Why Your Second Vehicle Needs Insurance Too

Insurance companies often come across instances of second hand car insurance claims, where the new owner claims for damages to the vehicle without having transferred the insurance policy in his name after the purchase. The claim however is not admissible in the absence of a valid contract between the insurance company and the new owner of the vehicle. In a recent case, the Pune Consumer Court ruled in favour of the insurance company and upheld the insurer's decision of not paying the claim to a second hand vehicle owner since he had not transferred the insurance policy to his name. The Court ruled that an insurance policy is a contract between a policy holder and an insurer. In the absence of the new vehicle owner's name on the motor insurance policy, there exists no valid contract between him and the insurance company. Hence any accidental damage suffered by the new owner is not admissible under the previous policy.

Owing to low awareness on insurance amongst the general public instances of post loss insurance grievances in such scenarios are common place in India. Hence it is important for individuals who have purchased or are looking at buying a second hand vehicle, to know that transfer of insurance is an equally critical aspect of the buying process and should not be ignored or procrastinated. Also, the individuals who sell their vehicle have an equal responsibility to ensure that the insurance is transferred in the new owners name to avoid any legal hassles that may arise in the future. Here we shall explain how not transferring of insurance will impact both the buyer and the seller of the motor vehicle. We shall also demystify for you the procedure of ensuring a seamless insurance transfer.

To begin with it is important to understand the structure of a motor insurance policy. A comprehensive motor insurance policy comprises of two parts - Own Damage (OD) and Third Party (TP). Whereas TP section covers damages caused by your vehicle to a third person and are mandated by law, OD section covers damages caused to your vehicle owing to any accidental mishap. After purchasing a used car, Section 157 of the Motor Vehicle Act casts a duty on the new vehicle owner to get the insurance policy transferred in his name by applying to the insurance company within the first 14 days. For these 14 days, only the "Third Party" section of the insurance policy gets automatically transferred. However, it does not apply to the Own Damage section of the policy. The "Own Damage" section will be transferred only after the insurance policy gets registered under the new owner's name. Post this 14 day period, if the new owner fails to get the insurance policy transferred in his/her name the insurance company is not liable to bear any losses incurred by new owner in either of the TP/OD sections.

If the insurance is not transferred and the policy still bears the name of the first owner, in case of an accident the claim for damages to the vehicle or third party will not be paid by the insurance company. Moreover, the court may also send the first owner a notice to compensate for the loss caused to a third party, for an accident caused by the new owner. The whole process of establishing the proofs of sale, the transfer of vehicle RC etc. by the previous owner can be a grueling exercise. This can be easily avoided if both as a seller and a buyer of a second hand vehicle, one insists on getting the insurance policy transferred to the new owner's name immediately after the sale deed is finalized.

Factors to consider while deciding your car value

Protecting your car against damages due to traffic accidents, its liabilities like third party damages, own damage, damages due to natural or man-made incidence is termed as car insurance. An insurance policy also provides for accident cover of the policyholder while driving including the passengers. It also encompasses third party liability which is injury/death or property damage that the driver has to pay.

It’s a mandate by the government of India to buy a suitable car cover to driver your vehicle on road. Most insurance companies have a tie-up with the car dealers and they offer quotes along with the purchase value of the car. 

While deciding upon the cover value there are a lot of factors taken into consideration like car make and model, place of living, occupation, car parking area, security aspects, etc.

However one of the key factors is Insurer’s Declared Value (IDV). It is the sum of the value decided by the insurance firm after careful examination of the car. Not to be mistaken, it can’t be the exact purchase value of your car. Insurance company’s surveyor will go through the car inspection with company norms and quote a cover value to be offered to the insured person during a claim.

Some other factors deciding the value of the car insurance policy:

Age of the Car

As the car gets depreciated every year, the insurance value of the car will also reduce. Hence, during insurance renewal, you have to ensure that you have enough cover amount to bridge up the financial losses. 

Purpose

A self-driven vehicle used for the personal purpose will have lower premium compare to the ones used for business purposes.

Accidents

If the car and its driver are involved in frequent accidents in the past, the premium will higher. As the policies get renewed every year, any accident in this span will also result in a higher premiums rate.

Previously on public sector companies used to offer motor insurance but because of the entry of private sector insurance firms, there are varied innovative policies being sold in the markets. You can choose the policies as per your benefits and premium paying capacity. Also, online car insurance deals are quite exciting and come with loads of discounts with no involvement of agents.

As of now, car insurance sector is booming and companies are targeting the existing and potential customers with innovative policies. It is evolving and a lot of features are being introduced that will influence the premium each year.

