File your Car Insurance Claim on Time

It is in the best interest of the insured always to raise the claim as soon as possible. If you file your claim at the earliest possible time, your car insurer would be able to take less time in availing you the claim amount. Requirement of various other proof documents may come up while raising the claim.

Drivers getting involved in any kind of road accident are shocked initially and it takes a moment or two for them to realise that they have actually bumped their car into somebody else’s vehicle. And, one should not expect that immediately after the accident they would go to the insurance office and raise the claim.

On the contrary, if somebody takes the prompt action of reporting the incident to the police and then to the insurance office, he deserves to be applauded because that is the right sequence of doing the things in such kind of situation. But before doing that if somebody is injured, the victim should be taken to the hospital or as suitable. Now comes the question, at what time should you file for the car insurance claim.

Time to file car insurance claim

There can be so many consequences when the person gets involved in an accident. Sometimes, the person himself gets injured and he is unable to take any action. Sometimes his car is damaged at such a level that it takes time to estimate the repair cost and at other times there are so many legal formalities that there is merely no time left to contact motor car insurance office to raise the claim. Insurers understand this, so they do not have stringent rules regarding the time frame. Since, car insurance policy is a contract and therefore it does have certain rules and regulations which also describe a reasonable time limit under which one should be able to raise the claim.

Understand your policy’s terms and conditions

The time frame to raise the car insurance claim varies from insurer to insurer. While buying the car insurance policy, one must read the documents carefully and understand each and every clause described in it. Even if you have acquired online car insurance, do not forget to read the fine print mentioned in the soft copy of your policy that mostly explains the exclusions and other vital elements relating to the contract. If you do not read it at the time of acquiring the policy, do take time to read it when you are thinking to raise the claim.

For insured’s benefit

If you regularly pay your car insurance premium on time, you may assume that you are in good books of your insurer. Of course, you will earn good name if you genuinely fulfil your responsibilities but it does not allow you to take unreasonably more time to file your car insurance claim.
It is always in the best interest of the insured to raise the claim as soon as possible. Though it does not have any extra benefits but it will also not cost you anything. However, if you file your claim at earliest possible time, your car insurer would be able to take less time in availing you the claim amount. Requirement of various other proof documents may come up while raising the claim. And you will easily be able to obtain that because it has not been long since you met with the accident. Added to this, you will not have to give explanations on being late comer to file for the claim.

The Minimum Vehicle Insurance-Third Party Insurance

Since vehicle insurance is compulsory in India, people often stick to the minimal coverage. It is cheap and provides equivalent protection. In insurance terminology, the person buying car insurance or the insured is the first party, the insurer or the insurance service provider is the second party and any other person who gets indirectly connected is the third party. Third Party insurance provides protection in case for the third party where you are guilty of an accident. It covers below mentioned liabilities:

1. Third party damages: It covers the expenses incurred by you as a compensation for damages caused by an accident to the property of a third party. In this, a financial help is given to the third party on your behalf.

2. Third party injury: It covers any bodily injury caused to the third party in an accident where you were guilty. It includes any other person on road or the one with you when you were driving.

3.  It provides you a legal and financial protection in the event of death or injury of the third party.

The minimum third party vehicle insurance generally provides cashless claims settlement. However, there are certain conditions where the insurance company is exempted from providing benefits. These are as follows:

1. Any damage to your car and/or any injury caused to you are not covered under this insurance.. In simple words, this insurance covers the third party property as well as owner of that property.

2. In case vehicle is rented or is purchased for hire.

3. In case of the damage is done because of any sport like racing or in case of speed test.

4. When the drivers do not have driving license for whatsoever reason.

5. In case the vehicle is used for commercial purpose and the owner does not have a permit for the same.

6. Car insurance policy taken gets lapse because of non payment of premium or it gets expired.

7. The third party refuses to make car insurance claims for damages.

The features of third party insurance are as follows:

1. In India, as per the Motor Vehicle Act, 1988, it is mandatory to own such insurance.

2. Minimum third party vehicle insurance is an inexpensive method and can cost as low as Rs. 100.

3. The person who purchases car insurance is the first party, the insurer is the second party and the beneficiary is the third party.

4. It does not provide any protection in case of loss to the first party as it covers only third party losses and damages.

5. The compensation from car insurance claims is always paid to the third party and not the insured.

6. Car insurance policy provides legal and financial protection.

7. Since the car insurance is a legal requirement, the amount of premium remains constant.

8. It is protection for the mistake on part of the first party.

Minimum third party vehicle insurance can be ideal for low income people like college students and young earners.

How to Get Low Cost Car Insurance

Car insurance, also known as auto or motor insurance protects you and your car from unforeseen incidents such as accidents, theft and other disasters by providing you financial protection. With a car insurance policy, you can also get protection for third parties such as your driver and your co-passengers, and their cars. A car insurance policy is therefore a great boon and gives you the peace of mind to drive without anxiety, but with responsibility. Also, car insurance is mandatory by law in India.

