Why Buy Insurance for Your Hatchback?

There are several compelling reasons why hatchback owners must buy car insurance:

• It is Legally Mandatory

According to the Indian Motor Vehicles Act, having valid third-party liability insurance is mandatory for all vehicles plying on public roads. Driving uninsured can attract hefty fines.

• Covers Liabilities Towards Others

Your policy will cover bodily injury or property damage liability claims towards third parties arising due to accidents involving your hatchback. This protects you from a heavy financial burden.

• Protects Against Own Damage

Comprehensive policies also cover your hatchback against damage or theft. This avoids high repair bills and maintains your hatchback’s resale value after an accident.

• Additional Covers Through Add-Ons

You can enhance your coverage by opting for add-ons like zero depreciation, engine protector, NCB protection, etc. as per your needs.

Cashless Garage Repair Facility: Insured hatchbacks enjoy cashless servicing at authorized garages in the insurer’s network. This is convenient compared to upfront payments and later reimbursements.

What Does Hatchback Car Insurance Typically Cover?

Hatchback insurance policies offer the following standard types of coverage,

• Third-Party Liability Cover

Mandatory cover against legal liabilities arising due to the death/disability of third parties or damage to their property.

• Own Damage Cover

Optional cover for financial losses incurred due to theft of your hatchback or damage to it due to accidents, floods, earthquakes, etc.

• Personal Accident Cover for Owner-Driver

Provides compensation for loss of life, disabilities, or injuries sustained by the hatchback owner driving at the time of the accident.

• Add-On Covers

Additional protection like zero depreciation, engine protector, NCB protection, roadside assistance, etc.

Read More- Don’t Let Your Car Insurance Claim Get Rejected: Here’s What You Need to Know

What is the Average Hatchback Car Insurance Premium?

The hatchback car insurance premium depends on factors like Insured Declared Value (IDV), cubic capacity, geographical zone, fuel type, tenure, NCB, etc.

For instance, the approx. premium for a petrol Tata Tiago hatchback with IDV of ₹5 lakhs for a Zone A metro city will be:

Own Damage: ₹1,854

Third Party: ₹10,640

Add-Ons: ₹1284

GST: ₹2,480

Total Premium for 1 Year: ₹16,258 (approx.)

Do compare quotes online to find the most affordable premium convenient for your budget.

Premiums depend on the hatchback’s IDV, cubic capacity, RTO location, coverage opted, NCB, etc. Online quotes offer the best hatchback premium rates.

How Can You Save Money on Hatchback Car Insurance Premium?

Here are some smart tips to reduce your hatchback insurance costs,

• Opt for higher voluntary deductibles under your own damage cover
• Choose only essential add-on covers
• Pay premium in one go to enjoy discounts
• Maintain No Claim Bonus to get discounts up to 50%
• Install anti-theft devices to get discounts
• Compare quotes online and buy at least 15 days before the policy expiry

How to Make a Car Insurance Claim?

Making a car insurance claim due to an accident or damage to your insured hatchback is fairly straightforward:

Intimate insurer – Inform the insurer immediately about the loss by calling the helpline or through an online portal.

Damage assessment – The surveyor inspects damages and prepares a detailed assessment report.

Submit documents – Duly filled claim form, RC copy, driving license, and other details sought by the surveyor.

Claim processing – Insurer verifies details and either settles claim with cashless garage or reimburses insured if expenses are already paid.

Following due processes without delay facilitates speedy claim approval and disbursal. Maintaining transparency regarding policy details is important.

Why Buy Insurance Online?

Buying hatchback insurance online directly from insurer websites offers many advantages,

• Wider choice of insurers and ability to compare their premium quotes
• Customized policy with optimal covers and add-ons
• Discounted premium rates exclusively for online purchases
• Paperless purchase and claims process for convenience
• Ability to modify or renew policy with a few clicks

Thus, those buying a hatchback must compare online quotes smartly and purchase a suitable hatchback car insurance policy online offering adequate financial protection at a low premium.

The post <strong>The Essential Guide to Hatchback Car Insurance Coverage & Costs</strong> appeared first on Blogs - Policyplayer.

• Protect Your Engine from Water Damage  

During monsoons, engines are extremely vulnerable to water damage. Heavy downpours can lead to water ingress in the engine compartment. It can short-circuit electrical components like the alternator, spark plugs, and distributor. Prolonged accumulation of water can also lead to rusting and corrosion of critical engine parts. An engine protection cover is a must-have because it acts as a waterproof barrier, preventing rainwater from directly entering the engine bay. This minimizes the risk of expensive electrical and mechanical damage.  

