Car Insurance Blogs

Bought your first vehicle? Congratulations! Before you hit the streets, make sure your car is protected by utilizing vehicle insurance. Purchasing new car insurance policy work wonders in safeguarding your asset. Whether you’re concerned about enduring the expenses of unintentional harm or property invoices for third-party property damage, auto insurance is the final savior.

There are loads of insurance products on the current market, all promising you a world of benefits and savings. Thus, it’s crucial to purchase a worthy insurance program. But, it’s also vital to pick out an inexpensive auto insurance program.

Here are a few ideas that can allow you to pick out the very best four-wheeler insurance without damaging your own pockets.

1. Before buying a car, compare insurance prices

Afore buying car insurance, check the cost of it. Car insurance premiums are concerned in part with the car’s price, the expense to fix it, its overall safety record, and the chances of theft. Many insurance companies offer discounts for features that reduce the possibility of accidents or theft.

2. Shop around

Costs Differ from firm to firm, so it wages to shop around; that’s why you must attempt to get at least 3 price quotes. It would be helpful for you to call companies directly or access car insurance online price. Your state insurance department may also offer judgments of charges charged by significant insurance businesses.

Get car insurance price quotes from different kinds of insurance businesses. Some sell through their representatives. These agencies have the same title as the insurance carrier. Some of them sell by independent agents who offer policies from several insurance firms. Others don’t use agents. They sell directly to customers over the telephone or through the Net.

3. Always ask for greater deductibles

Deductibles are the term used for what you pay before your insurance coverage kicks in. By requesting higher deductibles, you can reduce your costs substantially. For example, raising your deductible from $200 to $500 could decrease your collision and comprehensive coverage cost by 15 to 30 per cent. Moving into a $1,000 deductible can save you 40% or more. Before choosing a high deductible, make sure you have enough money set aside to pay it if you have got a promise.

4. Ask about group insurance

Some of the firms offer discounts to drivers who get insurance through a group plan from their employers through professional, business, alumni groups, or different institutions. You can ask your proprietor and inquire with groups or clubs you’re a member of to determine if this is possible.

5. Maintain a Fantastic credit record

Forming a decent credit history is able to cut your insurance costs. Most insurance companies use credit information to price car insurance policies. Research demonstrates that individuals who effectively handle their credit have fewer promises. To guard your credit standing, pay your bills on time, do not get extra credit than you need, and retain your credit balances as much as possible. Check your credit report regularly and have any errors corrected promptly so that your record remains accurate.

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.

Financial worries are the most painful ones that each of us undergoes in our daily life cycle. Death is not invited and if there occurs an unpredicted death, it may affect our family badly if our financial state is low.

Life insurance cover is a good goal as it will provide security for the family. A part of our income can be safely handed to the life insurance cover every month or year as per our convenience and can get super befitted. Few insurance policies are very flexible, and they also get differ in the rates and the types of covers that are chosen like term insurance benefits, term or permanent life insurance, or even whole life insurance and premium life insurance.

Life insurance also provides income tax benefits that include free of tax for any death, thus beneficiaries can be free from paying the tax and even no tax for the cash whose value grows time by time. However, 10% of tax is to be paid as income tax if we earn more than the limit that is as per the quote each insurance policy undergoes. Yes, it is more important to know about each insurance policy in the insurance market before buying it. There are chances to buy life insurance policies even with pension funds. For pension fund insurance, there will be tax relief based on the premium. Hence, everyone can get premium life insurance based on the age and premium they pay.

Talking about the age limit, the minimum age to enter term insurance is around 18 years and the maximum age is 69 years (pensioner included). Also, the term will get varied with the basic pay too. Term insurance will suit the people who have loan issues and if the budget is too low. Term insurance tax benefits may vary based on the TDS (tax deduction source). To avail of insurance tax benefits, one must have the annual premium at least 10 times. All the tax benefits are calculated by the income tax rules. Section 80C and 10D are the tax acts that are used in current tax benefits calculations.

Plan to go for 10 times plus for an annual premium and get benefited. If the sum is less than 10 times the annual premium, then 10% of the amount will be deducted. However, the beneficiary gets free on tax payments when the plan holder is no more. Plan holders aged below 45 years can have 10 times the annual premium, and the plan holder of age above 45 years gets seven times the annual premium. Insurance policies are a bit difficult, but if the plan holder chose the right one, then it will be more beneficial for the plan holder and the beneficiary.

Planning for life insurance based on income is the best thing one must have in mind before entering into the insurance policies. Let our family settle well even in the absence of the family head (income source).

