Do You Know These 5 Technical Terms Related to Your Car Insurance?

insurance of car

Before buying a car insurance you must be familiar with the technical terms related to its insurance.  After understanding them thoroughly you can buy it from any leading car insurance firm more easily. An informed decision is anytime better than impulsive or ignorant one. A car policy is an investment of both your money and time so you must utilize it wisely.  

 

  • Online Premium Calculator

 

Buying a car policy online has got its own advantage. Not only you can get the best premium amount but can utilize many other free tools as well. One such tool is the usage of an online premium calculator. It’s freely available on web aggregators like PolicyX offering a great advantage to the buyers. Within a few seconds, you can get the rate of premium from any leading car insurance players. All you need to do is just enter a few details related to your car and get the instant amount. This can help you in comparing the rate of premium among various car insurance players like Reliance General, Bajaj Alliance, HDFC ERGO or New India car insurance plans and many more. The rate of premium can be one of the important parameters in helping you deciding about which car policy to be picked.   

 

  • No Claim Bous (NCB)

 

NCB is a reward given by the car insurance provider to all the policyholder. It increases every year by 5 to 10% . You can avail it only if you don’t take any claim within a year. It’s always advisable to avoid small claims to leverage the benefit of NCB. It is one of the best benefit provided by the insurance company for the car.

 

  • Insured Declared Value (IDV)

 

IDV is the maximum amount of Sum Insured facilitated by any motor insurance company. This amount is based on the depreciation value of the car. It decreases at a steady phase every year. There is a fixed formula based on which IDV is decided.

 

Sno.Depreciation %age for IDV
<6 months 5%
1 year>6 months15%
2 years < 1years20%
3 years <2 years 30%
4 years< 5 years 40%
5 years<4 years  50%

 

After the 5th  year, IDV is mutually decided by the vehicle owners and car insurers. Higher the IDV, lesser is the premium amount you need to pay.  This percentage is usually fixed and is based on the formula:-

 

Formula IDV= ((Selling Price by the Maufacturer- Depreciation)+(Additional accessorries- depreciation))- (Registration+ Insurance Costs)

 

  • Add-Ons

 

Add-ons are the additional features offered by your motor insurance firm.  You can select among many add-ons as offered by multiple motor insurance companies. Add-on provided by some of the motor insurance companies are as follows

 

Sno. Add-On’s
1.Key Replacement
2.Hydraulic Lock Replacement
3.Engine Protect
4.Car Towing
5.Hotel Accommodation at the time of Car Breakdown
6. Cab Facility During Car Breakdown
7. Accessories Replacement

 

 

  • Types of Insurance  

 

There are many types of car insurance provided by the insurance companies. You must select the type of insurance as per your requirement. Third party insurance is mandatory for all the car owners. You might need to possess an additional cover for own-damage. This type of insurance will protect you from any kind of risk of damage. You may choose to take a comprehensive plan that can protect your vehicle against any kind of risk including third party cover. So broadly there are three kinds of car insurance to select from as follows.

 

  1. Third-Party
  2. Own-Damage
  3. Comprehensive Cover

After having a good idea of technicalities of your car insurance plan you can easily buy the car policy of your choice. You can buy your car policy from any platform. One of the most preferred channels of buying your car insurance is through an online platform. You can get the best price while choosing your car insurance online. Not only the online platform is convenient its quiet swift as well.  You can compare the plans among the leading car insurance player and select a suitable plan as per your requirement.

Making payment is quite simple and secure through the online channel as well. You can easily pay through NEFT, IMPS or any other online method. After making the payment you can get the car policy in your inbox within a few seconds. Because of so many benefits offered by the online platform people prefer to buy their car policy through online channel. You can buy your plan through an online comparison site like PolicyX which may offer you many additional benefits as well. Technical understanding of your car policy can always help you in selecting the best insurance plan for your car.     

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