Factors influencing the car insurance premium

Very many factors influence the rates that insurance companies offer their customers.

In addition, each company can enjoy the same risk differently.

These differences between the companies pricing insurance justifies the existence of our site whosepurpose is to bring you the best offers for insurance auto matching your particular profile.

This profile is made based on criteria that are specific to you (your age, your address, your profession,...), 

information about your vehicle and the use that you make, and takes account of your history in terms of claims.

The franchise

It is the share of costs remaining at your expense following a disaster.

For example: a motorist for damages caused to his vehicle has a deductible of €1,000 in his auto

insurance.

If after responsible for accident, the amount of the compensation is €4 500, it will receive

 €3 500. Insome cases, it is possible to appeal to the person responsible for the damage and recover the franchise.

However, the exemption does not apply in all cases. You generally have nothing to pay if you have 

anaction against a third party to 100%, identified and provided at the time of the disaster.

Some auto insurance contracts provide both fixed franchises (e.g. 1500 Euros) and proportional franchises (e.g. 10% of the damage suffered). In these cases, your insurer will accumulate the twofranchises to evaluate your compensation. Still, an overall ceiling of amount of 

exemption is set at thec ontract.

The fee for a contract of insurance auto deductible is greater than that relating to a contract with franchise.

Insurance auto with warranty assistance

This is not a compulsory guarantee, although it is included in many auto insurance contracts. It allows to cover disaster and depending on the contexts, charges such as the repatriation of a person injuredor ill abroad, available 
round-trip tickets, organization and support of 
a tow, the advance of medical expenses, the sending of spare parts to repair your car...

Each company will cover all or part of these benefits, also is it advisable to refer to the General conditions of your auto

 insurance policy to not have bad surprises... In General, this warranty is notexpensive.

Vehicle Insurance Policy

Vehicle insurance Quote, in the United States and elsewhere, is designed to cover risk of financial liability or the loss of a motor vehicle the owner may face if their vehicle is involved in a collision resulting in property or physical damages. Some states require a motor vehicle owner to carry some minimum level of liability insurance. States that do not require the vehicle owner to carry car insurance include Virginia, where an uninsured motor vehicle fee may be paid to the state; New Hampshire, and Mississippi which offers vehicle owners the option to post cash bonds (see below). The privileges and immunities clause of Article IV of the U.S. Constitution protects the rights of citizens in each respective state when traveling to another. A motor vehicle owner typically pays insurers a monthly fee, often called aninsurance premium. The insurance premium a commercial vehicle owner pays is usually determined by a variety of factors including the type of covered vehicle, the age and gender of any covered drivers, their driving history, and the location where the vehicle is primarily driven and stored. Most insurance companies offer premium discounts based on these factors.

Insurance companies provide a motor vehicle owner with an insurance card for the particular coverage term which is to be kept in the vehicle in the event of a traffic collision as proof of insurance. Recently, states have started passing laws that electronic versions of proof of insurance can now be accepted by the authorities.

Coverage generally

Consumers may be protected by different levels of coverage depending on which insurance policy they purchase. Coverage is sometimes seen as 20/40/15 or 100/300/100. The first two numbers seen are for medical coverage. In the 100/300 example, the policy will pay $100,000 per person up to $300,000 total for all people. The last number covers property damage. This property damage can coverage the other persons vehicle or anything that you hit and damage as a result of the accident. In some states you must purchase Personal Injury Protection which covers medical bills, time lost at work, and many other things. You can also purchase insurance if the other driver does not have insurance or is under insured. Most if not all states require drivers to carry mandatory liability insurance coverage to ensure that their drivers can cover the cost of damage to other people or property in the event of an accident. Some states, such as Wisconsin, have more flexible "proof of financial responsibility" requirements.

Insurance Quote  providers:

In the United States in 2015, the largest vehicle insurance quote  providers, in terms of market share, were State Farm Insurance, Liberty Mutual Insurance, Allstate, Berkshire Hathaway (which operates as Geico), and The Travelers Companies.^[2] Insurance is secured either by working with an independent insurance agent or with an insurance broker who is authorized to sell insurance policies. Some can represent from several agencies, like Guy Carpenter & Company or a growing number of online brokers who provide policy purchases through sites like Quote.com and Walmart.

