Car Insurance Blogs

Helping you to make informed decisions about insurance
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How to Buy Car Insurance in Delhi?
published on June 22, 2024

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

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Purchasing Car Insurance in Mumbai: Comprehensive Guide
published on June 17, 2024

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

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Difference Between Comprehensive And Bumper to Bumper Car Insurance
published on April 24, 2024

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

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All You Need To Know About Bumper To Bumper Car Insurance
published on April 20, 2024

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:

Bumpers Damages caused to both the bumpers (Front and back)
Exterior Tail lights and Head Lights Damaged or broken headlights and tail lights
Side Mirrors Damaged or broken side mirrors
Windshield & Windows Cracked or shattered windshields and windows
Alloy Wheels Dented or scratched alloy wheels

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:

Wear and Tear Gradual damage to parts due to regular use (e.g., faded paint)
Mechanical Breakdown Engine failure or other mechanical issues not caused by an accident
Engine Damage from Oil Leakage Damage to the engine due to a leak
Accidents Due to Negligent Driving If the policyholder’s negligence during driving caused the damages
Unapproved Modifications Damages to parts not approved by the car manufacturer
Natural Disasters (Unless Specified) Floods, earthquakes, or other natural disasters (check your policy for details)

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

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Useful Tips to Consider When Buying Insurance for Your New Car
published on February 23, 2024

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

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Factors Affecting Car Insurance Premiums
published on February 22, 2024

To prevent loss or repair the damage to your car due to accidents or unexpected events, getting car insurance is vital. People tend to stay away from the process of buying car insurance as the process of acquiring one can be complex and tedious. However, getting your car insured is mandatory by law in India under the Motor Vehicles Act of 1988. Getting car insurance is very simple nowadays, as the process of buying, selling, and availing of after-sales services can be done completely online. To get your car insurance online, visit Elephant.in and get your car insured in 3 quick and easy steps!

Before purchasing car insurance, one must understand the several factors affecting insurance premiums. The type of car you own is one of the factors affecting car insurance premiums. This blog explores how the kind of car you drive affects your insurance premium.

Understanding the Relationship Between Car Type and Insurance Premium

It is crucial to comprehend the connection between the type of vehicle you own and its influence on your car insurance premiums. If your car has a higher market value, the corresponding insurance premium will likely be higher as well. Conversely, if the car is priced more affordably, the insurance premium will be proportionately lower. Hatchbacks, sedans and Sports Utility Vehicles (SUVs) are the 3 types of cars majorly available in the Indian car market. The other types of cars are usually a mixture of the 3 categories mentioned. For instance, a car can have features from a hatchback as well as an SUV. When compared to SUVs and sedans, a hatchback may cost less because of its limited capabilities. Therefore, you may have to lower insurance premiums if your car is a hatchback.

Numerous factors support the idea that car insurance premiums are linked to the type of car, including:

Brand and Model of the Car

The car insurance premium is influenced by the make and model of your vehicle. Even within the same model offered by a single brand, each variant can have a distinct impact on the insurance premium. This disparity arises due to unique features in each variant, leading to varying costs for parts. Cars with advanced technology often incur higher insurance premiums due to the higher expenses associated with repairing or replacing their sophisticated components. This is because, in case of an accident, the insurer covers the costs incurred for repairing or replacing these parts.

Type of Fuel Used

Car insurance premiums are also impacted by the type of fuel a car uses. Cars that are powered by petrol usually cost less when compared to cars that are powered by diesel making the insurance premiums for a diesel car higher when compared to a petrol car. A car with an installed CNG or LPG kit increases the cost of the car which in turn increases the car insurance premiums.

Capacity of the Engine

The engine Cubic Capacity (CC) is another important factor that impacts car insurance premiums. Cubic capacity is different for various types of cars. A car with a larger engine capacity is subjected to higher premiums. Sedans and SUVs have higher engine cubic capacity compared to a hatchback, which makes insurance premiums higher for higher-CC cars.