The careful comparison is the key for a quality insurance product. You can compare policies in terms of benefits & features, discounts, premium cost, claim settlement, policy terms, and conditions, inclusion & exclusion, premium payment modes, etc. Once done you can narrow down the search to 3 to 4 good insurance policies and choose a particular one for your car. Also, ensure that you read terms and conditions, inclusion & exclusion well before you purchase the policy. At any point of time, if you doubt regarding the policy structure, call up the customer service team or visit online and have thorough chat to clear the clouds in your minds.

In case of policy lapse, your insurance provider gives a grace period of usually fortnight’s time. Post this period you might run the risk of driving a car without insurance. So, it's always better to renewal policy at least a month prior to ensure that you’re safely sheltered under suitable car insurance.  

This device will price your car insurance

Car Insurance the best way to protect you against financial loss

Benefits of Purchasing Car Insurance Online

With the development of Internet and e-commerce, plenty of companies are now moving their own business to the Internet, not only the Internet has well development in recent years but also make many industry found his new way on the Internet, even though people used to think that some live services must not be achieved online such as the meal, haircut, etc. However, these industries have a new model of their own today and they are growing very fast. What is more, when the insurance industry goes into thee-commerce, for example, a lot of people think car insurance online is unsafe.
Although, before that it is not accepted by many people, it still has a certain market position. Therefore, come to see some benefits when you purchase it online.

To begin with, certainly, in order to attract more drivers to become their clients, car insurance companies try their best to let everyone know that car insurance can purchase online. So, this seems an advertisement to tell people purchase online car insurance is cheaper than offline. Furthermore, it saves our a large proportion of labor costs and the intermediate link, the motorists you only need to fill in the relevant information on the Internet so both you and your car will have a good protection.
What is more, purchasing it online we can enjoy the favorable that we ever never touch offline, for example, the first time the user can enjoy the purchase of the maximum 10% of the preferential costs. In addition, our life is inseparable from the Internet, when you buy car insurance online, only need you gently move the mouse in front of your computer that your car is a guarantee which fully realized the docking of the car with the Internet.

Last but not the least, we take into consideration that different insurance companies have different quotes and price. The online application for car insurance, all the processes and the cost is transparent, in addition to the shortcut and convenient, the information on the Internet is all open, as long as you have a certain understanding of car insurance.

Purchasing car insurance online is another way to let you choose a better one. Although many people think that online shopping there still have a lot of security holes, but with the constant improvement of e-commerce and law, the Internet will be more close to people's life.

How To Purches A Better Motor Insurance Policy

How Telematics can help you get a lower rate on your Auto Insurance

Everyone likes saving money - why else would we cut coupons or shop at those big-box stores? Well, what if we told you there was a way that you could be saving money on your auto insurance? And it’s easy. So what is it? Telematics.

What is telematics? Think of it like the little black box on an airplane. Your insurance company inserts one of these devices into your vehicle and it monitors the following:

Number of miles you drive

Speed

How quickly (and often) you brake – i.e. the smoothness of your ride

What types of roads you travel on

What time of day or night you are driving

Why is this information useful? It helps us, you car insurance company, evaluate just how safe of a driver you are. Do you speed regularly? Or slam on the brakes a lot? Do you do most of your driving during rush hour on the freeway? We compile all of this information and use it to adjust your auto insurance premium. Safer drivers are typically rewarded with lower rates, although there is no penalty for drivers who aren’t so safe.

But there are other reasons we value these telematics devices. For starters, they can help us settle your accident claims faster. We can take the information from your little black box and use it to determine the speed you were driving at the time of the accident or how quickly you had to brake. Not only that, but the GPS on it helps to cut down on theft and help us get your car back. insurance

There is also a societal benefit to telematics: People are more likely to drive safe when they know their driving is being monitored – they are more likely to obey speed limits and traffic signs. And hey, we’re all about making our roads a safer place!

[Source: http://www.texaninsurance.com/client-service/blog/entryid/6136/how-telematics-can-help-you-get-a-lower-rate-on-your-auto-insurance]

A Simple Guide to Buying Car Insurance

Car Insurance: The best way to protect you against financial loss

Buying a motor car is like a dream for most of us and it is still considered as a major milestone in life for many people in India. However, just like you wish to fulfill your dream you should also plan to protect it from unwanted incidences like sudden accidents, natural calamities or being stolen. It will definitely make a huge hole in your pockets.

Purchasing suitable car insurance would be an ideal solution to tackle your finances during unexpected incidences. However, most people think it’s an added burden on their finances and don’t wish to purchase an insurance cover. But, insurance could be your best companion during rainy days of finances.

In India, there are various insurance companies who offer policies with customized benefits and features. You can visit the branches or call customer service, as well check quotes online to buy a suitable policy for your car. It is advisable don’t leave sorting out your insurance until the last minute. Buy it a few weeks before you need to can help you cut the cost of premiums significantly.

