularly for older cars. Check the renewal terms prior to picking this option.

Choosing Your Champion: Comprehensive vs. Bumper-to-Bumper

Depending on your car’s age and your tolerance of risk, the best choice will differ. Let’s break it down:

• New Cars (Up to 3 Years Old): Depreciation is negligible for new cars. An effective choice for such cars will be opting for comprehensive insurance with add-ons like engine protection and return to the invoice.
• Pre-Owned Cars (3 to 5 Years Old): Depreciation is considered for these cars. Opting for comprehensive insurance with a zero depreciation add-on for parts like engines and headlights is advisable.
• Older Cars (Above 5 Years Old): Depreciation of value can be critical for older cars. As the complete repair costs are covered under a bumper to bumper car insurance, it becomes a more alluring choice for car owners

Conclusion

To maintain your peace of mind and to safeguard your prized possession: your car, it is important that you choose the perfect insurance protection that suits your needs. Once you comprehend the various coverage options and their requirements along with their differences, you can make a well-informed decision and choose the perfect insurance plan that is suited to your needs.

*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/24-25/02

When an extra cover of zero depreciation is purchased alongside comprehensive insurance, it is referred to as bumper-to-bumper car insurance. The cover ensures that the policyholder is repaid with no deductions that happen because of depreciation in case of an accident. This blog will explore the details of this protection so you are informed before settling on a protection plan that is good for your requirements.

What is Bumper-to-Bumper Car Insurance?

It gives complete financial protection to your car and is an appealing choice for car owners when compared with standard car insurance. A normal comprehensive policy considers depreciation during the process of claims which directly impacts your claim amount. While a bumper-to-bumper car insurance, the policyholder gets the full claim amount as it doesn’t consider depreciation.

What is Covered Under a Bumper-to-Bumper Car Insurance?

In bumper-to-bumper car insurance, protection for various parts of your car is given. It doesn’t take into account deductions due to depreciation and totally compensates for the damages caused. This means that if you meet with an accident, you will be compensated completely, with no deductions.

The parts that are covered are as follows:

What are the Exclusions in Bumper-to-Bumper Car Insurance?

Bumper-to-bumper car insurance gives total coverage but there are certain exclusions. They are as follows:

How to Purchase a Bumper-to-Bumper Car Insurance?

While buying or renewing a comprehensive insurance policy, bumper-to-bumper insurance can be purchased with it. To get zero depreciation coverage, you need to pick this add-on while customising your insurance plan.

Tips to Purchase A Bumper-to-Bumper Car Insurance

Car owners need to consider these things before buying bumper-to-bumper car insurance. They are as per the following:

• Compare quotes given by various insurance providers to track down the best fit for your requirements.
• Ensure the insurance provider you choose is trustworthy and has a decent claim settlement record.
• Review the agreements of the insurance policy carefully to understand what is covered and what are the exclusions under the policy.

Factors Affecting Premiums for Bumper-to-Bumper Car Insurance

The premiums are affected by things like the IDV (Insured Declared Value) of your car, your driving record, your age, the make and model of your car, and your location. Your premiums can be brought down by:

• Increasing your voluntary deductible
• Maintaining a clean driving record
• Installing anti-theft devices
• Renewing your policy promptly
• Avoiding frequent claims

Conclusion

For Indian car owners, it is ideal to purchase bumper-to-bumper car insurance in the present day and age as the expenses of owning a car are rising. Alongside coverage, it additionally gives genuine peace of mind to the car owner. You can safeguard your car by choosing smartly assuming you understand what the policy covers, the premiums you need to pay, and its advantages. It stays the most ideal choice for safeguarding your car as it gives total coverage which ensures financial well-being.

Want to get car insurance tailored to your needs? Reach out to us at support@elephant.in or on our toll-free support number- 1800 266 9693, to talk to our experts! We will help you acquire a car insurance that is customised to your needs!

*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/24-25/01

In the intricate world of car insurance, understanding the nuances of premiums and coverage is essential for every vehicle owner. One question that often arises is– What is the basic Own Damage cover in car insurance? In this in-depth guide, we’ll dissect this crucial element, shedding light on its intricacies and emphasising why it stands as a cornerstone in the foundation of your car insurance policy.