• Ensure Proper Fit and Installation  

The engine cover should fit your car model properly without sagging or allowing gaps for water to sneak through. Refer to size charts and customer reviews to pick the right-sized cover. When installing it, carefully follow the instructions to securely fit the cover above the engine compartment. Fasten any flaps, stretch cords, or straps tightly as recommended to prevent the cover from flying off at high speeds. Take care not to rub the cover against paintwork to prevent scratches. Always visually inspect after installation to ensure proper coverage with no openings. The improper fitting can defeat the purpose of the cover.

• Inspect and Maintain the Cover  

Don’t just install the engine cover and forget about it. Periodically inspect it for any tears, holes or wear and tear. Also, check if it remains securely fitted as time goes by. Any big openings or loose fit will allow water seepage. Make sure to repair small holes or tears right away with fabric glue or tape. You can also apply waterproofing sprays on the cover for added protection. Follow any washing instructions given to keep the cover clean. Proper inspection and maintenance will improve its durability. 

Read More- Don’t Let Your Car Insurance Claim Get Rejected: Here’s What You Need to Know

• Get Covers for Other Components  

While engine covers are extremely useful, also consider getting covers for other important mechanical and electrical components like air filters, batteries, ECU, under chassis, etc. The more components you can protect, the better off your car insurance will be in heavy rains. Combine the engine cover with dedicated covers for gears, sensors, fuse boxes, ignition coils, etc. based on your car’s layout and vulnerability. Though this may cost more upfront, it minimizes monsoon damage risks.

• Practice Other Monsoon Car Care Tips  

While engine covers are great, keep in mind that they are just one part of overall monsoon car care. You also need to check wiper blades, brake pads, tire treads, headlights, and all fluids before the rains hit. Only drive through standing water if absolutely unavoidable, and cross slowly to avoid engine flooding. Always keep the fuel tank full to prevent condensation buildup. Park indoors when possible. And if water ingress does occur in the cabin, dry it out fully to prevent mold. Employ these tips along with the engine cover for maximum protection.

Adding insurance cover add-ons to protect your car during monsoons

1. Engine and Gearbox Protection protects against flood damage to expensive engine parts. This add-on covers repair or replacement costs resulting from waterlogging which can otherwise be very costly.
2. Zero Depreciation add-on compensates for the full cost of repairs or damaged part replacement without depreciation deductions, except for 50% depreciation on tires, tubes, and batteries. This protects against accident expenses in hazardous monsoon conditions.
3. 24×7 Roadside Assistance provides immediate on-spot repairs, towing services, and transportation arrangements in case of breakdowns or other emergencies during monsoons when getting help can be difficult.
4. Consumables add-on covers expenses like engine oil, nuts, bolts etc. that may need replacement after flood damage but are excluded under standard insurance as wear and tear items.
5. Daily Allowance add-on compensates for rental car costs up to a fixed daily limit if your car is immobilized and undergoing repairs. This provides alternative transportation when your car is out of commission.

Read More- Don’t Let Policy Updates Catch You Off Guard: Here’s What You Need to Know

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However, it’s important to note that not all car insurance claims are approved by insurers. There are several reasons why a claim may be rejected, leaving you to bear the burden of expenses on your own. 

By understanding these common reasons for Car Insurance Claim rejection, you can take proactive steps to avoid them and ensure a seamless and hassle-free claims settlement process.

1. Delay in Claim Intimation

One of the primary responsibilities after an incident is to inform your car insurance company about the loss or damage within their specified time frame. Most insurers require an intimation within 48 hours or 7 days following the incident. Failing to meet this requirement may result in claim rejection based on delay grounds.

2. Fraudulent Claims

The foundation of any insurer-insured relationship relies on mutual trust and honesty. Attempting to make false or exaggerated claims or intentionally causing damage to your vehicle constitutes fraudulent behavior that will lead to claim rejection by the insurer. In severe cases, legal action may also be taken against you.

3. Driving Under the Influence (DUI) – Alcohol/Drugs

Driving under the influence poses severe risks as it impairs judgment and increases accident probabilities significantly. If involved in an accident while under the influence of alcohol or drugs, your claim will be rejected as it violates policy terms and conditions.

4. Driving Without a Valid License

Operating a vehicle without a valid driving license is both illegal and against policy terms and conditions set by car insurance providers. Whether it’s expired, suspended, revoked licenses, or unlicensed drivers behind the wheel; insurers will reject any related claims due to unauthorized driving.

5. Modifying Your Vehicle without Informing Insurer

Any modifications made to your vehicle such as changing engines, adding alloys, or installing accessories must be reported to your insurer. This is because modifications can impact the value, performance, and risk profile of your car. Failing to inform your insurer about these modifications may result in claim rejection due to misrepresentation or concealment of material facts.