With so many motor insurance companies in the market, you must be at a real loss to figure out which policy and insurer to choose. You need an insurance policy that fulfills your requirements and is also cost effective. You must therefore ensure that you get the best insurance in the market at the most reasonable premium.

Factors That Determine Insurance Premium

You can always search for companies that give you cheap car insurance along with adequate benefits. However, there are various factors that affect the premium. The premium is normally dependent on factors such as:

The type of car and its cost like luxury car will have a higher premium than ordinary cars.

Most companies give a discount if there are safety and security accessories in your car.

Safe Driving- if you have been accident free for a stipulated period of time, you get a discount in the premium.

Insurance for loss of personal belongings and car locks, luxury gadgets like night vision equipment and ultrasound sensors etc. will increase your premium.

The more the amount of voluntary excess you pay after an emergency will reduce your premium.

A No Claims Bonus (NCB) will get you some discount.

How to Get a Good Insurance Policy

To get the cheapest auto insurance with the best coverage, you must do the following from your side:

Get insurance quotes from various companies and compare them

You must compare both the prices and the features

Do online research and find various auto insurance rates and quotes

Insurance portals like Easypolicy.com help you do this easily.

You must also crosscheck the information provided by the insurer on websites like Easypolicy.com

You must be truthful in all your declarations to avoid problems during the actual claim.

Get all that is promised by the insurer in writing.

Ensure that your insurance agent provides you first with the cover note. You then get the final policy document after 60 days.

Find out which company has a cashless-settlement process tie-up with which garage in your city.

Buy insurance from insurance brokers who unlike insurance agents don’t work for particular companies.

Above all, you must drive carefully and responsibly, with respect for your life as well as for others on the road. This is the best way to never have to use your insurance, or at least to bring down its usage.

Quick tips to buy car insurance online

What do you do when you want to buy car insurance but are not sure if you would land up with the best deal for you? The reality is that you could easily be taken for a ride when purchasing motor insurance – there is so much out there in the market that you could possibly not see the difference between the best car insurance and one that you would rather be without. Here is what you should know and what you could gain when you buy insurance online.

Compare insurance: One of the main advantages of being connected to the World Wide Web is that you are not alone in your search. The power of the internet is many times more powerful than a whole bunch of retailers put together – remember not to overlook this ability. It is much easier and realistic today to look out for online insurance than what it was a few years ago, when the industry was in its infancy,trying to figure out what the internet had in store. The most important part in your
search for the best deal is to spend some time – online.

Provide the right information: When you are dealing with the world of virtual reality, you need to be sure that you have the right information on hand, and are willing and able to provide with the facts as may be required. Insurers tend to look favourably upon people who have not had insurance claims, or those who could be categorised as being low-risk drivers. You may also want to have your Vehicle Identification Number, Registration number, make and model details handy as you try
to crack the code of car insurance online.

Do not rush: Whether you are on the road commuting to work or you are online,trying to secure your motor insurance, there is one rule that you should follow – do not wait for the eleventh hour. When you rush, you miss out. Take your time, shop around, and compare insurance. The advantage of buying insurance online is your ability to seek out the right information. Plan in advance before your policy is due for renewal and compare car insurance to see what is on offer and how you could make the most of it all.

Be informed: In an era of internet and instant connectivity, information is the key.And there is so much information available online these days, at the click of a button that you would only have to be intent on getting them all in place to make a decision.Find out about the insurance claim, get information on your rights and responsibilities, and get to know the motor insurance industry better. As always,
knowledge is power.

3 Ways to Buy Car Insurance

Here discussed are the basic car insurance that would provide you coverage against various risks. Also discussed are what you can expect from a car insurance cover and which of these would fit your coverage needs.

Buying car insurance policy is mandatory under the India Motor Tariff act and you need to renew it every year. But, before you buy car insurance you need to make sure

1) You know your coverage needs

2) Understand your liability in case you file a claim 

3) Have done an online comparison to ensure you get the best deal

Your Coverage Needs

Let’s understand what you can expect from a car insurance cover and which of these would fit your coverage needs.

Basic car insurance would provide you coverage against the risks like -

1)   Damage to your own car or third party property / person during an accident

2)   Car theft

3)   Damage to your car because of man-made calamities like terrorism, riots or due to a malicious act

4)   Loss or Damage to your car due to natural calamities like fire, explosion, lightning, earthquake etc.

5)   A personal accident cover which would provide a fixed sum to the driver of the car, in case of an accident which leads to death or disability.

Apart from the basic insurance cover, if you are looking for additional protection for your car, you can opt for riders like -

1) Zero depreciation cover – This allows you to avail full reimbursement of cost, or replacement of damaged parts, without any depreciation deduction.

2) Extend personal accident cover to Co-passengers – The personal accident cover which normally covers just the driver can be extended to include co-passengers as well.