Liability coverage:

Liability coverage, sometimes known as Casualty insurance, is offered for bodily injury (BI) or property damage (PD) for which the insured driver is deemed responsible. The amount of coverage provided (a fixed dollar amount) will vary from jurisdiction to jurisdiction. Whatever the minimum, the insured can usually increase the coverage (prior to a loss) for an additional charge.

An example of property damage is where an insured driver (or 1st party) drives into a telephone pole and damages the pole; liability coverage pays for the damage to the pole. In this example, the drivers insured may also become liable for other expenses related to damaging the telephone pole, such as loss of service claims (by the telephone company), depending on the jurisdiction. An example of bodily injury is where an insured driver causes bodily harm to a third party and the insured driver is deemed responsible for the injuries. However, in some jurisdictions, the third party would first exhaust coverage for accident benefits through their own insurer (assuming they have one) and/or would have to meet a legal definition of severe impairment to have the right to claim (or sue) under the insured driver's (or first party's) policy. If the third party sues the insured driver, liability coverage also covers court costs and damages that the insured driver may be deemed responsible for.

In some states, such as New Jersey, it is illegal to operate (or knowingly allow another to operate) a motor vehicle that does not have liability insurance coverage. If an accident occurs in a state that requires liability coverage, both parties are usually required to bring and/or submit copies of insurance cards to court as proof of liability coverage.

In some jurisdictions: Liability coverage is available either as a combined single limit policy, or as a split limit policy:

Combined single limit:

A combined single limit combines property damage liability coverage and bodily injury coverage under one single combined limit. For example, an insured driver with a combined single liability limit strikes another vehicle and injures the driver and the passenger. Payments for the damages to the other driver's car, as well as payments for injury claims for the driver and passenger, would be paid out under this same coverage.

Split limits:

A split limit liability coverage policy splits the coverages into property damage coverage and bodily injury coverage. In the example given above, payments for the other driver's vehicle would be paid out under property damage coverage, and payments for the injuries would be paid out under bodily injury coverage.

Bodily injury liability coverage is also usually split into a maximum payment per person and a maximum payment per accident.

The limits are often expressed separated by slashes in the following form: "bodily injury per person"/"bodily injury per accident"/"property damage". For example, California requires this minimum coverage:^[4]

• $15,000 for injury/death to one person
• $30,000 for injury/death to more than one person
• $5,000 for damage to property

This would be expressed as "$15,000/$30,000/$5,000".

Another example, in the state of Oklahoma, drivers must carry at least state minimum liability limits of $25,000/$50,000/$25,000.^[5] If an insured driver hits a car full of people and is found by the insurance company to be liable, the insurance company will pay $25,000 of one person's medical bills but will not exceed $50,000 for other people injured in the accident. The insurance company will not pay more than $25,000 for property damage in repairs to the vehicle that the insured one hit.

In the state of Indiana, the minimum liability limits are $25,000/$50,000/$10,000,^[6] so there is a greater property damage exposure for only carrying the minimum limits.

Rental coverage:

Generally, liability coverage purchased through a private insurer extends to rental cars. Comprehensive policies ("full coverage") usually also apply to the rental vehicle, although this should be verified beforehand. Full coverage premiums are based on, among other factors, the value of the insured's vehicle. This coverage, however, cannot apply to rental cars because the insurance company does not want to assume responsibility for a claim greater than the value of the insured's vehicle, assuming that a rental car may be worth more than the insured's vehicle.

Most rental car companies offer insurance to cover damage to the rental vehicle. These policies may be unnecessary for many customers as credit card companies, such as Visa and MasterCard, now provide supplemental collision damage coverage to rental cars if the rental transaction is processed using one of their cards. These benefits are restrictive in terms of the types of vehicles covered.^[7]

Maine requires car insurance to rent a car.

