Car Insurance Blogs

Helping you to make informed decisions about insurance
Make a Smart choice by Comparing Car Insurance Policy
published on January 28, 2022

Car insurance or vehicle insurance is an agreement between the car owner and the insurance company to protect your car against financial loss or unforeseen risks such as accidents, thefts, or third-party liabilities. The insurance company covers for loss or damage caused to the car in exchange for the premium, the car owner pays. Car insurance is compulsory in India, be it for commercial or private vehicles.

To get car insurance, one has to pay a yearly premium. In the event that you are lucky enough to not have a serious accident or mishap to need to claim, you lose the premium amount you paid for insurance. Then, you get a No Claim Bonus, which is a significant amount beginning from 20% of the premium in the first year to 50% in the 6th, which is the reason it’s advised not to claim for minor damages.

The key factor that determines the amount of premium is IDV- the Insured Declared Value of the vehicle. When buying insurance for your new car, ID is calculated on the basis of the showroom’s listed price.

Next year, when you renew your car insurance policy, ID will decrease because of the rate of depreciation applied on vehicles.

IDV = (Manufacturer’s listing price – Depreciation)

(Accessories are not included in the listed price – Depreciation)

Also, one has to renew the policy within the stipulated period of time or bear the penalties. The period is generally 90 days.

One can check the car insurance online price by a car insurance calculator. It’s an online tool available for prospective buyers to check and compare the quotes of premiums to be paid from different insurance companies. This helps them to choose the perfect insurance plan as per their requirements. It allows you to compare different insurance plans and helps buyers to evaluate their insurance needs and get plans accordingly. While buying an insurance policy, new car insurance coverage should be checked. The best policy should cover your vehicle-specific, driving conditions specific, driver-specific, and third-party specific needs. Premium will increase as the insurance coverage increases.

Basically, three types of car insurance are provided by most insurance companies. They are liability, collision, and comprehensive. Each of these has its own range of coverages

Liability Coverage: It covers repair/ replacement costs, and medical bills of the third party. One should choose a liability insurance premium higher than the mandatory requirement as maximum risk coverage will be done by the policy, reducing your pocket expenses.

Collision coverage: It covers property damage or any damage to the vehicle as a result of the collision. It also offers replacement provisions.

Comprehensive coverage: This coverage includes the replacement of a vehicle if it is stolen or damaged by natural disasters.

Personal Injury coverage, and uninsured motorist protection, should also be studied while taking a car insurance policy. Nowadays, one can get car insurance easily online. Each company has unique coverage and provisions for different policies. One has to determine what coverage provisions he wants and what other features are beneficial to him.

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Alliance Insurance Brokers Pvt. Ltd.
8th Floor, Gold Crest, 10th Road, Juhu, Vile Parle (W), Mumbai 400 049, India
Monday - Saturday
9:30 am - 6:30 pm IST
CIN: U67200MH2003PTC141621
IRDAI Registration No.: 217
Valid from : 13/10/2021 to 12/10/2024
Category : Composite Broker
Principal Officer Name: Mr. S. V. Thakkar
*All discounts provided by insurers as per IRDAI approved insurance plans. Standard T&C apply.
Insurance is the subject matter of solicitation. For more details on policy terms, conditions, exclusions, limitations, please refer/read policy brochure carefully before concluding sale.
Visitors are hereby informed that their information submitted on the website may be shared with insurers for soliciting insurance policies.The product information for comparison displayed on this website is of the insurers with whom our company has an agreement.Product information is authentic and solely based on the information received from the Insurer.
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