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Key Highlights of Four-Wheeler Insurance Policy

Given below are salient highlights of a four-wheeler insurance policy:

What Is Covered Under Car Insurance Policy?

Third Party Bodily Injuries

All bodily Injuries caused to someone else by your car in an accident will be compensated for by your insurance provider

Third Party Disability

If an accident caused by your car results in a disability of a third party, then the compensation for the same will be provided

Third party Death

Compensation will be provided in case an accident caused by your car results in a demise of a third party.

Third Party Property Damage

Damages caused to a third party’s property will be covered up to Rs. 7.5 Lakh.

Road Accidents

Damages caused to your car in accidents or collisions will be covered.

Natural Calamities

Damages sustained by your car in natural disasters such as earthquakes, floods, cyclones, etc will be covered.

Man-made Disasters

Damages incurred by your car in man-made disasters like riots, strikes, terrorsism, vandalism, etc will be covered.

Damage During Transit

Damages caused to your car during transit by road, rail, inland waterway, and lift will be covered.

Fire/Explosion

Damages sustained by your car in fire and explosions will be covered.

Theft of Your Car

Loss of your car due to theft or burglary is covered.

What Is Not Covered Under Car Insurance Policy?

Drunk Driving

Claims for incidents when the insured was driving under the influence of alcohol are not admissible.

Driving Without Valid Driver’s License

No coverage is offered if the insured was driving without a valid driver’s license.

Wear and Tear/Depreciation

By default, no coverage is offered for depreciation expenses of the car.

Consumables

No coverage is available for engine oil, brake oil, air conditioner refrigerant, radiator coolant, nuts, bolts, screws, washers, grease, etc.

Mechanical/Electrical Breakdown

No coverage is provided for mechanical/electrical breakdowns.

Driving Under the Influence of Drugs

Claims when the insured was driving under the influence of drugs are not covered.

Damage in War/Nuclear Attack

No coverage is provided for damages sustained in a war or nuclear activity/attack.

Damage to Tyre/Tubes Except in Accidents

By default, damages incurred by tyres and tubes, except in case of accidents, are excluded from the coverage

Damage Incurred Outside Covered Geographical Boundaries

No coverage is offered for damages incurred outside the coverage geographical limits.

How to Choose Car Insurance Policy Online?

Buying a four-wheeler insurance policy may become a challenging task if you fail to do proper research. At Insurance, we understand how important it is for you to buy the right car insurance plan. So, to help you out, we have enlisted some of the tips in which you can buy the best policy online:

• Check the Different Insurance Types:

  With three different types of four wheeler insurance available, it is crucial to assess your insurance needs and accordingly finalise the type of policy you need. Choose a third-party cover if you want to stay legally compliant. On the other hand, choose a comprehensive car insurance plan if you want to get complete protection for your vehicle. As InsuranceDekho offers three different types of four-wheeler insurance plans, you can easily pick one that best suits your needs and budget.

• Analyse the Car Insurance Premium:

  The premium of the coverage depends on a number of factors such as IDV, model, fuel type, age, and others, which is why the car insurance premium varies from one insurer to another. Moreover, checking four wheeler insurance premiums also become important to analyse so that you are able to buy a plan that fits your budget. So, it is wise to first compare the four-wheeler insurance premiums and then make the final decision.

• Check for IDV:

  IDV or the Insured Declared Value refers to the current market value of your car. As your vehicle suffers wear and tear, then the value of your car decreases. It is the maximum amount that your insurance company will settle in case your car is completely damaged or stolen. The four-wheeler insurance premium is directly proportional to the IDV, which means that the higher the IDV, the higher will be the four wheeler insurance premium.

• Compare Different Plans:

  You should compare different car insurance plans online. The comparison makes it easier to pick the best plan as per your budget and needs. You should analyse the coverage offered under different types of four wheeler insurance plans as doing so will help you make an informed decision in selecting the right insurance policy for yourself.

• Add-ons:

  There are a number of add-ons available such as zero depreciation cover, no claim bonus, key loss cover, engine loss cover, and more that help in enhancing the benefits of your plan even more. So, while buying an insurance plan, you must include a number of add-ons to get additional coverage. Once you have rightly selected the four wheeler insurance policy, you will be able to get complete protection for your car.