3) Spare Car Cover – A spare car cover would allow you to get reimbursement or daily cash benefit to cover the cost of hiring an alternate mode of transport.

Your Liability When you File a Claim

Your personal liability would depend on the insurance cover you have brought. There are four things that would influence your liability when you file a claim.

Deductible

When you file for a claim, a certain minimum amount has to be paid by the insured and it depends on the car you own. For a private car less than 1500 cc, the minimum deductible is Rs 1000, while for a private car above 1500cc, the deductible is Rs 2000.

Voluntary Deductible

A few people who are confident about their driving skill and intend to keep the insurance premium low opt for a voluntary deductible. The voluntary deductible is in excess of the compulsory deductible that the insured agrees to pay while he files for a claim.

Depreciation Value

The insurer pay for the current market value of the parts as calculated by applying depreciation on those parts. So, the insured will have to pay the difference between the replacement value and the depreciated value of the part.

No Claim Bonus

While filing for a claim, you need to make sure that the amount you are looking to claim is reasonably big, as there is hidden cost attached to filing a claim. The hidden cost is nothing but a No Claim Bonus (NCB).

What is No claim bonus (NCB)

 

No claim bonus is the discount on the future premium payments, which the insurance holder receives from the company for a claims-free year. In case of car insurance policy,  you can enjoy getting discount in your next premiums as per the terms and conditions  mentioned in the insurance plan you opted for.

The concept is simple, car insurance generally provides cover against damages to the insured vehicle and third party claims.

No claim benefit in motor insurance is applicable as long as insurance claim is not made.  After the claim is made, the benefit of no-claim benefits is back to null. This explains that the policyholder will have to make higher payments for premiums because he/she won’t be  eligible for policy premium discounts under no claim bonus scheme.

Though, as per the latest offers made by insurance companies in this field, a policyholder  can still enjoy saving 20 per cent of no claim discount even after claiming the insurance  amount. To avail this benefit, the insurance holder needs to take an add-on cover plan to  protect the benefit of no claim bonus.

If you own a four-wheeler vehicle insured, then the amount of bonus being offered on not  claiming coverage begins in the second year from 20% and can go up to 50% till the sixth  year. All the insurance companies have same rates for the bonus amount on not claiming.  The best way to save money during an insurance policy is to estimate the money you will  need to spend in repairing and compare it with estimated discount you will get through no-  claim benefits in upcoming years. If the amount of discount is higher, you should prefer to  get the damage repaired by yourself instead of claiming for insurance premium and enjoy
getting excellent benefits of no-claim discounts in your policy.

Trim Down the Cost of Car Insurance

There is a lot of talk about cheap car insurance. Budget conscious as we all are, we are tempted by it. There are ways you can reduce car insurance premiums substantially.

Have you ever thought that you could have got a better deal in terms of premium and the cover provided? Think about it. You might be paying a lot more than you need to or you might get a better vehicle insurance cover. Check and compare with what you have and what could be better. Trim down the cost of car insurance.

Type of Insurance: Premium varies with the level of insurance you choose for the car. Liability only policy is mandatory as well as the cheapest. It is fixed for a particular vehicle. Comprehensive vehicle insurance policies are expensive but the cover includes liability as well as damage to own car.

Get Quotes and Compare Prices: Getting quotes from various companies was a tedious task. With online insurance comparison channels, it has become much easier to get quotes, compare prices and have policy features at a glance. You will find that the rates offered by different companies for the same car are different.

Reasons for price difference can be many. Check if the difference is due to some added features and if those additional features are important to you. The difference may also be due to the discounts offered by different car insurance companies to specific car brands.

Avail the No Claim Bonus: If you are a safe driver and have not made a claim on your vehicle in the past policy year(s), you are entitled to premium discounts called the no claim bonus. It can be from 20% to 50% of the own damage part of the premium depending upon the number of claim free years.

If you are planning to change your insurance company, you can transfer your no claim bonus to it. You can even transfer the no claim bonus accumulated over your old car to your new car when you sell the old car.

Voluntary Deductible: Voluntary deductible is the repair cost that the policy holder decides to pay in case a claim arises. Insurance policy settles the claim after deducting this amount. Opting for voluntary deductible reduces the premium. There is a compulsory deductible amount you will have to bear in any case. Opt for the voluntary deductible amount that you can comfortably bear.

Choose the Add-on Covers Wisely: There are a lot of add-on covers available in with the car insurance companies. Although all of them are very beneficial, they add to the cost. Also see which accessories you want to get covered. Including accessories in the cover will increase the premium.

For a new car you may want to buy a full featured insurance but needs change over the time and you may want to discontinue some of them. So, it is better to spare a thought to which added features you actually require.

Other Discounts: you are entitled to discounts if you have installed anti-theft devise approved by ARAI or you are a member of a recognized automobile association.
Once you take care of these things, you will either be able to get cheap car insurance or get a better deal for the same amount.