Installing Electrical and Non-Electrical Accessories

Electrical and non-electrical accessories are the two major classifications when it comes to car accessories. Electric accessories include the music system, air conditioners and the various light installments that are done in the car. On the other hand, non-electric accessories are seat covers, different interior fittings and alloy wheels. Installing both types of accessories in the car increases car premiums. This is because of the accessories add-on cover that you might opt for to protect these electrical and non-electrical accessories.

Conclusion

Insurance premiums are greatly impacted by the kind of vehicle you drive. It is advised to keep shopping around for different coverage options as no two insurers are the same. Finding the coverage option that best suits your needs and finances is essential.

 

We hope this blog has helped in answering your question – Does the type of car affect insurance rates? Reach out to our experts by emailing us at support@elephant.in to solve any further queries!

Obtain your ideal car insurance from Elephant.in and get exclusive discounts with just a few clicks!

*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/23-24/08

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Decoding Third-Party Car Insurance
published on February 26, 2024

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

 

 

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Navigating The Concept of Own Damage Premium
published on February 26, 2024

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

 

 

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How to Lower Car Insurance Premiums – A Complete Guide!
published on February 13, 2024

To save a substantial sum of money while acquiring car insurance requires lowering auto insurance premiums. Owning a car back in the day was a luxury but advancements in technology along with the increased purchasing power of individuals have made it easier for the diverse population to acquire a car. As the number of cars is increasing on the road, the number of accidents is on the rise. In India, it is mandatory by law to get your car insured. The Motor Vehicles Act of 1988 has made it compulsory for all cars to have third-party liability insurance coverage.

We offer numerous tips in this blog that will enable you to reduce your auto insurance costs without compromising coverage. We shall provide essential tips and efficient strategies to help you navigate the road to savings.

Understanding Your Policy

Before getting into how to lower car insurance premiums, let’s get the fundamentals clear! Take a peek at your policy and understand what it covers and what are your deductibles. Why? Because when you know the lay of the insurance land, you can make smart choices about tweaking your coverage and potentially trimming those premiums down. You need to understand the various factors affecting your car insurance premium as it will allow you to make proper decisions.

Discounts for a Clean Driving Record

How to reduce car insurance premiums? Maintain a clean driving record! Car owners who have minimal to no claims in their driving records are rewarded by the insurers. Having a clean driving record is advantageous as it assists you in negotiating a reduction in premium. Driving safely is advised since it motivates insurance companies to reduce your premium.

Bundle and Save

Bundling different insurance policies can help in reducing auto insurance premiums. Compiling insurance policies together encourages insurers to provide discounts. Get in touch with your insurance provider to explore bundling options to avail discounts to lower car insurance premiums. Along with that, it also simplifies insurance management as all of your policies are streamlined.

Adjusting Voluntary Deductibles

A voluntary deductible is the particular share/percentage of the claim that the car owner decides to pay at the event of the claim. Therefore, choosing to pay a higher voluntary deductible results in lower insurance premiums, but in the event of a claim, the expense out of your pocket will be higher. Hence, it is key to find a balance. Carefully consider your risk tolerance, which will help you determine your comfort level with unexpected costs.

Installation of Safety Features

A car with installed safety features lessens the chance of theft and accidents. Installing Indian Automotive Research Association (ARAI) certified measures in your car will result in lower car insurance premiums as insurers appreciate cars with certified safety gadgets installed. Policyholders can get a discount of 2.5% or Rs. 500 whichever is lower, based on the ARAI certification.

Opt for Pay-as-You Drive Plans

These plans operate on a very straightforward rule, the less you drive the less premiums you pay. There is a low risk of accidents as you are not taking your car out for a drive that often. Rather than paying an annual fixed fee based on elements like your vehicle’s worth and driving history, you pay a base rate and extra charges based on the distance you drive.

Keep Your Car in Great Condition

The chances of accidents are lower for a well-maintained car with minimal issues. Insurers reduce premiums for cars with safety features installed as they are less risky. It is advisable to keep your maintenance records intact to prove your car’s condition in support of your claim for reduced premiums.

Conclusion

Reducing auto insurance premiums is possible and can be a proactive and straightforward process. By understanding your policy, exploring bundling options, maintaining a safe driving record, adjusting deductibles, and conducting periodic policy reviews, you can pave the way to significant savings. Need to know how to reduce premiums on car insurance? Visit Elephant.in to learn 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!

