Month: February 2018

When you buy a car insurance policy, which is mandatory by the way, you believe that you are covered against all odds. Since you have paid a hefty premium you get the notion that your insurance policy would cover you for all the possible contingencies which might strike. Right?

Wrong!

You should read the fine print of your car insurance policy. While it is true that your car insurance policy provides a comprehensive cover, there are some specific instances which are not covered. Surprised? Don’t be. There are limitations on your insurance coverage which are called exclusions and you should pay attention to them to prevent future surprises. To make your work easier, here are 7 common exclusions which you would find in all car insurance policies –

#1 Driving under the influence of alcohol and/or drugs

How many times have you been warned not to drink and drive? Even if you escape the notice of the police, you cannot escape the rejection of your claim in case of any consequential accidents. Accidents faced when driving under the influence of alcohol and/or drugs are excluded from coverage. Since you are committing a legal offence, don’t expect your insurance policy to pay for your crimes.

#2 Driving without a valid driving license

A driving license is mandatory to drive a vehicle, right? Though all of you know the rule, it is ignored by many. The consequence – if you face any accident and claim for it, you would be denied coverage. The insurance company first checks the driving license when a claim is made. If you are unable to produce a valid driving license bid goodbye to claim settlement.

#3 Accidents outside the geographical boundaries of India

Your car insurance policy, however comprehensive it might be, covers you only on Indian roads. If you are driving outside the Indian subcontinent and face an accident, any claims made would not be valid. You would have to foot the expenses yourself.

#4 Consequential losses

Though the damages suffered by your car are covered under a comprehensive car insurance policy, any consequential losses are excluded. Consequential losses are losses which result from your actions or the actions of any third party. They are not due to any natural or man-made disasters which are covered in the policy. For instance, if your car gets stuck in a water-logged area and you try to crank it up to start, you might cause a hydrostatic loss to the engine. This loss damages your engine which needs to be repaired or replaced. Since the loss was not due to flooding but due to your action to start the car, it is called consequential loss and excluded from coverage.

Read more about  How to drive safe in monsoons

#5 Normal wear and tear and depreciation

The normal wear and tear of your car and its parts are expected losses which accrue due to usage. These losses are not covered by your policy. That is why, when you make a claim, the insurer deducts the relevant depreciation from the repair costs and then pays the remainder.

Read more about 10 items to build your car emergency kit

#6 Violation of guidelines as to the usage of the vehicle

The car manufacturer lays down guidelines for the usage of the car. If you do not follow these guidelines and as a result of which you suffer damages you would not get the settlement of your claim.

#7 Claim on a lapsed policy

A car insurance policy is a one-year contract which needs annual renewals. If you do not renew the policy within the due date, the policy lapses. When the policy lapses your coverage ceases. Any claim which is made subsequent to such a lapse is, obviously, not honoured.

Read more about 5 consequences of driving without car insurance

So, these are the most common exclusions which you can find in a car insurance policy. Beware of this list and keep them in mind so that when your insurer rejects your claim on any of these grounds you wouldn’t be shocked or cry foul.

Read more about Car insurance terminologies you should know

Read more about Types of car insurance and their benefit

Car owners usually get confused about the car’s IDV when going for an insurance policy purchase. IDV or the Insured Declared Value is an important element when you are buying a car insurance. Hence you need to have adequate information about it to buy the best protection for your four-wheeler.

What is IDV?

IDV is the maximum amount you get from the insurer in case of a total loss or theft. This sum is decided during the initial phases of the car insurance buying process. Usually, the IDV amount is decided according to the overall market value of the car. 

For instance, if the invoice amount is Rs. 6 Lakhs, then, the below is the amount claimable as compensation if the car is stolen or damaged beyond repair:

1 – For 1st year the IDV will be 95% of this amount

2 – For every subsequent year, the IDV reduces by 10%

How it impacts premium?

The IDV value of your insurance directly impacts the premium. Higher IDV leads to a bigger premium amount, as you get more cover for your car. Similarly, a lower IDV lowers the premium payable. This is the reason why experts suggest a careful calculation of IDV by keeping the car’s age and current market value in mind.

What happens when you keep it too low?

To keep the premium amount low, many car owners try to keep IDV as low as possible. However, this won’t be advisable. Keeping the IDV too low can sometimes backfire in case of theft or total car loss. 

In the worst case scenario, a low IDV can limit you from getting effective compensation for your loss. You will end up in loss even with the insurance as the compensation might not be adequate enough.

What happens when you keep it too high?

Going too high with the IDV is also a problem. The whole point of getting an insurance for your car is protecting yourself from a loss. But a very high IDV way beyond the market value will also be a loss-making proposition for you as a car insurance policyholder. Your premium amount would go way higher than what the car actually requires. Some policyholders also keep the IDV very high thinking that when they are selling the vehicle, this factor will help fetch a higher price for the used car. However, this is not true.

