Car Insurance: Buy or Renew Car Insurance and Save Up-to 60% on Premium

Get the best of both worlds - superior car coverage and attractive premium.

The Importance of Car Insurance in India

5 lakh road accidents annually. 1.5 lakh people die. Another 3 lakh crippled. Countless damaged vehicles.

Natural Disasters – Floods

In 2005, a cloudburst in Mumbai claimed 698 lives and damaged 20,000 cars.

22,000 vehicles reported missing in 2014 (of which 6,019 were cars). Only 2,322 are ultimately recovered.

A Smart Way to Financially Cover Your Car

Frontal DamagesRs. 25,000
Windshield DamagesRs. 6,000
Bumper DamagesRs. 5,000
BonnetRs. 6,000
FenderRs. 5,000
HeadlightRs. 3,000
TotalRs. 50,000

Car insurance policy would have costed you a certain premium:

  • Without zero dep: Rs. 6,000

  • With zero dep: Rs. 8,000

Now, a car insurance can't help you pay for medical bills in case you were injured in an accident. However, paying a miniscule amount like Rs. 8,000 every year can still help you cover those Rs. 50,000 [or more] worth of accident-related damages to your car.

No Insurance = Financial Expenses + Emotional Torture + Stress + Inconvenience

Third party property damage that will be covered is up to 7.5 Lakh and in case of physical injuries/death it will be taken into court tribunal.

For a premium of Rs. 100, Personal Accident Cover for owner driver gets compensation up to maximum Sum Insured of Rs. 2 Lakh in case of:

Nature of injuryScale of compensation
Loss of two limbs or sight of two eyes or one limb and sight of one eye.100%
Loss of one limb or sight of one eye50%
Permanent total disablement from injuries other than named above.100%

Disclaimer: Please note that the above figures are approximate and just for representational purpose, keeping a standard hatchback car in mind. They will vary as per the intensity of the accident/loss, car make model, and engine capacity.

With 25 insurers and 100+ products to choose from, Coverfox works actively to find a plan that is ideal for you—basically, the best one, the right one. From providing you with all the right information to offering unbiased comparisons, we do it all. Hey, you don't even need to engage with the insurer yourself.

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That’s why you need to know what coverage to choose

This compensates the damages to a third party and their property. It’s best for those planning to insure their car just because it's mandatory (but we wouldn't recommend that!).

The quote that you get for TP cover is the sum of its components which include:

  • The basic third-party premium
  • Premium for Personal Accident Owner Driver Cover – Rs. 100
  • Service tax – 15%

The basic premium for third-party depends on the cubic capacity. These rates are revised each year by IRDA. From 1st April, 2016, the third-party insurance rates are:

Condition Relating to Engine CapacityApplicable Premium Rate
Not exceeding 1000ccRs. 2,055
Above 1000cc but lower than 1500ccRs. 2,237
Exceeding 1500ccRs. 6,164

Comprehensive Coverage

This covers damages to the third party, as well as your own car. It is best for those wanting to cover for losses for accidents and incidents such as theft and natural disasters.

The quote that you get for comprehensive coverage is the sum of its components which include:

  • Third-Party premium
  • Own Damage premium
  • Premium for Personal Accident Owner Driver Cover – Rs. 100
  • Charges for additional coverage (add-ons)
  • Service Tax – 15%

The own damage premium depends on Insured Declared Value (IDV), engine capacity and vehicle RTO. The IDV is the value of the car based on its ex-showroom price and depreciation percentage. An add-on cover depends on your car’s requirement and thus is a variable. The service tax is charged on the OD premium.

  • What are Exclusions on my Car Insurance Policy?1 min video

Damages that might happen to your car in an accident. Damages caused if you were caught driving under the influence of alcohol.
Personal Accident Cover - if you (the owner-driver) are injured in a car accident, the insurer compensates you. Loss and damages that may be caused because of a war or a nuclear strike.
Financial protection to your car from natural calamities such as floods, earthquakes, etc. Accident-related damages caused while you were using your car for illegal activities.
In case your car gets stolen, your insurer will pay an amount equal to your car's IDV. Damages caused or losses incurred to your car while you were driving without valid license.
Coverage for damages caused during a man-made disaster - including riots, strikes, fire, and terrorism are covered. Regular mechanical expenses due to consistent wear and tear.

Factors Affecting Your Car Insurance Premium

6 Clever Hacks to Reduce Your Car Insurance Premium

You do have the option to reduce your IDV if you want to lower premiums. But, remember that this is the same amount you would receive in case of a claim.

Declare correct policyholder details

Reveal right details to your insurer - age, occupation, and car mileage. Because as a skilled driver, you may be eligible to receive a discount on these factors too.

