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Which Car Insurance Company is Best: How to Buy in Best Policy

Which Car Insurance Company is Best: How to Buy in Best Policy

Know which Car Insurance company is Best for New Car, Renewals. How to choose an Insurance Policy with utmost Important Parameters along with add on Riders

 

Car Insurance

Car Insurance is Probably the most Ignored product in buying Car.

Its pitched as a bye product by Sales Consultants or Agents without letting know the rider benefits or schemes. Despite the fact Insurance is a cover for Catastrophe situation, Even Year on Year Renewals are processed without explaining the additional covers or offerings

Know Tips to Choose in Best Insurance Policy for your New Car

Safety Rider Covers 

Standard Insurance Policy is known as Comprehensive Cover. But its important to know Add on Covers before making Informed Purchase

Zero Depreciation Cover - Most Popular As name suggest - Zero Depreciation for Plastic & Fibre Parts. Even repaint is covered 100% - which in standard insurance policy attracts 50% depreciation
Windshield Glass Cover Offered by Select few - wherein Windshield replacement does not impact NCB Bonus. Especially useful - if have high NCB Bonus and can retain in same
Full Invoice Price Cover  Vehicle IDV is calculated at 100% On Road Price and not at 95% Exshowroom Price for 1st Year and subsequent year depreciation uptill 3rd year is done at On road price
Engine Protector Cover Covers Engine Failure due to Oil Leakage after Accident. Also if Car driven over deep water - water can ingress in engine causing Hydrostatic Lock and repair expenses can go in Lakhs. 

Discounts

Its important to know the discount offerings through which Insurance Premium can be reduced. Apart from NCB - there are 3 ways in which Policy Premium can be controlled

Voluntary Deduction For customers who have NCB or don’t intend to go in for Petty Claims can go in for Voluntary Deduction Cover of Rs 2500, 5000 or even Rs 10000. Impact is Insurance Premium will come down. Downside is - any claim if occurred - Insurance company payment liability would be reduced by the base Voluntary Deduction. For example if VD taken of Rs 5000 on Swift and claim came in of Rs 20000 - amount payable by Insurance company would be Rs 20000 - 5000 for VD - 1000 for Complusory Excess
   
Anti Theft Device Discount of 2.5% on OD Premium or Rs 500 whichever is Lower
   
Don’t go Overboard with High IDV Its important to know that going Overboard with High IDV would not be useful, It leads to pocketing of commission by agents. 1st Year Insurance should be done at 95% of Exshowroom Price and for future years Depreciation should be applicable ideally at 20% over Previous Year IDV Value

Choosing Insurance Company

Now comes selection of Insurance company. Its important to know

Preferred Insurance Partners of Manufacturer: Every Car Manufacturer has done Tie-ups with Set of 4 to 5 Insurance Companies. Know those Preferred Players with which manufacturer has tie up with 

Local Workshop Level Tie ups: Its important to check in your Car Workshop Level Preferred Insurance Companies. Do not have word with Sales Consultant, but If possible have a word with Workshop Manager - Its ultimately the Workshop Manager who is going to provide in true feedback about Servicing Claims.

Service Network and Local Servicing Center: Last in is to do a small basis research in knowing about Network, Local Branch Office - so that Settlement of claim should not be an issue with

Now - an Informed decisioning w.r.t Purchase of Policy can be done - with Add on Covers, Discounts and Claim Service Levels along with Network.

Pricing - Ideally should be the last resort. Though to disclaim - its best to get Online Quote - in which Insurance Companies offers high Discounts on OD Premium to bring the final premium down. So next time - you going to renew or buy in a new car policy - dont take it for granted - but make an informed purchase.

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Important: If you seek advise or recommendation, pls raise query in Car Forum instead of posting in comments

 

Comments 1

Guest - Satnoor Singh Saluja on Tuesday, 23 June 2020 02:30

Hello Sir,

This is the on road price breakup Of Seltos HTX+ Diesel Manual (Jharkhand)

Ex- Showroom - 15,49,000/-
TCS (0.75%) - 11,618/-
Insurance - 55,535/-
Registration - 70,098/-
Extended warranty - 26,532/-
Basic kit - 17,500/-
Total amount - 17,30,283/-

*Basic kit includes accessories which we can opt for separately.

I have checked the website but this version of Seltos is not available. Can I save a certain amount in the above quoted price?
Should I take extended warranty?
It will be very helpful for me if you give some tips regarding the same.

Hello Sir, This is the on road price breakup Of Seltos HTX+ Diesel Manual (Jharkhand) Ex- Showroom - 15,49,000/- TCS (0.75%) - 11,618/- Insurance - 55,535/- Registration - 70,098/- Extended warranty - 26,532/- Basic kit - 17,500/- Total amount - 17,30,283/- *Basic kit includes accessories which we can opt for separately. I have checked the website but this version of Seltos is not available. Can I save a certain amount in the above quoted price? Should I take extended warranty? It will be very helpful for me if you give some tips regarding the same.
Guest
Saturday, 13 August 2022

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