Car Insurance 101

By BankBazaar | December 11, 2015

Car Insurance 101

What to Look For In the Perfect Car Insurance Policy

Just like you need a car that would comfortably accommodate your family, you need an Insurance that fits your needs. Let us tell you what to consider in your search for the perfect Car Insurance.

  • Zero Depreciation

Are you tired of reviewing the list of vehicle spare parts your Car Insurance covers? Getting Zero Depreciation cover in your Car Insurance could save you a lot of money. With Zero Depreciation cover added to your Car Insurance Policy, you can claim the full cost of the repair of your car’s parts.

  • Invoice Cover

Have you ever wondered what Insured Declared Value on your Policy form means? Well, it is the amount that the Insurer agrees to pay you in case your car is totally wrecked. Don’t look shocked. You can safeguard yourself. Get Invoice Cover added to your Car Insurance Policy and if your car is damaged, you can claim the on-road price of the vehicle, rather than the lesser Insured Declared Value.

  • Transfer your No Claim Bonus

Thinking of getting a new car, eh? Here are two options for you. You can choose to transfer your existing Insurance to the buyer of your old car and get a No Claim certificate from the Insurer. Or, you can keep your old car’s Insurance and get the No Claim certificate. When you decide to buy your new car, you can use the certificate for a discount on the new Insurance premium.

  • More Benefits? Gimme that!

Pay a little extra on your premium and get some add-on benefits. What are those? Well, in case you’re engine is damaged in a flood, get Engine Cover to take care of the costs of repairing the engine. And, if you find yourself stranded, Roadside Assistance would be useful. You know help is on the way.

Decoding No Claim Bonus

  • What is that?

To start, let us understand what a No Claim Bonus is. Think of a No Claim Bonus as a reward for being a careful driver and looking after your car well. A No Claim Bonus is a monetary benefit that you get if you do not make a claim on the Insurer for a certain period.

  • Why You Get a No Claim Bonus

It’s simple. When you have an accident in your car, the Insurance Company has to make a partial payment to repair the damages to the car. A No Claim Bonus is the Insurer’s way of saying thank you if you have not made any claims for a period.

You haven’t filed a claim for how many years? More, the better.

You will reap the benefits of an NCB at the time of your Car Insurance renewal.

  • You will be eligible for a discount of 20% on a renewed premium if you haven’t filed a claim for 12 months.
  • A discount of 25% is for you if you haven’t made a claim for 2 years.
  • A 35% discount on the premium of your renewed policy if you haven’t made a claim for 3 years.
  • A 45% discount is yours for the taking if you haven’t made a claim for 4 years.
  • A 50% discount on the renewed policy’s premium for no claims for 5 years.

Getting a New Car? Your No Claim Bonus is Not Lost.

When you want to replace your old car with a new one, you have two ways to use your No Claim Bonus.

  • You could transfer your existing Insurance to the buyer of your car and get a No Claim certificate from the Insurer. Use this certificate for a discount on your Car Insurance Policy when you get your new car.
  • You could also keep your old car’s Insurance and use it with the No Claim Bonus to get a discount on the new car’s Insurance Policy.

Things to Remember about Transferring your No Claim Bonus

  • Validity. Your No Claim certificate is valid for 3 years. So if you were not planning on getting that new car for a while, don’t fret. Just remember to keep your Insurer informed about when you are planning to buy a new car.
  • It’s mine. My precious. You can transfer a Car Insurance Policy to another person. But a No Claim Bonus is not transferrable. It is given only to the person holding the Policy.  
  • Transfer to same category of vehicles. You cannot transfer a No Claim Bonus from a four-wheeler insurance policy to a two-wheeler insurance policy. Keep it in the family.

Now you know what you should look for in your Car Insurance Policy. Still looking for more information? We’ve got you covered.

Additional Reading: 7 add-on covers on your Car Insurance you definitely need

All information including news articles and blogs published on this website are strictly for general information purpose only. BankBazaar does not provide any warranty about the authenticity and accuracy of such information. BankBazaar will not be held responsible for any loss and/or damage that arises or is incurred by use of such information. Rates and offers as may be applicable at the time of applying for a product may vary from that mentioned above. Please visit www.bankbazaar.com for the latest rates/offers.

4 thoughts on “Car Insurance 101

  1. liikluskindlustus

    I believe this is among the such a lot significant info for
    me. And i’m glad reading your article. But wanna observation on few general issues, The web site taste is great, the articles is in point of fact great
    : D. Excellent activity, cheers

    Reply
    1. Team BankBazaar

      Thank you for your wonderful feedback! We look forward to providing you with many more interesting articles.

      Cheers!
      Team BankBazaar

      Reply
  2. Jay Mehta

    Zero Depreciation is currently the most popular rider in the market and is being sold a rapid rate. A zero depreciation rider offers comprehensive cover to the policyholder’s car against damage. If the car meets with an accident during the insurance tenure, the car owner can file the claim for insurance and get car repaired without paying a single penny. Thanks for sharing very informative blog.

    Reply
    1. Team BankBazaar

      Hi Jay Mehta,

      You are right! Thanks for stopping by.
      Cheers,
      Team BankBazaar

      Reply

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