Full coverage:

Full coverage is the term commonly used to refer to the combination of comprehensive and collision coverages (liability is generally also implied.) The term full coverage is actually a misnomer because, even within traditional full coverage insurance, there are many different types of coverage, and many optional amounts of each. "Full coverage" is a layman's misnomer that often results in drivers and vehicle owners being woefully underinsured. Most responsible insurance agents or brokers do not use this term when working with their clients.

One common misconception in the United States is that vehicles that are financed on credit through a bank or credit union are required to have "full" coverage in order for the financial institution to cover their losses in case of an accident. While most states do require additional coverage to be purchased, some such as Pennsylvania only require Comprehensive and Collision to be purchased in addition to liability and not "full" coverage. Vehicles purchased with cash or paid off by the owner are generally required to only carry liability. In some cases, vehicles financed through a "buy-here-pay-here" car dealership—in which the consumer (generally those with poor credit) finances a car and pays the dealer directly without a bank—also only require liability coverage.

Collision:

Collision coverage provides coverage for vehicles involved in collisions. Collision coverage is subject to a deductible. This coverage is designed to provide payments to repair the damaged vehicle, or payment of the cash value of the vehicle if it is not repairable or totaled. Collision coverage is optional, however if you plan on financing a car or taking a car loan, the lender will usually insist you carry collision for the finance term or until the car is paid off. Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW) is the term used by rental car companies for collision coverage.

Comprehensive:

Comprehensive, also known as other than collision, coverage provides coverage, subject to a deductible, for cars damaged by incidents that are not considered collisions. For example, fire, theft (or attempted theft), vandalism, weather, or impacts with animals are types of comprehensive losses.

Additionally, the majority of insurance companies list "Acts of God" as an aspect of comprehensive coverage. By definition, it includes any events or occurrences that are beyond human control. For example, a tornado, flood, hurricane, or hail storm would fall under this category.

Uninsured/underinsured motorist coverage:

Uninsured/Underinsured coverage, also known as UM/UIM, provides coverage if an at-fault party either does not have insurance, or does not have enough insurance. In effect, the insurance company pays the insured medical bills, then would subrogate from the at fault party. This coverage is often overlooked and very important. In Colorado, for example, it was estimated in 2009 that 15% of drivers were uninsured.^[8] Usually the limits match the liability limits.^{[citation needed]} Some insurance companies do offer UM/UIM in an umbrella policy.

Some states maintain unsatisfied judgment funds to provide compensation to those who cannot collect damages from uninsured driver.^[9]Typically, the payout is not more than the minimum liability limits and the negligent driver remains responsible for reimbursing the state's fund.

In the United States, the definition of an uninsured/underinsured motorist, and corresponding coverages, are set by state laws. In some states it is mandatory. In the case of underinsured coverage, two different triggers apply: a damages trigger which is based on whether the limits are insufficient to cover the injured party's damages, and a limits trigger which applies when the limits are less than the injured party's limits.^[10] According to a 2009 survey by trade association Property Casualty Insurers Association of America, 29 states have a limits trigger while 20 states have a damages trigger. Another variation is whether a particular state requires stacking of policy limits of different vehicles or policies.

Loss of use:

Loss of use coverage, also known as rental coverage, provides reimbursement for rental expenses associated with having an insured vehicle repaired due to a covered loss.

Loan/lease payoff :

Loan/lease payoff coverage, also known as GAP coverage or GAP insurance,^[12][13] was established in the early 1980s to provide protection to consumers based upon buying and market trends.