6. Using Your Car for Commercial Purposes

Unless you have a commercial vehicle insurance policy, your car insurance coverage generally applies only to private usage. Conducting commercial activities such as transporting goods or passengers for hire or reward without the appropriate policy breaches terms and conditions. Consequently, insurers will reject any claims resulting from unauthorized use.

7. Exceeding Policy Limits

Car insurance policies include specific limits on coverage amounts, deductibles, exclusions, etc. If you surpass these limits during an incident or accident claim submission, the insurer will either reject the claim entirely or pay out only up to the limit specified in your policy.

8. Breaking Traffic Laws

Engaging in risky behavior such as speeding, jumping signals, and driving on the wrong side of the road increases accident risks significantly while also violating traffic rules and laws. If it is found that you were breaking traffic laws at the time of an incident leading to an Car Insurance Claim, it will likely be rejected by insurers.

9. Being Dishonest on Your Car Insurance Application

When applying for car insurance coverage, it’s crucial to provide accurate and complete information regarding yourself including your driving history as well as details about your vehicle(s). Failing to disclose incidents such as previous claims or accident convictions constitutes fraud by misrepresentation or non-disclosure which insurers will not tolerate leading them to refuse Car Insurance Claim based on fraudulent behavior.

10. Making Fraudulent Claims

Making deceptive claims with intentions to deceive or cheat insurers for financial gain is considered a grave offense within the car insurance industry.

Examples of fraudulent claims include 

• Claiming damages that occurred before purchasing a policy
• Claiming damages caused by events not covered under policy terms
• Inflating damages beyond actual repair costs, claiming pre-existing injuries or damages, and 
• Claiming stolen items not present in the vehicle. 

Insurers will promptly detect and reject fraudulent claims while potentially canceling your policy, blacklisting you, and pursuing legal action.

Read More- 6 Essential Things To Know About Your Comprehensive Car Insurance Plan

The post <strong>Don’t Let Your Car Insurance Claim Get Rejected: Here’s What You Need to Know</strong> appeared first on Blogs - Policyplayer.

They provide comprehensive protection for your vehicle against a wide range of risks, including theft, fire, natural disasters, and accidents. 

However, it is essential to understand the policy and its benefits to ensure you get the most out of it. 

In this article, we will explore important things to know about the comprehensive car insurance plan.

What Is A Comprehensive Car Insurance Plan?

As the name suggests, a comprehensive car insurance plan provides coverage for a wide range of incidents that can damage or cause loss to your vehicle. 

It is an all-in-one policy that offers protection against theft, natural disasters, accidents, and other unforeseen events that can damage your car. 

In addition, this policy offers coverage for third-party liability. This means that it covers damages to other vehicles or property caused by your vehicle.

What Does A Comprehensive Car Insurance Plan Cover?

A comprehensive car insurance plan covers a wide range of incidents, including:

Theft: If your car is stolen, a comprehensive policy will provide coverage for the cost of replacing your vehicle.

Natural Disasters: Natural disasters like floods, earthquakes, and hurricanes can cause significant damage to your vehicle. A comprehensive policy will cover the cost of repairing or replacing your vehicle in case of such events.

Accidents: A comprehensive policy covers damages to your car in case of accidents, regardless of who is at fault.

Vandalism: If your car is vandalized, a comprehensive policy will cover the cost of repairs.

Fire And Explosion: In case of fire or explosion, a comprehensive policy will cover the cost of repairs or replacement of your vehicle.

Third-Party Liability: A comprehensive policy also covers damages caused to third-party vehicles or property.

What Are The Benefits Of A Comprehensive Car Insurance Plan?

A comprehensive car insurance plan offers several benefits, including:

Complete Protection: A comprehensive policy provides all-around protection for your vehicle against a wide range of incidents, ensuring peace of mind while on the road.

Third-Party Liability Coverage: In addition to covering damages to your vehicle, a comprehensive policy also covers damages caused to third-party vehicles or property.

Customizable Options: Many insurance providers offer additional coverage options that can be added to your comprehensive policy, such as roadside assistance, zero depreciation cover, and personal accident cover.

Reduced Financial Burden: With a comprehensive policy, you can avoid the financial burden of paying for repairs or replacement of your vehicle in case of unforeseen events.

Better Resale Value: A car with a comprehensive insurance policy has a better resale value compared to a car without insurance or with only basic insurance coverage.