The Importance of Own Damage Cover

At its essence, the Own Damage cover serves as a financial safeguard for your vehicle. It provides coverage for impairments to your vehicle against a pool of potential risks. Be it a minor fender bender, the aftermath of a severe hailstorm, or theft, this premium acts as a safety net, assuring your financial burden is dealt with appropriately in case of incidental damages.

Recognising that the basic Own Damage cover is not a one-size-fits-all concept is imperative. It ensures that financial assistance is provided for repairs or replacements, leaving no room for expenses. OD insurance can be tailored as it is flexible and one can add additional coverage options like zero depreciation, engine protection, and roadside assistance.

Components of Own Damage Cover Premiums

Diving deeper into the concept of basic Own Damage premium, it’s crucial to grasp the distinct components that collectively determine the amount you pay for coverage. The components are as follows:

• Car’s Age
• Driving Habits
• Car’s Make and Model
• Location of Registration
• Insured Declared Value (IDV)

The Benefits of Own Damage Cover

When looking for car insurance, you can choose between liability or comprehensive insurance. However, the big disadvantage of buying third-party insurance is that it does not cover the vehicle itself. Third-party liability insurance only covers the legal liability of the owner of the vehicle in the event of an accident, including liability for injury, death or damage to third parties.

On the other hand, comprehensive insurance includes both liability insurance and the Own Damage Cover, which protects the car against damage, theft, vandalism, natural disasters and man-made accidents such as riots and the car owner/driver. In addition, you can further enhance a comprehensive plan with additional add-on options that you can purchase from the insurance company.

Strategies for Reducing Own Damage Cover Premium

Now that we’ve analysed the multifaceted nature of the Own Damage Cover, let’s examine actionable strategies for handling and optimising this crucial aspect of your car insurance.

• Increase Voluntary Deductibles: One way to tailor your OD car insurance is by selecting the correct voluntary deductibles. In the event of a claim, you agree to pay a portion of the repair or replacement cost, and an additional payment is made by the insurer called the deductible. Choosing to pay a higher deductible may lower premium costs, but you will have to give out more in the event of a claim.
• Insured Declared Value (IDV): Choose an IDV that is equivalent to the actual value of the car as a higher IDV leads to a higher premium whereas a lower IDV may not provide sufficient cover.
• Transfer of No-Claim Bonus (NCB): If you previously had OD or Comprehensive Car insurance, be sure to transfer your NCB to your current policy to receive the accrued discount on the new policy.
• Choosing plans based on usage: Pay-as-you-drive plans are a kind of vehicle insurance that tailors your premium to the frequency of your driving. You pay a base rate and extra charges based on the distance you drive.

By enforcing these strategies, you actively manage your Own Damage Cover premium while receiving comprehensive coverage and maximising cost-effectiveness.

Conclusion

As we conclude this extensive exploration into the realm of Own Damage premium, it’s evident that this is more than just a technical aspect of car insurance—it’s a fundamental element that directly influences the longevity and financial security of your vehicle. Visit Elephant.in to learn more about our insurance options, get free quotes, and secure the peace of mind you deserve!

Email us at support@elephant.in or call us on our toll-free support number- 1800 266 9693 to get in touch with our experts to solve any further queries!
*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/23-24/06

Third-party (TP) Premium is a complex term in the diverse landscape of car insurance. In this blog post, we will explore and analyse the complexities of third-party premiums and answer the vital question: What is TP Premium in car insurance? It is extremely important for car owners to know about TP Premiums as they directly impact the total cost of your insurance coverage.

The Basics of TP Premium

Let’s begin by breaking down TP Premiums. TP, short for ‘Third Party’, is that section of your motor insurance policy that steps in when there’s damage or injury to others. However, comprehensive car insurance goes the extra mile, bundling third-party liability insurance and own damage cover, which protects your car from a variety of scenarios – theft, vandalism, natural disasters, and even man-made mishaps like riots. By paying an extra premium, it also covers bodily damages caused to the car owner or driver. A comprehensive car insurance policy can be further enhanced by bundling add-on covers, but keep in mind that the insurance premium will increase. It is essential to understand how TP insurance works to make safe and sound decisions to protect your car.

