Car Insurance Checklist :

As motor insurance is mandatory for every vehicle, yearly payment of premium is one thing every car owner have to keep in mind.

Be aware that you can switch between Insurance Companies each year and so make sure you get the best deal available in the market each time you renew your policy.

Things to check:

1. IDV (Insured Declared Value).

This is the value of your car as assessed by the insurance company after calcualting depreciation.Normally, the first year depreciation is 15% and subsequent depreciations are 10% each year.

Normally Insurance companies tend to reduce the IDV beyond conventional limits to lower the premium price.The thumb rule to be folllowed in Car Insurance is ” Maximum IDV for less Premium amount”.

2. Premium Amount.

Premium amount is based on many factors including Car type, IDV, % of NCB(No claim bonus) etc.

The rates of the NCBs (No Claim Bonus) are normally as below.

• 20% on 1st renewal.
• 25% on 2nd renewal.
• 35% on 3rd renewal.
• 45% on 4th renewal.
• 50% on 5th and subsequent renewals.

3. Claims-Settlement History:

The good will of the company in giving settlement to claims made should be considered.

4. Other features:

Other features like Cashless settlement, good customer service etc should be given consideration.

Many companies and websites are now allowing online insurance premium payment and hence now car owners get the facility of comparing prices of all available insurance policies and decide which policy suit his/her need.