6 Important Things to Know About Your Comprehensive Car Insurance Policy

1. Compare Comprehensive Car Insurance Plans Online

When purchasing comprehensive car insurance, it’s crucial to compare different plans available in the market. 

Many online insurance comparison websites allow you to compare policies from different insurance companies. 

Not only that but also they provide you with an overview of the coverage, deductibles, premiums, and exclusions. 

This way, you can select the right policy that provides adequate coverage for your vehicle at an affordable price.

2. Comprehensive Coverage

A comprehensive car insurance policy provides complete protection for your vehicle against damages caused by natural disasters, theft, vandalism, and accidents. 

It also covers third-party liabilities, including damages to property or injury to the third party. 

However, it’s important to note that the policy may not cover certain exclusions such as intentional damage, racing, or driving under the influence.

3. Extend Your Coverage With Additional Covers

Many insurance companies provide additional covers that you can add to your comprehensive car insurance policy. 

For instance, you can opt for personal accident cover, engine protection cover, zero depreciation cover, or roadside assistance cover. 

These add-ons can enhance your policy’s coverage and provide additional protection for your vehicle and yourself in case of an accident or breakdown.

4. Advantage Of No Claim Bonus Reward

One of the significant advantages of a comprehensive car insurance policy is the no-claim bonus reward. 

The no-claim bonus (NCB) is a reward given by the insurance company for not making any claims during the policy period. 

The NCB discount can range from 20% to 50%, depending on the number of consecutive years without any claims. 

This discount can significantly reduce your insurance premium during renewals and save you a considerable amount of money in the long run.

5. Timely Renewals Are Necessary

Renewing your comprehensive car insurance policy on time is essential to ensure uninterrupted coverage for your vehicle. 

Most insurance policies have a grace period of 30 days after the policy expiration date, during which you can renew your policy without losing any benefits. 

However, if you fail to renew your policy during this period, you may have to undergo the entire insurance process again, including vehicle inspection and document verification.

6. Availability Of A Cashless Repair Facility

Most comprehensive car insurance policies provide the facility of cashless repair. So, you don’t have to pay anything for the repairs of your vehicle in case of an accident. 

The insurance company pays the repair expenses directly to the garage, and you can drive your vehicle out without any hassle. 

This facility is available at the network garages authorized by the insurance company. So, make sure to check if your garage is on the list before purchasing the policy.

Read More – How Does No Claim Bonus Impact Your Car Insurance Premium?

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Benefits Of NCB (No Claim Bonus)

There are many benefits of NCB in car insurance and we have listed some of the most important ones below:

Lower Premiums 

The most obvious benefit of NCB is lower premiums. You will be able to get a much lower premium than what the market would have otherwise offered you. 

This option will also help you save money on your monthly bills as well as give you more time to make other arrangements for paying them off (such as loans).

Transferable to another car/insurer

As long as the policyholder remains constant, a no-claims bonus can be transferred to another vehicle when purchasing or selling one’s car.

NCB is transferable from one insurer to another if you’re planning on renewing your policy with the same company. However, an NCB Certificate from the existing insurer must be shown before it can be transferred.

Higher savings

The more you drive without making a claim on your insurance, the higher your bonus.

If you don’t file a claim in five years and renew your car policy on time, it’s possible that the company will give you a significant discount on the next renewal.

Why Car Insurance No-Claim Bonus (Ncb) Is So Important?

A No Claim Bonus is a significant factor in car insurance since many drivers end up spending a lot of money on comprehensive coverage throughout the life of their vehicle. 

The more the premium, the higher the car value. The No Claim Bonus is a significant feature for every four-wheeler owner because it helps to lower premiums.

Why Do Insurance Companies Use No-Claims Bonus When Setting Premiums?

After a year of driving safely with no accidents, you are ready to renew your car insurance policy.

Your insurance company appreciates the fact that you haven’t filed a claim and has rewarded your diligence by offering you lower premiums.

When you renew your insurance policy, the company may offer a discount for having been a loyal customer. This is known as loyalty insurance (or car/bike insurance NCB).

No Claim Bonus Add-on

No claim bonus is the reward that your car insurance company gives you when you have an accident-free period. After purchasing this add-on, you will be able to receive your No Claim Bonus discount even if you have made a claim.

This add-on pays for a fixed number of claims, regardless of the cost; this does not affect your no-claims bonus. People who drive safely and follow the rules with their car should buy a No Claim Bonus add-on cover, as it will ensure that they don’t lose any of their accumulated NCB due to an unfortunate rare accident.

No Claim Bonus Calculator

After understanding what an NCB is in insurance terms, the next big question is – how much does it cost?

There are several formulas for determining your car’s No Claim Bonus.