What Does Third-Party Liability Insurance Do?

Your insurer will have to be informed about an event of claim and a thorough investigation will take place. According to your case, the outcome will be decided. Post-investigation, if you are eligible, the insurer will cover your monetary and legal liabilities.

Important Advantage of Third-Party Liability Insurance

Damages caused to the insured vehicle or its owner in the event of an accident are not covered under Third-party Liability insurance. Comprehensive car insurance will be much better in getting overall insurance protection.

Third-party liability insurance, on the other hand, pays for third parties’ property losses or personal injuries in the event of an accident. It also covers potential legal liability expenses following an accident.

Factors Influencing TP Premium

Insurance plays a vital role in deciding the car prices in India. The overall price of the car includes the insurance costs. The cost of insurance coverage will have to be taken into consideration when the car is bought by the car owner. The risk associated with the car model is calculated and considered by insurers in determining insurance premiums. The higher the risk of being in an accident or stolen, the more the insurance premium will be, increasing the overall value of the car.

In India, it is a legal mandate for all cars to get third-party liability car insurance. The third-party liability car insurance rates are set by the Insurance Regulatory and Development Authority of India (IRDAI). As it is mandatory to get third-party insurance, the premium is factored into the total cost of the car.

Insurers consider various factors when calculating the third-party premium. The factors are:

• Make, model and age of the car
• Engine Cubic Capacity (CC)

Understanding these influencing factors empowers you to make informed decisions when selecting your coverage, ensuring that your TP Premium aligns with your budget and provides adequate protection.

Balancing TP Premium and Overall Coverage

When navigating the world of car insurance, the balance between TP Premiums and overall coverage is crucial. While it may be tempting to opt for the mandatory minimum third-party liability coverage to reduce your premiums, it is important to consider the potential financial consequences in the event of a serious accident.

Investing in a slightly higher TP Premium to add additional liability can provide significant protection to protect you from uncovered costs that may arise if your coverage is lacking. It’s a delicate balance that requires careful consideration of your financial situation, driving habits and potential risks.

Furthermore, consider additional coverage options beyond the TP insurance coverage. Comprehensive coverage, which includes protection for your vehicle, can provide an extra layer of security. Evaluate your needs and assess whether additional coverage elements are warranted to ensure comprehensive protection.

Conclusion

All in all, an important part of being a responsible vehicle owner is understanding what the TP Premiums are in car insurance. It’s not just a financial commitment, it’s also a responsibility to make sure you can hit the road with confidence, knowing you have the protection you need.

Do you require help in selecting the best policy for your car? You may get in touch with Elephant.in today! Email us at support@elephant.in or call us on our toll-free support number- 1800 266 9693, to talk to our experts!

*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/23-24/07

Buying a new car is an exciting experience, isn’t it? But it also comes with the additional responsibility of ensuring your car is well-protected and insured. Advancements in technology have now made the process of acquiring car insurance more advanced, accessible and simplified over the years. At Elephant.in, customers can compare and purchase car insurance plans online in just 3 easy steps.

Nonetheless, you need to keep certain factors in mind while insuring your car. In this blog, we will cover some of these points.

What Are the Different Types of Car Insurance in India?

Selecting the best car insurance when buying a new car may seem complicated. With numerous coverages available, it is important to make a choice that is informed and reflective of all your requirements.

• Third-Party Liability Insurance: It helps in covering the costs when one injures someone or damages someone’s property in the event of an accident. In India, the Motor Vehicles Act of 1988 has made it compulsory for all motorised vehicles to have third-party liability insurance.
• Own Damage (OD) Insurance: This type of insurance is useful in case of damages caused to your car by natural calamities like storms, earthquakes, floods etc. or man-made disasters like riots, vandalism or theft. They cover damages that a third-party liability won’t cover. Bear in mind that while OD insurance may not be mandatory under Indian motor laws, it can only be purchased along with third-party liability car insurance.
• Comprehensive Car Insurance: It is an all-around car insurance policy that covers you from third-party damages along with protection against damages caused to one’s vehicle due to accidents, natural disasters, theft or vandalism. Along with that it also covers the costs of hospitalisation for the driver and/or passenger, towing charges, and personal accidents.

