How To Get Cheap Car Insurance

Have you ever wondered how your car insurance is calculated? You must have heard the insured declared value, i.e., IDV, No Claim Bonus, i.e., NCB, Depreciation, etc. many times. But do you know what they mean? If you do not know, DriveSpark Hindi today is giving you complete information related to insurance. See the slideshow below.

This is a simple guide that will guide you in such a simple way that you will be able to calculate the insurance of your vehicle quickly.

There are two types of insurance
There are two types of insurance. The first is a Comprehensive Damage Cover and the second is a Third Party Cover. The three significant factors that Own Damage Comprehensive Cover depends on are location, the car’s edge, and its engine capacity. Whereas third party cover depends only on the engine capacity of the vehicle.

To understand insurance closely, let us take a year-old Alto as an example.

If your Alto car is more than one year old and less than two years old, then the insured declared value applied to it will be 80% of the ex-showroom price of the car. If the car’s ex-showroom price is Rs 4 lakh, then 80 percent of it is Rs 3 lakh 20 thousand.

Now, after this, the premium will be calculated at 3.127 percent. It will cost 3 lakh 20 thousand rupees. According to this, the amount that will be made will be 10 thousand rupees.

Now, it comes to insurance premiums. It varies from company to company. Many companies offer a discount of a few percents on the premium amount. Let us understand this as an example. Suppose a company is offering a 50 percent discount, then 50 percent of the amount of 10 thousand rupees is 5 thousand rupees.

Now the next and essential step is the No Claim Bonus. This shows how much money you have to pay for insurance. If you did not claim for insurance last year, you get a discount of about 20% in premium. This discount increases in the coming years if you do not make an insurance claim. Remember that we are talking about cars over a year old and under two years old. From this point of view, 20 thousand no claims on 5 thousand rupees are made according to a bonus one thousand rupees. In this way, you get a rebate of 1 thousand rupees for the premium amount, i.e., 5 thousand rupees, and you have to pay only 4 thousand rupees as premium.

Third-party premium is the next step. This is to compensate for the injury or loss of someone other than you. The premium amount is determined by the capacity of the car’s engine. It keeps revising year after year. For example, the Alto car is below 1 thousand ccs, and then its premium will be Rs 1,468. For cars with engines ranging from 1 thousand to 1,500 cc capacity, Rs 1,598 is charged as premium whereas vehicles with more than 1,500 cc have to pay Rs 4,931. In such a situation, you will get Rs 1,468, which is for more cars than 1 thousand cc engine, will be added to 4 thousand rupees. In this case, the total amount will have to be given is Rs 5,468.

Now the last step remains. Personal accident cover and service tax also add to the total amount of insurance premium — one hundred rupees as an own accident cover. While a service tax of 14 percent is levied, now if we look at the total amount, then 14 percent of Rs 5,486 and Rs 100 will be added to the accident cover. In this case, the total amount made is Rs 6,348.

So this was the way of insurance calculation. Hopefully, now you too will be able to calculate insurance easily.

About Author : Tushar Ahir
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