Don’t claim for small expenses

Saving up on NCB can lower your premium by 50%. If you claim on every small expense incurred, you could lose your chance to accumulate NCB discount.

Pick and pay for features you’d use

Filling your car insurance cover with add-ons that aren’t useful will only take a toll on your premium and provide you no value at all. So, pick add-ons that your car needs.

Renew policy before time lapses

Don’t want to renew your policy on time? Don’t complain if you end up losing all the saved-up discounts! Moreover, not renewing would only add to the trouble of getting the car inspected by the insurer once again.

Increase voluntary deductible

Choose a higher voluntary deductible to lower your premium. Just remember that it’s the same amount of repair cost that you agree to bear in case of claim.

6 Things to Check Before Renewing Car Insurance Policy

If you only have third-party plan, then you need to consider getting a comprehensive policy. This will cover you against heavy expenses of repairing your car in case of an accident.

You need to get suitably compensated in case of theft/loss. Depending on your car’s age, re-evaluate your car’s Insured Declared Value against premiums. By this, you’d know if you have got the best price.

This makes a huge different. If you haven’t checked the claims ratio of your previous insurer, don’t skip verifying it now.

Make sure you look for the cashless garages near your area that would provide, repair services for your car.

If you were not aware how add-ons can help you during claims, this is the time. If your car’s age is less than 5 years, consider covers like Zero Depreciation or Engine Protector or Return to Invoice.

Check if you’ve got all discounts that you are eligible for. A deductible indicates the amount you will have to pay every time before claim. If your policy includes it, ensure that it fits your budget.

Agents vs Dealers vs Brokers

Who are theyAgents are licensed to represent one insurance company. They help customers buy policies of the insurance company they are employed with. Car vendors / dealers are those who sell cars to customers. They usually bundle an insurance policy when you purchase a new car. IRDAI Licensed organisation/individual who can sell plans of multiple insurance companies. They are required to assist customers with insurance purchase and claims.
Their expertise They are experts of the plans offered by the company they are employed with. They usually have tie ups with some insurance company. They'll help you buy its policy.They can offer plans from multiple companies and are authorised to provide technical assistance, after-sales requirements.
The advantageThey have extensive knowledge about particular insurance plans of that insurer. They also offer complete claim assistance.They give you the insurance along with the new car. They take care of all the forms and paperwork.You get the power of choice. You can buy a suitable plan after comparing plans from all the insurers.
The drawbackThey can only sell plans of one insurance company. You'll have to go to another agent if you ever decide to switch insurers. They are experts in selling cars. Not insurance. The insurance policy they suggest might not be the best that your car needs. You can often end up paying for features you don't need.There are none, really. Other than the fact that even though a broker will help you though the process of claims settlement - the last decision still resides with the insurance company.

Choose The Right IDV A lower IDV demands a lower premium to be paid. (But compute wisely, since IDV is the utmost value the insurer can compensate you with).Avail No Claim Bonus Your responsible driving skills are rewarded with a bonus of upto 50% on your premium, for every consecutive claim-free year. Now isn't that a treat? Install security devices Automative Research Association of India (ARAI) approved anti-theft devices can fetch you upto 2.5% discount on your premium! Become AAI Member Membership of the Automobile Association of India, an organisation powered by IRDAI, secures you a concession on own-damage premium.

  • What is NCB or No-Claim Bonus for Car Insurance?1 min video

Choose The Right IDV Get up to 60% discounts on own-damage premium. The discount rates vary for each Car make, model and RTO. Check out the rates against your car!Avail No Claim Bonus We have a team of experts to help you pick the right insurance for your car. They are there to help you, and not push sales down your throat. We recommend listening to their advice, and making your own decision. Install security devices Our service managers are there to help you with any concern regarding your policy. Confused about some clause? Need something changed? Want to file a claim? We are here to help.Become AAI Member Car damaged? No more waiting for days to get it back on the roads. Our Express Claims Service guarantees 3 day car repairs and claim settlement. Just give us a call, and we’ll do the rest. It’s a door to door service, you don’t have to move an inch!

  • What is NCB or No-Claim Bonus for Car Insurance?1 min video

If you switch insurers, No-Claim Bonus discount against your previous policy gets transferred to the new one. You just need to declare the NCB earned in your previous policy. Changing insurers does not incur extra charges. You can pick the cheapest rates every year and pick the insurer you want to go with. It is as simple as that! Just because you renew with another insurer doesn’t mean you have to undergo a waiting period to receive all benefits of the new plan. Access all the features of the plan from day 1.

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Coverfox Car Insurance

Category: Auto Insurance

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