• Availability of Cashless Garages:

  Cashless garages in car insurance is helpful for policyholders to get their insurance claims settled in a cashless manner. With the availability of more cashless garages with your insurer, it becomes easier to get cashless repairs in a hassle-free manner. So, always buy a four-wheeler insurance plan from a company that has tie-ups with a large number of cashless garages.

• Check Claim Settlement Ratio:

  The claim Settlement Ratio in four wheeler insurance refers to the efficiency of insurance companies in getting their claims settled. It thus refers to the percentage of claims settled by the insurer in a year. So, always look for an insurance company that has a simple and swift claim process and check their Claim Settlement Ratio (CSR) before finalising. It is better to buy a plan from a company with high CSR.

• Services Offered:

  In addition to the claim settlement ratio, you should also check the services offered by your four wheeler insurance company. For instance, you must understand whether the company offers a quick claim settlement, 24*7 service, and other services. You should thus choose a company that offers hassle-free customer service.

To get the relevant coverage under your car insurance plan, you need to pay a certain amount which is called the car insurance premium. To get an estimate of the premium you need to pay towards your plan, you can easily follow a few simple steps. Here is how you can calculate premium online:

Using Online Premium Calculator

A car insurance premium calculator is basically an online tool that helps you in estimating the premium you need to pay for your car insurance plan. Listed below are the steps in which you can use four wheeler insurance premium calculator:

• Step 1: Select your car’s make, model, fuel type and variant
• Step 2: Select the city in which your car is registered in
• Step 3: Select the year in which you purchased your car
• Step 4: Select ‘Yes’ if you have previously made a claim, else select No
• Next: Now press the ‘Calculate’ button

How to Calculate Own Damage Car Insurance Premium?

A standalone own-damage insurance provides financial protection if there is any damage or loss to the insured vehicle. Here is how you can calculate own-damage car insurance premium:

Own-damage car insurance premium = [Insured Declared Value*Premium Tariff as decided by Insurer] + Add-ons – [Discounts like NCB]

How to Calculate IDV of Your Car?

IDV or Insured Declare Value can be easily calculated using this formula:

[List price of the car manufacturer – depreciation deduction] + [Cost of vehicle accessories which are not a part of list price – depreciation deduction of accessories]

Calculating Third-party Four Wheeler Insurance Premium

Below mentioned is a table that highlights the premium for third-party car insurance plans:

The insurance premium depends on a number of factors such as the following:

• Engine Capacity of the Car

The engine capacity of the car largely affects the car insurance premium. Four-wheelers with higher engine cubic capacity will have higher insurance premiums. The car’s cubic capacity of CC is thus directly proportional to the vehicle insurance premium.

• Age of the Car

Another factor that affects the car insurance premium is its age. Typically, the insurance premium of an old car is lower as compared to that of a new car. This is because the IDV or the Insured Declare Value decreases as the age of the car increases and so does the premium. On the other hand, for new cars, the IDV is high and thus the premium for new cars will be higher.

• Type of Car Insurance

As already stated, there are three types of four wheeler insurance plans such as third-party, standalone own-damage, and comprehensive. While a third-party insurance provides coverage for third-party liabilities, comprehensive insurance provides complete protection to the insured car. On the other hand, standalone own-damage insurance only provides coverage if there is damage or loss to the insured car. Thus, depending on the type of insurance plan you buy, the insurance premium is accordingly determined. Typically, the premium of a comprehensive plan will be higher.

• Add-ons

With comprehensive insurance plans, you can also include a number of add-ons such as zero depreciation cover, no claim bonus protector, key loss cover, engine loss cover, and many more. However, it is important that as you include these add-ons in your insurance plan, the premium will go up along with its coverage. The more add-ons you include in your car insurance plan, the higher will be the premium.

• Claim History

If you have a bad claim history or if you have raised multiple claims in a given year, then your four wheeler insurance premium will be higher. On the other hand, if you have raised no claim in a given year, then a No Claim Bonus benefit will be paid out as a reward. With the No Claim Bonus benefit added to your coverage plan, the car insurance premium automatically gets affected. Thus, a No Claim Bonus benefit lets policyholders pay lower premiums.

• Insured Declared Value

Insured Declared Value or what is called IDV largely affects the insurance premium. It is basically the current market value of your car and with time the IDV decreases. As the IDV of a vehicle decreases with every passing year, the four wheeler insurance premium also gets reduced.