From lowering your premium costs burden to adding a teen driver, buying car insurance can often seem to be a daunting and expensive process. However, getting insured has become the necessary part of your car purchase and will help you save a lot of stress and money in the future. With the emergence of internet based facilities, it is easy to find out the most suitable insurance quotes. The authentic websites help you get insurance quotes from insurance companies and ensures that you get to crack the best deal possible for your car safety.

Here are some reminders to ensure you get the best possible insurance for your car.

A car cover is mandatory in India and requires that you carry liable insurance, which pays when a damage is done to yourself, your car and others. It is advisable, go for a comprehensive car cover that will help you protect against third party losses as well as your own car damage. If this is your first car and you don't already have insurance, you'll need it before you drive the car off the roads. In addition, if you’re financing the vehicle, then your lender will insist  you have an insurance at the time of the purchase as it is bought from your hard earned money.

For the ones who already own a car insurance but planning to buy a new car, should notify their insurance company about the purchase. The insurance rate will then be adjusted as per the new vehicle model. Make sure you inform them at appropriate time else you would be driving away without a coverage which can prove fatal in the event of any mishap. For adding a new car to your existing insurance it has slightly different set of rules for which you’ll need to contact your insurance provider.

Insurance companies provide you with a very valuable service, but that doesn’t mean you have to pay hefty fees to keep them happy. One of the ways to lower your insurance rates would be urging young drivers to keep clean driving records. Shopping online will help you avail different form of discounts. Car insurance comparison might be slightly tedious but the end result will help you save a lot of money in the future. 

Car insurance: no-fault claims are the Elephant in the room

If someone drives into the back of your car while you are stationary, you wouldn't expect to be penalized by your insurer would you? At least, I didn't – but that's exactly what happened to me.

The incident happened last summer when a van driver turned into the entrance to the car park I was parked just outside of (in a marked bay), damaging the rear bumper and paintwork of my VW Golf. The van driver admitted fault and we swapped insurance details.

I contacted my insurer,  which is part of the Admiral group, and it swiftly sorted out repairs to my car and, sometime later, claimed successfully from the van driver's insurer. I asked before I made the claim whether it would affect my premium – although I assumed it wouldn't as I wasn't at fault – and was assured it wouldn't.

Yesterday I was given a renewal quote and it has risen from approximately Car insurance renewal has been rising steadily, but I hadn't expected an increase of quite that much. In fact, I had assumed that my six years no-claims bonus would ensure I was paying roughly the same, which had been the case for the past five years.

So I asked Elephant: why the hefty rise? The lady I spoke to in the renewals department told me it was because of the incident last summer. Although it had been resolved and registered as a no-fault claim, the Admiral group charges higher premiums whether drivers are at fault or not. Apparently, now I have made a claim Admiral considers that statistically I am more likely to make another claim in the future.

And the increased insurance premium is not confined to the damaged vehicle: one of my colleagues, whose car was damaged by vandals last autumn while parked in London (the wing mirror on the pavement side was smashed off), found that although her car insurance premium was unaffected, when she came to insure a horsebox that will never be parked in London the insurer insisted on taking this previous – and in 30 years of driving, only – claim into account.

I suggested to Admiral that maybe I shouldn't have claimed at all and paid for the damage myself, but was I informed that I am legally obliged to report any incident to my insurer, whether I pursue the claim or not. So damned if I do or damned if I don't.

Apparently, the member of staff in the insurance claims department who told me my premium would be unaffected must have meant my existing premium, not my renewal premium. 

[Source: https://www.theguardian.com/money/blog/2012/feb/15/car-insurance-no-fault-claims-elephant]

Can I Transfer My Insurance To My New Car?

Your car insurance is critically important

Insurance in the United States is a big affair. The insurance companies that do business in this country cover almost everything. It is needless to say that car insurance is one of the most important types of insurance covers in the country. Apart from Virginia, New Hampshire and Mississippi, every other state in the country requires car owners to carry some auto insurance cover. And no matter how much you hate insurance companies and their agents, deep within your heart you know how important it is to be insured.

You just have to imagine what all can happen when you are driving. You could get into a collision that damages your car. Or you could get involved in an accident where you or someone else gets physically injured. Car accidents often have this tendency to turn fatal, where someone loses their life. The stupidest cases are those where a car is stolen. In all such cases, you stand to lose a lot of money if you don’t have car insurance cover.

It is important to know the kind of auto insurance you need. And here is where a professional insurance agent plays a big role. One of the primary reasons why people hate the concept of insurance is because they don’t understand most of it. They get fooled into buying something that they don’t need and end up paying more for cover that they don’t require. And when it comes to claiming for insurance, they end up paying more from their own pocket, something no one wants to do when they have insurance cover. A professional car insurance agent can offer need based cover.

