Questions That Will Help You Buy The Best Car Insurance


When purchasing Bajaj Allianz car insurance online, making an informed decision is crucial. To secure the ideal plan, compare available options and assess your requirements. Answer these questions to guide your decision:

What Is The IDV Of A Car, And How Is It Calculated?

Your car’s Insured Declared Value (IDV) represents the maximum claim amount in the event of a loss. Since vehicles depreciate over time, insurance companies calculate the IDV at each policy purchase or car insurance policy renewal to reflect your car’s current value. This ensures that you receive adequate coverage for potential damages.

The IDV of a car can be computed using the following formula:

The car’s showroom price plus applicable accessory costs equals the depreciation value (as per the Insurance Regulatory and Development Authority of India – IRDAI). #

Remember that a new car would have a higher IDV and premium because it has yet to experience depreciation. On the other hand, a vehicle’s IDV and premium will decrease with age.

Why Is Obtaining Comprehensive Coverage Important?

Third-party insurance is legally mandatory, covering losses for third parties in accidents. Comprehensive coverage provides enhanced protection, addressing financial obligations from various incidents, including theft, terrorism, and natural disasters. It offers additional benefits like zero depreciation and personal accident coverage at a minimal cost. *

What Is NCB, And What Is Its Application?

Consider the No Claim Bonus (NCB) to save on car insurance. If you refrain from filing claims, you receive a premium concession, reflecting your responsible driving and car care. NCB indicates low-risk behaviour, leading to potential cost savings. Inquire with your insurer about allowable claims that won’t affect your NCB. ## *

It’s crucial to understand that NCB is linked to the driver (you) rather than the vehicle, meaning it can be transferred to a new policy when you purchase a new car. You can receive up to a 50% NCB when renewing or transferring your policy. *

How Do Add-On Covers Work?

Riders are extra insurance policies you can purchase to supplement your current policy and offer more coverage. Several well-liked riders are:

  • Insurance against misplacing or breaking your vehicle’s keys.
  • A replacement will be provided if a covered accident damages your personal belongings.
  • Use a secure engine cover to shield your car’s engine from potential harm.
  • Coverage for emergency roadside assistance services, such as flat tyre assistance, refuelling, towing and mechanic consultation.
  • Use zero depreciation reimbursement coverage to get paid for your car at its actual value rather than its depreciated value. Claims are subject to terms and conditions set forth under the motor insurance policy *

Where Can I Purchase Car Insurance?

Choose car insurance online or offline after thoroughly comparing your needs and financial situation. Ensure the selected provider is reputable with a strong track record.

What Makes Claim Settlement Ratio Significant?

The Claim Settlement Ratio (CSR) indicates the proportion of settled claims to total claims for an insurance company. Choose a brand with a high CSR for better chances of claim acceptance and consider its corporate social responsibility rating. Claims are subject to terms and conditions set forth under the motor insurance policy. *

After considering fundamental questions to ensure total protection against potential calamities, select a comprehensive policy. Think ahead and choose a policy that safeguards you and your family.

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