• Deductibles

In car insurance, deductibles refer to a specific amount that is paid by the policyholder from their own pocket. It depends on the policyholder to keep the deductible lower or higher in their insurance plan. The higher the deductibles you choose, the lower will be your premium. However, always remember that if the deductibles will be higher, you will have to spend a lot of money from your pocket towards the repair of your car. So, choose wisely.

• Installation of Anti-theft Devices

If someone has installed anti-theft devices authorised by the Automotive Research Association of India (ARAI), then their policy premium will be lower by the insurance company. This is because it lessens the chances of car theft which ultimately lowers the insurer’s risk and burden to pay compensation. Furthermore, installation of other safety devices also helps in reducing the premium.

• Geographical Location

Yet another factor that plays a crucial role in determining the premium is geographical location. For instance, if you live in an area where the chances of accidents or natural disasters are higher, then the insurance premium ought to be higher. On the other hand, if you live in an area that is safe from thefts or accidents, then the premium for cars in such areas will be lower.

• Other Factors

In addition to those mentioned above, there are several other factors that determine your four wheeler insurance premium. For instance, the make and model, fuel type, and any modifications in the car either increase or decrease the car insurance premium. So, be clear about the modifications you are getting done in your four-wheeler as that can largely affect your four wheeler insurance premium.

Tips To Reduce Four Wheeler Insurance Premiums

Worried about paying hefty car insurance premiums? If so, then fret not as there are a number of ways in which you can stay away from paying higher premiums. Scroll through the section below to know all about the different ways in which you can reduce your coverage premium:

• Opt for More Deductibles: While buying a four wheeler insurance plan, there is an option to opt for deductibles. Deductibles are basically the amount that the policyholder will have to pay towards the repair of their car. If you opt for a higher deductible, then the insurance premium will be lower. So, to save on premiums, it is better to opt for higher deductibles.
• Buy Pay As You Drive: Pay As You Drive is a recently launched feature in the car insurance industry. This is highly beneficial for all those who want to save on coverage premiums. This is because the premium in this case is determined on the basis of the kilometres you drive. So, if you drive your car occasionally, then it is better to buy a Pay As You Drive so that you pay a lesser premium.
• Compare Car Insurance Policies: With so many four wheeler insurance companies offering car insurance plans, it is important that you compare all of these different plans. Doing so will not just help you in selecting the right vehicle insurance plan but also a plan that fits your budget. On comparing different insurance plans, you will be able to analyse which plan fits your budget and accordingly buy one.
• Avoid Raising Car Insurance Claims: It is highly advisable to avoid raising claims for minor damages. For instance, if there is minor damage to the body of the car in case of an accident, then it is better to pay for the expenses from your own pocket instead of raising a claim. On paying expenses from your own pocket, you will be able to maintain your No Claim Bonus benefit and thus get discounts on four wheeler insurance premiums.
• Choose the Adequate Coverage: If you wish to save on four-wheeler insurance premiums, it is very crucial that you analyse your coverage needs. This will help you in buying a four wheeler insurance plan that best suits your needs and prevent you from paying additional premiums.
• Renew Car Insurance Before its Expiry: A four wheeler insurance plan comes with an expiry date. So, renewing car insurance on time becomes very important. If you fail to renew your plan before its expiry date, then you will have to pay fines.
• Install Safety Devices: By installing safety devices like anti-lock systems, anti-theft devices, and others, the safety of your car increases. So, when your insurer knows that your car is at a lesser risk, then the premium in such cases will be set to a lower amount as compared to other instances.
• No Claim Bonus: It is very important that you drive safely to avoid raising four wheeler insurance claims. When you drive responsibly, the chances of accidents will be lesser, and thus you will not have to raise any claim. Moreover, this also keeps your No Claim Bonus benefit intact. With the No Claim Bonus benefit, you will be able to save largely on your four wheeler insurance premium.

What is IDV and what factors affect IDV?

IDV stands for Insured Declared Value and is a crucial component in determining the premium amount and coverage of a comprehensive four- wheeler insurance policy. IDV represents the maximum amount an insurance company will pay out to the policyholder in case of a total loss or theft of the insured vehicle during the policy period. In essence, it is the current market value of the insured vehicle, excluding the value of any additional accessories or modifications that are not pre-installed.

