Car Insurance Dehradun

29/03/2024

Zero cost EMI's what does it actually mean?

🌟Loans usually charge interest, but *"No-Cost" or “Zero-Interest" EMIs* say there's absolutely no interest charged.
In the world of finance “interest-free" is a myth.
Somebody's has to pay — you, your bank or the company selling it.

🌟So who is paying?
Some companies tie up with banks to offer you a zero cost EMI and *bear the interest cost themselves.

For eg. You buy a laptop that costs ₹60000, & you pay 12 instalments of 5000, technically at "no-cost" to you.
Here the company has an agreement with the bank, wherein the the bank pays 55000/- for the laptop to the seller and the remaining 5000/- is kept by the bank as interest. (Approximate figures)

So this 5000/- is the cost borne by the company to acquire you as a customer, bank gets 5000/- as interest income & you get a no cost EMI. A win-win-win situation benefiting all.

Not all companies offer this, so make sure to study the EMI breakdown & check for hidden costs. Specially processing charges.

✅ EMIs are a good option if you don't want to make a huge payment upfront. Just be aware of what you're signing up for and don’t land up buying things just because you can afford the EMI.

P.S.- Most products which have zero cost EMI will offer discounts if you offer upfront payment.

❇️ Bajaj Finance was one of the 1st companies in India to use this concept on a large scale and probably that's why it's share price has gone up more than a 100 times in the last 12 years.

10/03/2024

30/05/2022

IRDAI has increased the motor third party insurance premium across vehicle segments.

The hike has come after a gap of two years as IRDAI did not revise the motor third party insurance rates due to the pandemic.

Every year, the insurance regulator revises premium rates taking into account the number of claims made and loss ratios for insurers. Third party motor insurance is mandatory in India.

Here is the ready reckoner that can you help you find out the current third-party motor insurance premium across vehicle segments:

04/11/2020

Car Insurance Add On Covers: Types & Benefits
Make the insurance work a lot better for you with the Add-On Cover for Car Insurance.
People who think that by taking up the mandatory Third-Party Insurance and Comprehensive Cover as a part of automobile insurance have made full proof choice need to look into the Add-on which are provided by the automobile insurance companies to protect the motorist from the scenarios which are normally excluded.
Let us discuss most popular Add-On Covers that are available

Ten Car Insurance Add-On Covers
1. Zero Depreciation Cover

While Comprehensive Insurance provides cover for both individual and third party damages. A claim is paid only after deducting the depreciation from the insured value. By taking this add-on you can be insulated from depreciation and be sure to recover the market value.

2. Engine Coverage:

Starting a stalled vehicle which has been submerged in water could result in the engine of the car being damaged. Loss arising from this is referred to as consequential loss which can be termed as a loss arising from events outside of direct loss like accidents. With an Engine Cover/ Hydrostatic cover, damages caused due to a consequential loss are covered.

3. Roadside Assistance:

This Add-on helps the motorists whose vehicles have broken down because of mechanical failure which has left the motorist stranded. One can expect assistance for minor repairs, battery restart, spare key arrangement, phone assistance, emergency fuel, minor repairing as a part of assistance to be covered.

4. Ambulance & Medical Expenses:

This Add-on covers the motorist for the cost of expenses which are incurred towards the ambulance services.

5. Rental Assistance:

The cover provides the motorist the expense that had to be bored for transporting the motorist from the place of accident to his destination. By taking this Add-on the motorist is free from any of the cost incurred for transportation as the insurance company would pay for this event.

6. Personal Accident Cover:

The advantages of having this Add-on are that the benefits under this plan are payable if the person dies in the mishap and in case of motorist suffering from partial or permanent disability and if motorist loses his hand or leg in the incident he would be eligible for the claim under dismemberment and the hospitalization expenses are also covered in this Add-on.

7. Return to Invoice cover:

With this Add-On cover, the motorist can get back the original invoice value including the registration value and the road tax paid and not just the Insured Declared Value which is the market value of cover that depreciates with time. The Return to Invoice Cover is suitable for drivers plying on the theft prone areas or drivers who undertake long distance journeys. The cover is not available for imported vehicles and is applicable for vehicles which are less than three years old.