Often, low-cost car insurance policies offer coverage only for third-party liabilities. That means in the event of an accident, the insurer will only cover property damages or physical injury or death to the third party. Damages to your vehicle and yourself will have to be borne by you.

That’s why it is always recommended to buy a Comprehensive Car Insurance Policy, which offers coverage for own damages, in addition to third-party liabilities. It may seem to be a little more costly, but it will prove to be helpful in the event of an accident.

Various Factors Affecting Insurance Costs

The cost of insurance for new car purchase can vary significantly depending on numerous factors:

• Vehicle Type: The make, model, and age of your car influence premiums. High-end and newer vehicles often cost more to insure.
• Driving History: Your driving record, including accidents and traffic violations, affects rates. Safe car owners typically pay less.
• Coverage Limits: The amount of coverage you choose impacts costs. Higher coverage limits result in higher premiums.
• Deductible Amount: A higher deductible means lower premiums, but you pay more out of pocket in case of a claim.
• Location of RTO: The location of the Regional Transport Office (RTO) where the vehicle is registered also affects the insurance costs. Insurance providers consider your car’s registration location as one of the key factors when determining your premium.

Understanding the Legal Requirements

The legal requirements for car insurance in India are governed by the Motor Vehicles Act of 1988. According to the act, Third-Party Liability Insurance is a mandatory requisite for all vehicle owners. This coverage protects one against legal liabilities that arise from causing damage or injuries to third-party individuals/property in case of an accident. Personal accident cover, which is included along with the mandatory third-party liability insurance, provides coverage to cover the costs of bodily injuries or death of the vehicle owner or driver.

Consider Additional Coverage

Third-party liability insurance doesn’t cover own damages. While the Comprehensive Plan safeguards your car, it may overlook certain liabilities like depreciation, engine damage, consumables repair costs, and roadside breakdowns. It is better to have additional coverage plans under you to make everything even more safe under additional protection policies. They are referred to as “add-ons” and some of these are:

• Roadside Assistance Cover
• Zero Depreciation Cover
• Engine Protection Cover
• Return to Invoice (RTI) Cover
• No Claim Bonus (NCB) Protection
• Personal Accident Cover for Passengers

Assess Your Voluntary Deductible

A deductible is a part of the claim and is the amount the policyholder pays before the insurance company takes responsibility for the claim. There are two types of deductibles in car insurance namely– Compulsory and Voluntary Deductible. The compulsory deductible is an amount that is fixed by the insurer and has to be paid mandatorily by the policyholder whenever a claim arises. Voluntary deductible is the amount that is chosen by the policyholder to meet a part of the claim from his own pocket before raising it to the insurer which is not mandatory. In the case of voluntary deductible, the higher the deductible, the lower the premiums one pays.

One must plan out their finances and decide how much one can comfortably afford in the event of a claim.

Check for Discounts

Did you know installing a government-approved anti-theft device in your car can reduce your car insurance premium by a considerable amount? Additionally, being a valid and recognized member of the Automobile Associations can also earn you a 5% discount on the own damage section of the premium. To find out which reductions you might qualify for, check with your insurance provider.

Can You Buy Insurance for a New Car from Outside?

When purchasing a brand-new vehicle from a  car dealership, you might be offered the option to get the insurance for the new car purchase right then and there. However, you can explore and select car insurance providers of your choice as long as they offer their insurance services in India. You may purchase your car insurance from Elephant.in regardless of where you purchased your vehicle from.

Conclusion

Purchasing auto insurance at the time of a new automobile purchase is crucial for safeguarding your financial investment and guaranteeing your safety while driving. By considering extra coverage, comparing costs, and being aware of your legal requirements, you may select the insurance policy that best suits your needs and budget. Getting into the world of insurance can get complicated, but with the presence of Elephant Insurance, no more! We have leading insurance experts who can help guide you through the entire process, email us at support@elephant.in  and get in touch with Elephant 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/23-24/09