What should be the ideal amount?

The ideal amount of your IDV should be aligned with the current market value of your car. Try keeping the value as near to the market value of your car as possible. This way, you can keep yourself away from going too low or too high with Insured Declared Value. 

Also, remember that the age of your car also decreases the required IDV. The older your car gets, the lesser IDV is should get.Calculating the correct Insured Declared Value for your car is critical. But, you need to be very clear about the scenarios before making your final decision.

To sign off, if you are thinking about increasing your car’s Insured Declared Value, evaluate the current market value first. Try to match that and you will find the perfect IDV and ideal insurance coverage for your car.

Read more car insurance terminologies you should know

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If you have a car and wish to use it on Indian roads, you need to get a car insurance policy first. The Motor Vehicles Act which was passed in 1988 mandates every vehicle to have a valid insurance cover before it is driven on Indian roads. So, buying a car insurance policy is inevitable. Do you know from where you can buy a policy?

A car insurance policy is available both online as well as offline. The offline mode is cumbersome as you have to visit an insurance company’s office or seek the help of an insurance agent. The other alternative is buying a policy online. There are various websites which cater to this need. Online brokers and aggregators let you buy a policy after comparing different plans. Turtlemint is an online broker through which you can buy a car insurance policy easily. Turtlemint is tied up with leading insurance companies offering the best car insurance policies. Moreover, personalized assistance is provided when you buy the policy and also at the time of claim. So, if you are planning to buy a car insurance policy for your car, you can choose Turtlemint. The process is simple and takes minutes. Here is a step by step process of buying a car insurance policy through Turtlemint’s website –

1. First, visit Turtlemint’s website at turtlemint.com You would land on the homepage which looks like this –

2.On the homepage, select ‘Car’ tab. You would be redirected to a new page. Here is how the page looks –

3.In the box displaying ‘Car number’, enter the number of your car. Once you do so, you would have to click on ‘Find Plans’ which would take you to another page wherein you would have to provide the details of your car. Here is what the page would look like –

You are required to enter the car model, the manufacturing year, the fuel type and the variant of your car. These details are required for calculating the premium and the Insured Declared Value (IDV) of the different plans. When you hit ’Next’, you would be asked whether you want a new policy or renew an existing one. Then you would be asked your mobile number and email id for sending the quotes through SMS and/or email respectively.

This information is optional. If you don’t provide your contact details, you can hit ‘Show Quotes’ and be directed to a page showing the available plans.

4.Alternatively, if you don’t know your car’s number, there is another option. Here’s what –

In this page, instead of providing your car number, choose the option mentioned below – ‘Continue without car number’. When you click this option, you would be taken to another page wherein you would have to choose your RTO –

Once you provide the RTO, you would be asked your car’s model.

After entering the model, the manufacturing year, fuel type and variant of the car is to be provided –

After you provide these details, you have to specify whether you want a new policy or renew an existing one –

When you give the required information, you can choose to get the quotes of the different plans through SMS or email or both. This information is optional. If you don’t want you can directly skip to see the plans and their quotes –

5.Whether you know the car’s number and proceed to see the quotes or you go by the alternate way, you would see the available plans with the premiums when you hit ‘Show quotes’. Here’s what the page would look like –

In the left hand corner, you can see various customizations available. If you have fitted accessories in your car, you can put in their value under ‘Value of your accessories’ and update the quotes –

6.Similarly, you can choose the mentioned add-ons and again update the results –

7.When you scroll down on the page, there is a discount if you choose voluntary deductible. If you choose a deductible and enter the chosen amount, you get a premium discount –

8.Based on the chosen customizations, you can shortlist a plan with comprehensive coverage features at the lowest premium rate. Then you would have to click the ‘Buy’ button beside the chosen plan –

9.After you click ‘Buy’, you would be directed to a new page which looks like this –

10.You are required to provide the details of the registered owner of the car. Once you do so and hit ‘Continue’, you would be asked to confirm the registration number of the car –

11.When you hit ‘Continue’, you would be asked your details and your policy’s details. You would have to provide the date from which you want the policy to start, the engine number, chassis number, whether or not your car is financed, the institution offering the finance, registered and correspondence address –

12.When you hit ‘Continue’, you would be asked your personal details –

13.When the details are verified, you can procced to pay the premium –

14.Enter the payment details and complete the premium payment. Once you pay the premium the policy would be issued and you would get the policy details in your mail and also as a hard copy.

This is how you can buy a car insurance policy through Turtlemint. Wasn’t the process easy?

So, the next time you think of buying car insurance, choose Turtlemint and ease the process.