*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/23-24/05

 

 

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Does The Type Of Car Affect Insurance Rates?
published on January 31, 2024

Car insurance is a financial safeguard that every vehicle owner needs. The Motor Vehicles Act of 1988 makes it legally compulsory for every car owner to get their car insured. Protection of your car is another vital aspect that is taken care of, once your car is insured. Getting to know the factors affecting car insurance premiums can take time and effort. We will help you understand the factors affecting car insurance premiums in this blog so that you make a well-informed decision when you are out in the market looking for car insurance.

Impact of Car Choice on Car Insurance Premiums

A significant factor that affects premiums is the type of vehicle you drive. Here is how the type of vehicle affects the premiums of car insurance in India:

  • Hatchbacks: Affordable and fuel-efficient, hatchbacks generally have lower premiums.
  • Sedans: Common and perceived as safer, sedans have moderate premiums.
  • SUVs: Known for sturdiness but considered a higher risk due to size and power.
  • Luxury Cars: With high price tags and expensive components, luxury cars command the highest premiums.

Effect of Geographical Location on Premium Costs

The location of the insured car plays a vital role in determining car insurance premiums. Higher car insurance premiums are common in metropolitan cities like Mumbai and Delhi but in rural cities, this is not the case. As these cities are heavily populated, the chances of accidents are higher along with that such cities also have high rates of thefts and vandalism, which increases car insurance premiums. Rural areas tend to be less populated which causes little to no traffic, which reduces the chances of accidents and makes the car insurance premiums in such areas comparatively low.

Effect of Age and Gender on Car Insurance Premiums

Statistically, drivers below the age of 25 are more prone to accidents. Therefore the car insurance premium for them is high. Car owners with a clean driving record are rewarded with lower car insurance premiums as they have a low-risk profile.

The gender of the car owner is an essential consideration that affects car insurance premiums. Lower car insurance premiums are enjoyed by female car owners while the car insurance premiums for male car owners are high. This is because statistics reveal that the rate of accidents for male car owners is higher when compared to female car owners.

How Does Your Car’s Insured Declared Value Affect Car Insurance Premiums?

Insured Declared Value (IDV) is the value for which your car is insured in situations of theft or complete loss of a car in a particular year. As the years go by and your car gets old, the insured car value also decreases. At the start of the insurance policy every year, the IDV is a value mutually agreed upon by you and your insurer. The premium for your comprehensive car insurance is calculated based on IDV. A low IDV implies a lower premium whereas a high IDV equates to a higher premium.

Impact of No-Claim Bonus and Add-On Covers on Insurance Premiums

No-Claim Bonus (NCB) is a reward for not making claims during the policy term. The bonus keeps accumulating over time and results in a reduced premium during policy renewal. Extra overhead coverage options like zero depreciation cover, roadside assistance, and engine protection, often referred to as add-ons, increase your car insurance premium as they provide expanded protection.

Impact of Voluntary Deductibles on Car Insurance Premiums

The amount you agree to pay out of your pocket in the event of a claim is called a deductible. Opting for a higher voluntary deductible can lead to a lower premium as you are assuming a greater share of financial risk in the event of a claim.

Tips to Reduce Car Insurance Premiums

Financially, paying a higher car insurance premium is not favourable. Here are some tips to help you understand and reduce your car insurance premiums:

  • Choose a safe vehicle
  • Install anti-theft devices
  • Maintain a clean driving record
  • Increase voluntary deductibles
  • Build a No-Claim Bonus (NCB)
  • Consider choosing need-based insurance

Conclusion

Understanding car insurance premiums can be complicated but with the right knowledge you can understand the concept and make safe and sound decisions. We hope this blog post has helped you understand the factors affecting car insurance premiums. Get in touch with our experts to solve any further queries. Email us at support@elephant.in.

You may also get your perfect quote with Elephant.in instantly and unlock exclusive discounts on car insurance with just a few clicks. Safe driving!

*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/23-24/04

 

 

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