Due to the sharp decline in value immediately following purchase, there is generally a period in which the amount owed on the car loan exceeds the value of the vehicle, which is called "upside-down" or negative equity. Thus, if the vehicle is damaged beyond economical repair at this point, the owner will still owe potentially thousands of dollars on the loan. The escalating price of cars, longer-term auto loans, and the increasing popularity of leasing gave birth to GAP protection. GAP waivers provide protection for consumers when a "gap" exists between the actual value of their vehicle and the amount of money owed to the bank or leasing company. In many instances, this insurance will also pay the deductible on the primary insurance policy. These policies are often offered at auto dealerships as a comparatively low cost add-on to the car loan that provides coverage for the duration of the loan. GAP Insurance does not always pay off the full loan value however. These cases include but are not limited to:

1. Any unpaid delinquent payments due at the time of loss
2. Payment deferrals or extensions (commonly called skips or skip a payment)
3. Refinancing of the vehicle loan after the policy was purchased
4. Late fees or other administrative fees assessed after loan commencement

Therefore, it is important for a policy holder to understand that they may still owe on the loan even though the GAP policy was purchased. Failure to understand this can result in the lender continuing their legal remedies to collect the balance and the potential of damaged credit.

Consumers should be aware that a few states, including New York, require lenders of leased cars to include GAP insurance within the cost of the lease itself. This means that the monthly price quoted by the dealer must include GAP insurance, whether it is delineated or not. Nevertheless, unscrupulous dealers sometimes prey on unsuspecting individuals by offering them GAP insurance at an additional price, on top of the monthly payment, without mentioning the State's requirements.

In addition, some vendors and insurance companies offer what is called "Total Loss Coverage." This is similar to ordinary GAP insurance but differs in that instead of paying off the negative equity on a vehicle that is a total loss, the policy provides a certain amount, usually up to $5000, toward the purchase or lease of a new vehicle. Thus, to some extent the distinction makes no difference, i.e., in either case the owner receives a certain sum of money. However, in choosing which type of policy to purchase, the owner should consider whether, in case of a total loss, it is more advantageous for him or her to have the policy pay off the negative equity or provide a down payment on a new vehicle.

For example, assuming a total loss of a vehicle valued at $15,000, but on which the owner owes $20,000, is the "gap" of $5000. If the owner has traditional GAP coverage, the "gap" will be wiped out and he or she may purchase or lease another vehicle or choose not to. If the owner has "Total Loss Coverage," he or she will have to personally cover the "gap" of $5000, and then receive $5000 toward the purchase or lease of a new vehicle, thereby either reducing monthly payments, in the case of financing or leasing, or the total purchase price in the case of outright purchasing. So the decision on which type of policy to purchase will, in most instances, be informed by whether the owner can pay off the negative equity in case of a total loss and/or whether he or she will definitively purchase a replacement vehicle.

Towing:

Vehicle towing coverage is also known as roadside assistance coverage. Traditionally, automobile insurance companies have agreed to only pay for the cost of a tow that is related to an accident that is covered under the automobile policy of insurance. This had left a gap in coverage for tows that are related to mechanical breakdowns, flat tires and gas outages. To fill that void, insurance companies started to offer the car towing coverage, which pays for non-accident related tows.

Personal property:

Personal items in a vehicle that are damaged due to an accident typically are not covered under the auto insurance policy. Any type of property that is not attached to the vehicle should be claimed under a home insurance or renters' insurance policy. However, some insurance companies will cover unattached GPS devices intended for automobile use.car insurance is most popular

Vehicle Repair Insurance

Auto repair insurance is different from other insurance types because it does not require that your car is damaged in a collision, or as a result of a natural disaster or vandalism. It basically covers the natural wear and tear on your car -- mechanical failures, any problems not caused by an accident. Vehicles can simply break down without any direct cause. These repairs can nevertheless be extremely costly. Auto repair insurance helps protect you against owing a big lump sum.

Auto repair insurance is often broken down into sub-categories as well. Standard repair insurance generally covers the wear and tear on your car plus breakdowns. But some companies only offer breakdown coverage, meaning they will only cover repairs brought about by breakable parts.

Clearly it’s best to be armed with knowledge when you start out looking for auto repair insurance. Ask your general car insurance provider whether your comprehensive coverage covers repairs outside the scope of accidents or natural disasters. Chances are it doesn’t. Then look in to your car’s warranty. If it’s still good, your car’s wear and tear and general breakdown should be covered. If you’re looking to forgo a warranty but still want to protect against have to shell out a large sum of money in the case of your car’s non-accident-related breakdown, auto repair insurance may make sense. But you’d have to round up the numbers and do a cost comparison.