8. Accident Coverage for Car Passengers:

This Add-On provides Lumpsum payments for the insured passengers in event of their death or permanent total or partial disability suffered during accidents. The maximum sum insured varies from insurer to insurer but typically the sum insured is around 1 lakh.

9. Daily Allowance:

This Car Insurance Add-On cover compensates the person for hiring an alternative vehicle in event of the car getting stolen or being under repair. The allowance varies from 500 to 1000 depending on the car model. The allowance is given for a period of 10 to 15 days, however motorists have to be careful about exclusions. One has to get the car repaired at a authorized garage to avail the benefit of this cover.

10. Consumables Cover:

Under this Add-On the insurance company would compensate the car owner for the nuts and bears and bearings and screen washers and engine oils and so on in event of the car getting damaged in an accident. This Add-on are normally excluded under the standard motor insurance policies.

Points to Consider before taking Car Insurance Add-On:
Premium outgo for any car depends on the car make, model and engine take etc. For a car which is already few years old it would make more sense to go for Roadside Assistance Add-On rather than going for Zero Depreciation Cover.

It is preferred for motorists residing in coastal areas like Mumbai or Chennai to go for Engine coverage than motorists who reside in the interiors.

Personal Accident Add-On would be required in the event the person does not have a separate Accidental Insurance Policy else it would result in duplication of which at best should be avoided.

It is preferable for a person who has to travel extensively and is using his own vehicle for the travel.

Also if the stretch of travel is accident prone it would be good to take Add-On Cover.

They are also more relevant for beginners who are at more risk of getting into accidents, the add-on would provide the motorists the much needed assurance about encountering any unfortunate event.

Car Insurance Add-On covers is a serious requirement which have been underestimated. Motorists have been ignorant of the advantages of these Car Insurance Add-On covers for far too long. The advantages far outweigh the costs and they provide the solutions to many of the unforeseen situations which could prove to be highly stressful for the motorists. Again the motorists need to evaluate their options which would apply to their individual case.

03/11/2020

6 Things that Determine the Cost of Car Insurance
#1 Scope of Coverage
Car insurance can be of different types based on the coverage offered. You can choose to buy coverage based on your requirements. Here are the things related to coverage which can affect the cost of your car insurance policy.
• Type of Policy
Car insurance is of two types – Third-party Liability and Comprehensive car insurance. Buying a Third party insurance is mandatory by law. However, the scope of coverage is insufficient as it does not offer coverage for damages caused to the insured car i.e. ‘own damage’. Thus, the cost is low. On the other hand, a comprehensive policy offers both – third-party and own damage coverage. Thus, the cost is higher.
• Add-ons
Add-ons are additional coverage options which can be bought only with a comprehensive car insurance policy. One can customize a car insurance policy with Add-ons. Adding each Add-on to the policy increases the cost of the insurance policy.
#2 Fuel Type
There can be a difference in the price of a car insurance policy depending upon the type of fuel the car is running on. Cars using diesel and CNG fuel types can cost more compared to those running on petrol for the same model.
#3 Value of The Car
Insured Declared Value (IDV) of a car is a primary component for calculating the car insurance premium. IDV value is nothing but the approximate current market value of a car. Thus, if a car costs more, the cost of getting it insured will obviously be more.
#4 Security Systems
The purpose of car insurance is a financial security during unfortunate incidents involving the insured vehicle. However, it does not imply that a car should not be protected with security devices at all. In fact, doing so is a good practice and is appreciated by most of the insurance companies. They give a discount on car insurance premium with anti-theft devices. Just make sure your insurer offers this discount by getting in touch with them.
#5 Memberships
Certain associations enable their members to enjoy a small discount on their car insurance premiums. One such instance is being a member of the Automobile Association of India. This association is divided depending on the geographical location. For example, Western India Automobile Association, Automobile Association of Southern India, etc.
#6 Driving History
Driving history will not have an impact if you are buying car insurance for the first time. The cost of car insurance will increase for those who have a raised a car insurance claim against their policy. However, if no claims are raised in the past, the policyholder will become eligible for a discount called as No Claim Bonus (NCB). This discount is cumulative in nature and increases with each consecutive claim-free year. NCB can reach and stay up to a 50% discount on car insurance premium and drops to zero when a claim is raised.