Factors that affect the Insured Declared Value (IDV) of a vehicle in car insurance include:

• Age of the Vehicle: As a vehicle age, its market value decreases due to factors such as wear and tear, depreciation, and obsolescence. Consequently, the IDV of an older vehicle tends to be lower than that of a new one.
• Make and Model: The make and model of the vehicle significantly impact its market value. High-end or luxury vehicles tend to have a higher IDV compared to others.
• Depreciation: Depreciation is a major factor affecting IDV. Insurance companies use standardized depreciation rates to calculate the reduction in the vehicle's value over time.
• Geographical Location: The location where the vehicle is registered can influence its IDV. Vehicles registered in urban areas may have a slightly higher IDV due to higher market values compared to rural areas.

It's important to note that while a higher IDV might result in a slightly higher insurance premium, it also means that in the event of a total loss or theft, you may receive a higher payout from the insurance company. However, setting the IDV too high can lead to unnecessary premium costs, while setting it too low could result in insufficient coverage in case of a claim. It's advisable to choose an IDV that accurately reflects the current market value of your vehicle.

Here is a table that illustrates the age of the vehicle and how it affects the IDV

Below is the process of car insurance renewal online through the InsuranceDekho portal:

Step 1: Go to InsuranceDekho and click on the ‘Car’ tab.

Step 2: Enter the car’s Registration Number and click on the ‘Proceed’ button. Then choose your car’s variant and vehicle fuel type to continue.

Step 3: Share the previous company’s expiry date and the name of your car insurer. Also, tell if you have raised any claim in the last policy year and click on ‘Continue’.

Step 4: Fill in your name and mobile number and the duration for which you want to insure your car and click on the ‘Submit and Get Quotes’ link.

Step 5: Different premium quotes from different car insurance companies will appear which you will have to compare and choose as per your requirements. You can also pick car insurance add-on covers at this step.

Step 6: Click on the ‘Buy Now’ button, verify your details, and make the payment. The car policy will be issued and its document will be sent to your registered email ID.

A four wheeler insurance claim can be made in two ways - a cashless claim or reimbursement claim. When you visit a network (partner) garage of your insurance provider for your car’s repair work, the claim is settled in a cashless manner When you visit a non-network garage of your choice, the claim is settled first by you and is later reimbursed to you by your insurance provider. You can follow the below steps to make a car insurance claim:

• Register Your Car Insurance Claim: Inform the insurance company about the mishap at the earliest. Once you have informed the company, you can also fill out the claim form on their website. You can do so by entering details like your insurance policy number, name, address, and a few more. You will also have to provide a few other details like the incident and whether a third party was injured during the time or not. Once you have entered all the details, you can proceed with submitting the claim form.
• Claim Intimation Number: After your claim has been submitted, you will receive the claim intimation number. Keep this number safe for future reference.
• Inspection: Next, a surveyor will be assigned to inspect the total damages done to the insured car. After this, the surveyor will submit the damage reports to the insurance company.
• Take Your Car to A Garage: If you have opted for a reimbursement claim, then take your car to any garage of your choice. However, in the case of cashless claims, you can take the damaged car only to a cashless garage or one that has a tie-up with the insurance company.
• Claim Settlement: Once the repair work of the insured car is completed, the insurance company will verify all the documents related to your claim. Finally, when everything is verified the claim request will be directly settled at a cashless garage. In case of reimbursement claims, the claim amount will have to be first borne by the policyholder, which will be later reimbursed by the insurance company.

You can compare different four-wheeler insurance policy quotes online at InsuranceDekho in just 30 seconds. A thorough comparison of policy quotes can help you find the most suitable policy at the lowest premium. To get the policy quotes, you will have to enter some details such as make, model, fuel type, variant, manufacture year and so on. This will get you a premium offered by several insurers in the market which you can customise with add-on covers and select the one that fits best to your requirements and budget.

How to Download Your Four-Wheeler Insurance Policy Copy?

Here are the steps you need to follow to download a copy of your car insurance policy:

• Go to the official website of the insurance company
• Log in with your credentials and enter details such as policy number, name, and a few more
• You will be redirected to your policy detail page. You can also see a download option visible on the screen
• Proceed with downloading the insurance policy papers. In case you are unable to download a copy of four wheeler insurance, you should directly contact your insurance company