Air Conditioner

Compressor, Compressor Clutch and Pulley, Condensor, Evaporator, Idler Pulley and Idler Pulley Bearing. The following parts are also covered if required in connection with the repair of a covered part listed above: Accumulator/Receiver Dryer, Orifice Tube, Oil and Refrigerant, Expansion Valve, POA Valve, and Hi-Low Pressure Cut off Switch.

Brakes

Master Cylinder; Power Brake Cylinder; Vacuum Assist Booster (excluding Hydro Boost system), Disc Brake Caliper, Wheel Cylinders, Compensating Valve, Metal Hydraulic Lines & Fittings.

Cooling System

Radiator; Fan and Fan Clutch; Engine Cooling Fan Motor; and Heater Core.

Engine

All internally lubricated parts contained within the Engine, including Pistons, Piston Rings and Pins, Connecting Rods, Connecting Rod Bearings; Crankshaft, Crankshaft Main Bearings, Camshaft, Camshaft Bearings, Cam Followers, Timing Chain, Timing Gears, Rocker Arms, Rocker Shafts, Rocker Bushings, Valves, Valve Guides, Valve Lifters, Valve Springs, Valve Seals, Valve Retainers, Push Rods, Water Pump, Oil Pump, Dipstick and Tube, Harmonic Balancer, Oil Pan, Timing Chain Cover, Intake and Exhaust Manifolds, Valve Covers, Engine Mounts, Cylinder Block and Cylinder Head(s) are covered if damaged as the result of the failure of a covered internal part of the engine.

Electrical

Alternator; Voltage Regulator; Starter Motor; Starter Solenoid and Starter Drive, *Front Wiper Motor, *Wiper Motor Relay and Delay Switch, Manually operated switches and Wiring harnesses, Power Window Motors (excluding Regulators), Power Seat Motor, Convertible Top Motor (excluding Regulators and Frame), Power Sunroof Motor (excluding Regulators and Frame), Power Door Lock Actuator, Power Antenna Motor (excluding mast).

Drive Axle

All Internally lubricated Parts contained within the Drive Axle, plus; Locking Hubs, Drive Shafts, Universal Joints, Constant Velocity Joints (unless failure was caused by torn/contaminated C.V. Boot) and Axle Bearings. (Oil Pan and Drive Axle Case if damaged as the result of the failure of a covered internal Part of the Drive Axle).

Steering

All Internally Lubricated Parts contained within the Steering Gear Box; Power Cylinder, Rack and Pinion Gear, and Power Steering Pump, Plus: Pitman Arm; Idler Arm; Tie Rod Ends and Drag Link; Upper and Lower Steering Column Shafts and Couplings. Steering Box & Rack and Pinion Gear Housings if damaged as the result of the failure of a covered Internal Part.

Seals and Gaskets

Seals and Gaskets are covered only in conjunction with a covered component repair. Leaking gaskets or seals are not covered and stand-alone seals or gaskets failures are not covered.

Fuel System

Electronic Fuel Injection Sensors; Control Units and Injectors; Electronic Fuel Delivery Pump and Injectors; Vacuum Pump; Throttle Position Sensors; Oxygen Sensor; and Metal Fuel Delivery Lines.

Suspension

Upper and Lower: Control Arms, Control Arm Shafts and Bushings; Upper and Lower Ball Joints; King Pins and Bushings; Stabilizer Shaft Linkage and bushings, Spindle and Spindle Supports. Front and rear suspension: MacPherson Struts; Shackle and Eye Shafts and Bushings; Torsion Bars and Bushings; Wheel Bearings and Seals.

High Risk Motorcycle Insurance

Although your motoring conviction may have been the result of a careless mistake, unfortunately it is an error which can cost you dear. Motorbike riders with convictions are seen as a high risk by providers. This is why Motorcycle insurance for convicted riders tends to be more expensive than for those without convictions.

