Car Insurance FAQ

Life Insurance FAQ Health Insurance FAQ Car Insurance FAQ

Which points I need to check in my auto insurance plan?

Each information must match with your details including make model, CC, fuel type, sub type, seating capacity etc.

 Which points I have to check in the renewal notice?

You must check IDV value, vehicle registration number, premium amount, NCB (if applicable) and third party insurance premium.

How to select the best auto insurance company in India?

Check whether the auto insurance company has a cashless tie-up with the wildest network of service stations. The insurance company which provides the best rate without any excess on it is more preferable. Don’t forget to check company history and claim settling ratio.

Why premiums of two insurance companies are not same?

Each insurance company provides different accidental cover and different IDV. Hence, premium amount is also differs for all insurance companies in India. It is good to keep your IDV on higher side as it helps during claims and at the time of selling vehicle.

What is NCB?

In case auto owner don’t make any insurance claim on his insured vehicle, then you are eligible for a No Claim Bonus.

What does excess mean? Does it good or bad?

Excess is the amount which will be deducted by the insurer before making the payment to policyholder. There are 2 types of excesses: The first one is compulsory and depends on the cubic capacity (C. C.) of the vehicle. You can’t exclude this figure from the policy. The other one is a voluntary excess and is given to auto owner for decreasing the premium amount in the policy. It is not a recommended choice to avail, since it decreases the claim payout in case its required. Do not agree for higher excess.

What is included under own car damage?

Vehicle repairing expenses or vehicle replacement cost is paid to you in case auto owner have chosen for this coverage in your insurance plan.

When do insurers not give the complete IDV?

In case, auto owner has not decreased the car value every year minimum by around 10 percent previous year’s IDV, then your insurer will not pay the IDV. If auto owner has increased the car value without any valid reason, then also insurer will not pay the whole IDV.

What is covered under third party insurance?

Third party property damage, third party life damage and an accident are covered under third party insurance.

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