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Auto insurance: Frequently asked questions

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Old 12-24-2008, 02:08 AM
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Can the insurance premium on my vehicle be reduced?
December 22, 2008

A large part of your insurance premium cost is based on the IDV of your vehicle. If you maintain a claims-free record, you accumulate a bonus, which translates into discounts on policy renewal. Insurers reward policyholders for not making claims by providing a discount on the premium.
Moreover, you could avail of discounts if you are a member of a recognised automobile association. A discount of up to Rs 500 could be availed if you have installed an anti-theft device in your car that is approved by the Automotive Research Association of India.

What if I forget to renew my auto insurance on time?
A car insurance policy has to be renewed before the expiry of the ongoing term of insurance. Delay in renewing a policy and thereby driving a vehicle without valid motor insurance is illegal and there are substantial penalties.

Here are some scenarios where you will lose out:

In case the uninsured vehicle has an accident, the insurance company is not liable and you would have to bear the liabilities alone, if any
If the policy is not renewed within 90 days of the expiry date of the previous policy, the no claim bonus cannot be claimed
If the policy expires and is not renewed on time, the insurance company will insist on a physical inspection of the vehicle before granting renewal
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Old 12-24-2008, 02:09 AM
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What is no claim bonus?
December 22, 2008

Let us assume you have made no claim on your car insurance policy this year. As a reward, the insurance company grants you a discount in premium on your policy renewal. This discount is called a no claim bonus.

This bonus is offered only if the motor insurance policy is renewed within 90 days of expiry of the previous policy.

If you have made no claim in the first year, you get a bonus of 20 per cent; for two consecutive years, the bonus is 25 per cent; for three consecutive years, it's 35 per cent; for four consecutive years, 45 per cent, and for five consecutive years, the bonus is 50 per cent. The no claim bonus cannot exceed a maximum of 50 per cent.

An important fact that you must remember is that if you make an insurance claim, the no claim bonus reduces to nil on renewal. For instance, let's say that you have had three consecutive claims-free years and you availed a 35 per cent no claim bonus.

Now, in the fourth year, you have an accident and you make a claim. When you renew your policy in the fifth year, you do not get any discount; you have to pay the full premium.

Now that you know the various advantages that a motor vehicle owner can avail of isn't it time you cover your vehicle to the maximum extent possible?
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Old 12-05-2022, 03:39 PM
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In fact, if you didn't want to take out insurance, then everything could always be sadder. I believe that using high-quality insurance services with good conditions is very important. On the website http://www.iisinsurance.com/cheap-ca...ntra-costa-ca/ you can find out about the prices from my company.
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