When applying for motorcycle insurance, the information you supply allows providers to build up a picture of you and assess how likely you are to put in a claim. This in turn will determine the cost of your policy.

While you may be tempted to omit certain details from your application to keep costs down, it is vital that you are honest. Not only would your insurance be deemed invalid if you had to put in a claim, you could also end up being prosecuted for fraud.

The good news is, however, that after a conviction is spent, it can no longer be taken into account when your premium is being calculated.

Until then, you remain in a high risk bracket. This makes it all the more important for you to take steps to make sure that you are not paying more than you have to and getting the best deal possible for your circumstances.

Shop around

It is important that you don’t just accept the first quote you receive. Shopping around is essential so you are able to view a number of quotes and weigh up the best deal for you. Visiting MoneySupermarket’s dedicated motorbike insurance channel will allow you to do this. This is a particularly important tactic if you are looking for motorcycle insurance for convicted riders, as you are part of a high risk group.

Security

The more secure your bike is, the more confidence your insurer will have that it’s less likely to be stolen.

A garage or drive is ideal, but if you’re bike is likely to be kept out on the road, make sure you invest in a good lock that is Thatcham approved or Sold Secure. Immobilisers and ground anchors will also reassure providers that you are taking every measure to protect your bike.

Mileage

Limiting the amount of mileage you do each year may also bring the cost of your premium down. The less you are out on the road, the less of a risk you pose. Consider how much you will be using your bike in the year and be sure to give your insurer a likely estimate.

Riding courses

Proving that you are a good, responsible rider will reap rewards in the long run with falling premiums. You will be able to build up and protect your no claims bonus. Consider taking an advanced riding course as not only will this improve your standard of riding but it should also help the cost of your premium to drop.

Type of bike

More expensive models of bike are likely to cost more to fix or replace, and bikes with large engines will also be treated with caution by insurers. Less powerful bikes will attract cheaper premiums.

The importance of Motorcycle insurance

Whatever you do, never be tempted to try to dodge motorbike insurance. As well as being illegal, you are putting yourself and others at huge risk.

A recent clampdown on uninsured drivers saw the introduction of new legislation by the government last year. Continuous Insurance Enforcement (CIE) requires that all vehicles – whether on or off the road, must be insured by law.

It is not enough to simply keep a vehicle locked away in a garage. The only exception to this is if you have informed the DVLA that your vehicle is off the road in the form of a Statutory Off Road Notification (SORN).

Failure to do this could result in steep penalties. Not only could you get a fine of up to £1000, you could also get a court prosecution and have your vehicle clamped, seized and disposed of.

However, your premiums do not have to be unaffordable. Take advantage of MoneySupermarket’s money saving tips and get cheaper motorcycle insurance for convicted riders.

Good Car Insurance

Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy. Auto insurance provides property, liability and medical coverage.
When it comes to car insurance, many consumers face an issue at the time of making a claim because of the very many miscommunications and misunderstandings involved. The biggest being the assumption that once insurance is bought all charges in case of an accident will be borne by the insurance company. The fact is, irrespective of the plan, there will always be a charge that will have to be borne by a consumer at the time of a claim.

Firstly, it must be noted that a motor insurance policy does not covers normal wear and tear and general ageing of the vehicle, depreciation or any consequential loss and mechanical or electrical breakdown. Based on this, let us understand the different charges that are applicable at the time of claim.

Car Insurance Policy:

Car Insurance or motor insurance covers for losses that you might incur if your car gets damaged or stolen. The premium amount of your car insurance is decided on the basis of Insured Declared Value or IDV of the vehicle. If you increase the IDV, the premium rises and if you lower it, the premium reduces. It is important for any policyholder to compare various options before going for a car insurance renewal or buying a new policy.Also You should consider cheapes car insurance.

Key Benefits of Car Insurance:

Car insurance plan offers following benefits:

• Coverage against loss or damage to the insured vehicle.
• Coverage against loss or damage to your vehicle caused by accident, theft, fire, explosion, self ignition,
• Also  lightning, riots, strikes or act of terrorism, natural calamities.
• Coverage against financial liability caused by injury/death of a third party or damage to the property.
• Personal accident cover.

