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Insurance Article

Living in Ahmedabad: Do You Have the Best Car Insurance?

June 29 2017
Car Insurance in Ahmedabad

If you are an Amdavadi, read on to know how to get the best car insurance deals

Ahmedabad is Gujarat’s largest city and the sixth largest in India. In the decade spanning from 2001-2011, a very interesting statistic came to light, which reflected the changing scenario of the city. During this decade, — the city famous for its textile industry, Sabarmati Ashram and World Vintage Car Museum — the growth of vehicles was far more than the growth of its population.

In those ten years, the rate of vehicles added on the city roads crossed 100%, whereas the human population grew at a more modest 58% during the same period. From these statistics, we come to know that the vehicle population has doubled, leading to more congestion in the streets.

The added burden (which is ever increasing) means accidents will also increase as the same space is occupied by more number of cars. This is why car insurance in Ahmedabad becomes even more pertinent. Here we list out some essential information, which will help Amdavadis understand how car insurance works and how to get the best out of it.

Types of Vehicle Insurance

Car insurance is broadly classified into these two types. Go for the latter if you want broader coverage.

  • Third Party Insurance – This is an insurance made mandatory by law and is required for all vehicles plying on the roads. It covers accidental damage to a third party and does not provide coverage for own damage.

  • Comprehensive Motor Insurance – A motor insurance plan not only protects the insurer against legal and financial liabilities of a third party, but also covers the insured’s vehicle repair expenses and other perils arising out of natural and man-made disasters.

How to Reduce Insurance Premium

Insurance premium is the amount you have to pay to the insurance company for availing continued coverage from the policy. Here are some factors that influence premiums:

  • Car Security – If your car has good security features such as anti-theft alarm and immobilizers then it'll prove difficult to steal. Insurers also take note of this, and lower premiums on such cars. Expect a discount of 2.5% if you’re the owner of such a car.

  • Voluntary Deductibles – Premiums can be reduced if the insured opts for a voluntary deductible. The deductible is the amount over and above which a claim is payable by the insurer. Good drivers, and those willing to settle small claims can opt for this and save up to 30%.

  • No Claim Bonus – A no claim bonus is given when no claim is applied for in a policy period. This bonus increases year on year if no claim is made, and goes on to reduce the premium by a maximum of 50%.

Costly Add-ons that Save Big Money

  • Nil Depreciation Cover – Rubber and plastic parts on a car are subject to wear and tear. And because of this, insurance companies pay only 50% of the total amount incurred when a claim is made. In an accident these parts are the first ones to get affected and you have to bear 50% of the cost. This can be avoided with the nil depreciation cover. It adds a bit to the premium but can prove worthwhile during a claim.

  • Return to Invoice Cover – This can add up to 10% to your premium amount, but does the job of covering the gap between the insured value and the invoice value of the car. In case your car is stolen or damaged beyond repair, this cover will fetch you the original price of the car without depreciation! The cover is especially useful when you live in areas with a history of car theft or commute long distances to work.

Related Article:

When Cars Drive Themselves, How Car Insurance Gets Impacted?
Five Reasons Why Car Insurance Claims Get Rejected

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