Many insurance companies make it easy for their policyholders to calculate the amount of No Claim Bonus they will receive by providing them with online calculators.

The company will usually start to raise your rates at the beginning of the second year of a policy.

In India, no claim bonus for four-wheeler insurance is generally calculated in the following way: 20% of the insured sum is payable at one time if there are no claims during the first year. An additional 5% will be added to NB each succeeding with every renewal period until it reaches 50%.

The post How Does No Claim Bonus Impact Your Car Insurance Premium? appeared first on Blogs - Policyplayer.

If you have no idea how the calculation works, read this article to calculate vehicle/car insurance premium online calculator.

What is a Vehicle Car Insurance Premium Calculator?

The car insurance premium calculator is an online tool provided by the insurance company. A premium calculator is available on the official websites of almost all reputable motor insurance companies.

Using the car insurance calculator, you can figure out how much you need to pay for your car insurance policy and premium.

To use the car insurance calculator, merely enter some basic information about yourself, including the policyholder’s name, contact information, and address, followed by some standard details about the vehicle you’re insured for.

In addition to these details, the car manufacturer’s name, model number, year of manufacture, car subtype, fuel type, and registration date are all required to calculate. However, several companies also offer the option of installing the accessories inside your vehicle.

After that, simply click on the “calculate premium” button and the quote will appear immediately. So, you can make a payment to buy the car insurance of your choice.

How to calculate vehicle car insurance premium online calculator?

The following formula will help you better understand how car insurance premiums are calculated.

Premium = Own Damage Premium – (No claim bonus + discounts) + Liability Premium + Cost of Add-ons

How to Use a Car Insurance Calculator Online?

The car insurance calculator helps you calculate the premium online and compare policies from different insurance companies. Using this option, you can evaluate the options available and narrow down on the plan that meets your needs.

Premium Calculation for Used and New Cars

A car insurance company calculates its premium according to its own set of parameters. The following factors are generally taken into account by most insurers.

Premium calculator for used cars

The online car insurance calculator helps you find the best auto insurance policy for your vehicle transparently and conveniently. 

Using the used car insurance calculator tool, you can calculate the premium for your vehicle in just a few seconds.

Here are the details you will need to provide to calculate the used car premium:

• Type of car
• Fuel type
• Details regarding the change in ownership

• Claims for previous years, if applicable
• Details of the existing car insurance policy
• Registration number of the car

Premium calculator for new cars

Using the new car insurance calculator tool, you can compare the top car insurance companies and their policies in a few easy steps. 

A new car owner can use it to narrow down the best auto insurance policy for their needs.

To calculate the premium for an insurance policy for a new car, you would need to provide the following details:

• The name of the car manufacturer

• Personal details of the owner-driver
• The model of the vehicle
• Year of manufacture
• State of registration of the vehicle

Benefits of a Car Insurance Premium Calculator

Car insurance premium calculators are easy to use and produce quick results.

By using it, you can benefit from hassle-free and paperless policy purchases from the comfort of your home.

One of the key advantages of using a car insurance calculator tool is that you won’t be influenced by insurance agents. 

Moreover, you can adjust the variables in the calculator tool to see how the premium changes. And, this tool helps you understand the nuances of the plan when buying the policy so you can make the right decision.

Factors Affecting Car Insurance Premium

There are several factors that affect vehicle/car premium insurance, so take a look at the following elements before you finalize your plan,

Type of Policy 

It is important to remember that the type of policy you choose will affect the premium you pay for your car. Comprehensive insurance provides more coverage than third-party plans, so it is more expensive.

How Old is Your Vehicle?

Older vehicles have less value than new ones, so insurance rates for old vehicles are lower than those for new ones.

The Vehicle’s MMV

MMV refers to the make, model, and variant of your four-wheeler. Your vehicle’s or car’s value is determined by these three factors, which affect the premium price as well.

Add-Ons

The more coverage a policy offers, the more it will cost. Depending on your needs, you can select as many add-ons as you wish.

Tenure of Policy 

According to recent guidelines, you can insure your car for 3 years. A longer tenure requires you to pay the premium in a lump sum, which may appear more expensive.

Fuel Variant

Due to the higher cost of diesel vehicles, insurance coverage for a diesel vehicle is more expensive.

Your Location

In a metropolitan city, roads are much more congested, which increases the probability of an accident. Therefore, the premium rate in a metro city is higher than in a Tier-II or Tier-III city.

Deductible

A deductible is an amount that you pay yourself as part of a claim. To lower your car insurance premium, choose a higher deductible one. By adjusting the deductible value, you can bring the premium to a level within your budget.

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