Why is it necessary to compare car insurance policies?

It is necessary to compare the car insurance policies as it can save a substantial amount of money and give you better coverage options. However, comparing the policies manually can be a daunting task. PolciBazaar makes it fairly easy for you. When you compare quotes here you can save upto 55% on car insurance premiums along with getting add-ons like riders and benefits on your plan. Make an informed purchase. Compare online and know your car insurance plan properly before buying.

Coverage under Car Insurance

There are primarily 3 types of car insurance -

• Third Party Liability Coverage

Third Party car insurance provides cover against any legal liability to a third party caused when you are at-fault driver. It covers damage/injury caused by you to another person/property. A Third Party Liability cover is legally mandatory in India under the Motor Vehicles Act.

• Collision Coverage

Collision coverage protects the insured financially against damage of their own car. It pays the insured for damage caused by collision which is usually an accident. Damage or loss due to theft or vandalism is not included in collision coverage.

• Comprehensive Coverage

A comprehensive coverage is extensive and includes damage of car, theft of vehicle, third party legal liability and personal accident cover. The policy coverage can be further extended by opting for add-ons like accessories cover, engine protector, zero depreciation cover, medical expenses, etc. This type of coverage is the most popular as it offers end-to-end coverage and thus less stress for the policyholder.

No Claim Bonus 

For every claim free year, the insured is rewarded with discount on the renewal premium. This discount is called - No Claim Bonus (NCB). It is cumulative and increases every year. It usually ranges from 10% to 50% and can save a substantial amount of money on your premium. 

What is not covered in Car Insurance? 

Following features are usually not covered in car insurance:

• Loss or damage if a policy is not in force.
• Gradual wear and tear of car and its parts.
• Loss or damage to vehicle when driven by person without a valid driving license.
• Loss or damage to vehicle as a result of intoxication due to drugs, alcohol etc.
• Loss or damage to engine as a result of oil leakage.
• Loss or damage to vehicle as a result of abuse of car manufacturer's guidelines.

Eligibility/Documentation Required for Car Insurance

Getting a car insured requires minimal documentation. For a new policy, you must submit the filled up proposal form and copy of the Registration Certificate (RC). For renewals, you will need copy of the RC (Registration Certificate) along with the copy of previous insurance policy.

Carefully fill in your complete details. This is an important step and will save you a lot of hassle during claim time.

The manufacture year of your car lets the insurance company assess its Insured Declared Value (IDV) that facilitates the underwriter to decide the annual premium for your car.

• CNG Fitted Car

Being more vulnerable to combustion, a CNG fitted car is usually insured at a slightly higher premium than a plain petrol/diesel car.

• Additional Covers

You need to mention whether you do or do not want to get a cover on electrical and non-electrical accessories fitted in your car. Most insurers provide a cover for your car accessories at an additional premium of 4% on its value.

Fill in these details carefully then sit back and relax for a while. You will be presented with a list of insurance plans that suits your requirement at best possible rates.

Get Discounts, Save Money, Buy Smart 

A smart customer is in a constant hunt for discounts which will reduce the burden on his pocket. If you are one among them then here are a few tips that will help you get discount and save money on premium value of your car insurance.

• Voluntary Access

Voluntary deductible is the minimum amount that you declare to bear at the time of claim. The higher deductible you opt for, the lower will be your premium. Simply put it means that the financial burden on the insurance provider is less and you will also chip in when an accident or car damage happens.

• Anti-theft Discount

In case your car is fitted with an ARAI approved anti theft device, your insurer will offer additional discount (2.5% on the OD Premium). This discount is provided for the simple reason that an anti-theft device will make your car less liable to theft.

• Privilege Membership

Members of the Automobile Association and some Professionals (Defense Personnel, Doctors and Govt. Employees) are entitled to get additional discount on their premium. So, never miss out to mention the same while searching for a quote.

While getting quotes for your vehicle at Insurance Companies, you might see for yourself how changing even minor details make a huge difference to the final calculated premium.