One of the most popular modes of transport on the Indian roads is two-wheelers. The two-wheeler riders are also exposed to high risks of accidental injuries and fatalities, but riding a two-wheeler can make it easier to breeze through the traffic. We consider numerous factors such as design, mileage, and price, among others, when buying a two-wheeler. Hence, owning two-wheeler insurance is highly recommended to enjoy the ride without any worry. The third-party insurance cover is obligatory, which gives you coverage against a third party’s financial liabilities.

It is advisable to purchase a standalone own-damage cover or a comprehensive insurance plan that will cover both aspects under a single premium in a hassle-free manner; hence, it is also advisable to think about the cost of own damages in a mishap.

Why should you buy two-wheeler insurance online?

Motor insurance is mandatory as per the Motor Vehicles Act 1988; riding a bike without insurance is an offence that’s punishable by law. As per law, only third-party insurance is mandatory, and people prefer buying a third-party cover to save on premiums. However, it is essential to understand that having an insufficient insurance cover is as good as having no insurance at all. Therefore, it is necessary to compare bike insurance online and buy an insurance policy that meets your requirements in the best way.

Tips to consider when it comes to buying two-wheeler insurance online:

You consider various factors like looks, mileage, cost, etc. Similarly, you should choose the right insurance cover for your two-wheeler by going through several aspects while buying a two-wheeler. As a comprehensive two-wheeler insurance cover provides an all-inclusive cover, it is advisable to prefer buying cover over third-party insurance.

Know your Coverage Requirement:

It is essential to make an assessment based on your requirement and budget before you start to look for insurance. Bike insurance is of two types depending upon coverage – third-party cover and comprehensive cover. Based on your two-wheeler usage, your expenditures, and other existing liabilities, choose a plan that offers the right range.

The Cubic Capacity of the Bike Decides your Premium:

When you are choosing insurance, be informed about your bike’s cubic capacity, as your bike’s cubic capacity decides the insurance premium that you will pay. If the cubic capacity of your two-wheeler is high, your premium will also be on the higher side under the motor vehicle insurance quote.

Understand Insurance Declared Value (ID):

Ideally, as per the motor vehicle insurance quote, ID is the current market value of a vehicle. ID is the maximum sum insured fixed at the time of purchasing a policy and is the amount that will be paid in case of total loss or theft of a two-wheeler. As a vehicle age, depreciation will increase, ID will decrease, and as a result, the premium will get lower year on year. Keep the above points in mind when buying insurance, and also ensure to renew your policy on time.

Cybercrime is very rampant these days. Daily, news reports are coming off more and more crime, fraud, and theft relating to information on the internet. In case, if you are new to cyber insurance, this implies protecting the individual or the company financially against cyber-attacks such as Phishing, Identity Theft, ID Theft, Email Spoofing, etc.

It has gained immense importance in recent years, due to the proliferation of hackers, cyber thieves, etc. One of the most common types of cyber fraud is in the field of internet banking. Banking customers often get phishing emails, from fake websites, which resemble original banking sites. Then customers are prompted to enter their username and password, which gives hackers access to the bank account, and consequently, crores of money is swindled by them.

In order to counter this, banks have started an information campaign. This, however, is applicable at the individual level. At the organizational level, many firms are opting for Cyber Fraud Insurance. Using this technique, the firm is insured against cyber fraud, by using the services of world-class experts. Now, let us list the advantages of cyber insurance, which have made it so popular. 

1. The gap between the current requirements and traditional coverage is greatly reduced

It has been observed that traditional insurance, which is done for commercial liability, is applicable for risk, which comes out of a tangible property, which implies the server, on which data is stored. Conventional policies do not cover the first-party breach costs for notification. This results in a huge gap in the organization’s digital assets coverage, which exposes them to the full costs of an event leading to loss of data. Consequently, cyber insurance is designed to fulfill this gap and act as insurance against cybercrime. To put it into simpler language, cyber insurance provides coverage for:

• Loss of data.
• Costs of remedy to respond to a breach of data.
• Legal penalties and fines and regulations.

2. Covering the expenses of a data breach

Data breaches are very difficult to estimate and make a budget. The scope, size, and complexity of data breaches vary tremendously. Breach of information is very expensive, due to very strict requirements for notification, the chances of fines from different regulatory authorities, specialized monitoring for medical identity and recovery services.

It has been observed that cyber insurance assists individuals cope with unwarranted expenses, and handle some of the costs associated with loss of data. The most common form of loss of data consists of Forensic Investigation, Fees for litigation, All types of communication ( Call Centers, Notification Letters, Regulatory Services ), Data Analysis, Monitoring of Identity ( Credit Monitoring ), Public Relations, Services related to identity restoration, Legal Settlements and Regulatory Fines.

3. Delivering resources for responding to a data breach

In case, there is a loss of data or a very staggering data breach, there are plenty of carriers that offer a panel of approved vendors. This consists of a lawyer, who gives guidance to the insured with the help of the breach response process.