The premium of the insurance depends on various reasons. The factors include the value of the vehicle, the power of engine, seating capacity, vehicle type, age of the car, city of registration, period of coverage, and the value of accessories like air-conditioner and music system. Close

The value of the accessories is calculated on the basis of original cost of the accessory at the time of purchase less depreciation for the usage. Close

Accidents on roads are not unusual. To keep you and your car safe from the accidents the Indian Government has made it mandatory to have motor insurance. It is useful as it helps you in protecting your car and helps you in coping with the expense of accidents or damage, or even theft. A car insurance is between a car owner and an insurance company where the insurance company agrees to pay a sum of money to compensate loss due to accidents, etc. Close

You need to cover your car with insurance all the time. The insurance plans are normally issued for the period of one year. However, in rare cases car insurance extension for less that one year can be issued after approval from authorities. Close

Two types of auto insurance are in practice in the market--Motor Policy A, commonly known as third party insurance and Motor Policy B, which is more widely known as comprehensive insurance policy. You are legally required to go for the third party insurance though going for comprehensive insurance policy would be better. Close

It is mandatory for every auto owner to get third party insurance cover. It covers the car owners against Act Risks under Section 146 of Motor Vehicles Act 1988. The scope of cover of the third party insurance is to pay compensation for death of bodily injuries to third parties and also damage done to the property of the third party. For cars the 'Act Only Policy' covers third party property damages upto Rs. 6000. For theft or fire risk covering you need to pay more. Close

A comprehensive insurance policy is more than a normal third party insurance. It includes third party cover, any damage or loss caused to the vehicle due to reasons like fire, accident, theft, flood, earthquake, riots, etc. You can also get insurance for car accessories like music system and air-conditioner. However, you will have to pay additionally for the additional insurance cover. Close

When you go for any insurance cover the company offering you insurance considers several factors in deciding the rates to cover your car. The factors may include your age, the make and model of the car, your driving record, where your drive your vehicle and the location of the garage of your car. Close

It is possible for you to transfer the insurance policy to some other company. It requires you to submit a new proposal form. In this case the new insurance company may make a physical inspection of your vehicle. A notable thing is that your bonus can also be transferred to the new policy. Close

The IDV of the vehicle is to be fixed on the basis of various factors like the manufacturer?s listed selling price of the model, the vehicle proposed for insurance at the commencement of insurance renewal and less depreciation for usage. Close

If you maintain a claims-free record, you accumulate bonus points, which translate into discounts on policy renewal. When a policy holder doesn't not make a claim the insurance company provides a discount on the Own Damage part of the premium. In the case you have installed an anti-theft device in your vehicle, which is approved by the Automotive Research Association of India then a discount of up to Rs. 500 could be availed of. Another way for reducing the cost of premium is to opting for voluntary excess, which means opting to bear a certain amount of loss from each claim. Close

You should list your immediate family or your extended family members on your automotive insurance policy. It heps you later on in some emergency situation. The family members' driving history certainly has impact on the the insurance company's decision to provide the insurance cover for your vehicle and also influences the rates of premium. Close

Usually the rate of insurance quote varies depending on the insurance company. The company's claim experience, the types of people they insure and cost for doing business vary from company to company and may cause rates to differ. Another factor that affects the insurance premium is the city, where the car has been registered. Close

A deductible is the amount of money that you have to pay when you file a claim with a motor insurance company. For example if you file a claim of Rs 2000 and as per your plan, the deductible is 20%, i.e Rs 400. In this case you pay Rs 200 and the balance Rs 800 will be paid by the motor insurance company. You may opt for an insurance plan that is high on deductible and low on premium, in the case you are not going to file claims too often. Close

You get a 'no-claim' discount when you become eligible for a discount in the premium of a comprehensive insurance policy at 20% for the 1st year, 35% for the 2nd year, 50% for the 3rd year, 65% for the 4th year and afterwards. The value of the discount is decided upon the insurance claims you have made in that particular year. The amount of discount is adjusted against renewal premium. At the time of renewing the policy the ?no claim? bonus can be availed of. At the time of buying a new car you can transfer the no claim bonus to a new car from the last one. Close

In the case you do not claim for one year, you can avail of a no-claim discount, if you renew your policy with the same or a new insurance company. In the case your policy has expired, you can still avail the no claim bonus if you renew the policy within 90 days of its expiry date. When applying for ?no claim? you can show as proof the documents related to the number of years no claim discount earned, the expiry date of your last insurance policy and any claims that have been made. Close

Yes, you get additional discount in the case your vehicle is fitted with anti theft devices, approved by the Automobile Research Association of India (ARAI). The amount of discount is usually the premium of 2.5% to a maximum of Rs 500. Close

Yes, but only in the case the car is available as a standard production model in India and has an Indian registration number. Close

Yes. If you have purchased a used car, you can transfer the insurance policy to your name by informing the insurance company within 14 days from the date of purchase of the vehicle. Close

Liability follows the vehicle. So, the insurance on the car will apply even in the case it is being driven by some other person with your permission. Usually, the liability insurance of the person driving the car will have to pay in the case the amount of the loss exhausts your policy's limits. Close

Many insurers extend the liability to a non-owned vehicle when rented for personal use. Some companies have some restrictions on this use. Even some car rental companies have some restrictions. It is better to contact the insurance company to know about the restrictions and conditions applied by the company. Close

The costs that you have to bear include salvage value, cost of depreciation and compulsory deductibles. Close

Auto repair insurance policy covers the breakdown and the wear and tear of the car. However breakdown and wear and tear may not be always mutually inclusive. Some companies also may offer only breakdown coverage, and thus are liable to pay only for the repairs of the breakable parts of the car. If you opt for a wear and tear policy it will cover parts that wear out over time. Like auto insurance, an auto repair insurance policy is a contract between a vehicle owner and the car insurance company, which binds the company to pay for all repairs done on the vehicle for a fixed length of time. Close

The exclusions include wear and tear, depreciation, deliberate accidental loss, intoxicated driving, consequential loss, mechanical break down and some contractual liability. Close

The documents needed in the case of claim include proof of insurance policy, original and a copy of registration book, original and a copy of motor driving licence of the person driving the vehicle at the accident time, FIR in case of accident involving third party injury or damage, claim form along with the original estimate of repairs obtained from the workshop. After you submit the documents the insurance company appoints a surveyor, who inspects the damaged car and verifies the authenticity of the estimate of repairs. The car can be repaired only after the insurance surveyor has inspected it. You have to submit the final bill for damaged parts that have been replaced and the stamped receipt for payment made to the workshop. After the car has been repaired you have to make the payment as per the final estimate and submit the final estimate and stamped receipt to the insurance company for settlement of the claim. The surveyor surveys the car again and only then you can take delivery of your car. If your car has been stolen, you need to report the case to the nearest police station as well as your insurance company. You also need to register the case to the authority where your car was first registered. You need to obtain a duplicate RC Book from the RTO office in the case of theft. In the case of theft the procedure for the insurance claim takes longer as the RTO and the police need a certain time period to try to recover the stolen car. Close