Many consumers think that they need full auto insurance cover. The idea is not bad because then an individual covered under comprehensive cover doesn’t need to worry about any situation involving their vehicle. However, not everyone requires insurance cover. Someone may just require collision insurance or theft insurance, but they need an agent to let them know about their requirement.

As you can fairly clearly understand, a car insurance agent plays an important role in someone choosing cover for their vehicle. And because there are so many insurance agents around, it is critical to choose someone who has the reputation of being honest. Because many insurance agents work on their own, one has to find someone who knows what customer service is all about. In the domain of auto insurance, customer service would mean selling the correct policy and helping out when someone makes a claim. And the best insurance agents also stay in touch with their customers and also remind them about insurance premium payments and so on. This is the kind of service available from a very few agents and one needs to know who that person is close to them. Car insurance cover is important for any driver because accidents or thefts or other car related issues don’t announce their arrival. It is an experienced auto insurance agent that helps their customers to make the best choices.

[Source: http://articles.abilogic.com/40670/your-car-insurance-critically-important.html]

Car Insurance how is The Premium Calculated

Is Budget Car Insurance Cost Effective?

Budget car insurance is widely available on plenty of broker quote sites online.

If you have really good credit, you will automatically pay a lot less for car insurance than most people. Most insurance companies will pull a copy of your credit report as a matter of prudence.

It has been proven that there is a direct relation between your credit score and how likely it is that you will file an insurance claim with an insurance company. This means that if you are a high claimer and are looking for budget car insurance, it may prove difficult.

If you are seeking budget car insurance you could be construed as high risk.

In addition, your insurance company wants to know that you will pay your bills on time, so if your credit score shows that you pay bills late as a matter of routine, you may have some problems getting budget insurance.

Unfortunately, a lot of companies will judge you automatically via your credit score, including budget car insurance companies.

If you drive a fancy car, you can expect to pay more for insurance. New cars cost more to fix, so do expensive cars. Don't expect to get great budget car insurance if you drive a luxury car.

Some auto insurers have a rating system according to your car make and model. Each car has a number on that rating system from 1 to 27. Factored into these numbers are risk factors such as theft and also the overall safety of the vehicle. For example, older model cars that do not have air bags will probably be more costly to ensure as well therefore budget insurance will not fit this criterion.

If you find what you think is really cheap budget insurance, pay special attention to the "hidden" costs. If you are paying via instalment payments, you can definitely expect to pay a lot more over the long run because of administrative costs and interest that are factored into those payments.

When you get a budget car insurance quote, read the fine details.

Sometimes what you think is a good deal for budget car insurance may not be in the end.

If you have a newer vehicle, for example, find out what value your insurance company considers "replacement value" on your car. It may be worth it to pay a little extra to get the value of your vehicle at the time you insure it, rather than the blue book value. It may surprise you to find out that most insurance companies will not give you replacement value if you write your car off.

If you switch insurers, be sure to cancel the existing policy you have with your previous insurer, or you may end up paying both policies. Just because you decide to go with a lower cost policy does not mean that your previous insurer will automatically cancel your insurance policy.

It is a good idea to be aware of all the ins and outs of a lower cost insurance policy. Just because you are paying less for the cheapest car insurance does not mean that you are getting the best deal in the long run.

Due diligence is a must as budget insurance may not be the best option.

Car insurance in an expensive purchase therefore look to Budget Car Insurance to make savings, please see Specialist Auto Insurance for your best options.

Article Source: http://EzineArticles.com/expert/Steven_A_Wright/369999

Why should you have vehicle insurance

Check for the best deals on car insurance in town…

Who doesn’t want to save money? Whether it’s standing in a long line to get a shared cab or using torn jeans as if it’s a style statement, we have all done our bit to save money wherever we can. Motor insurance purchase  is mandatory in India, and a person should have minimum third party cover to get your motor on roads. There are hundreds of policies being sold by insurance companies with customized benefits to their existing and potential clients. These policies have to be renewed on a yearly basis.

Often the customer thing car policy is mandate and just shop any random policy. However, if the policy doesn’t match your preferred requirements then it may cause financial loss to you.  It is important that you compare policies in terms of benefits and features, discount and deals, claim settlements, etc. so that you get the best policy at the time of car insurance renewal.

Here are a few tips to save money at the time of car insurance renewal: 

Compare Policies

It may seem a little tedious tasks, but the pain is worth saving the money. With the help of online comparison sites you can now compare existing policy with the new ones from the comfort of your house or office. You can compare it at your convenience.

Read Fine Prints

Policy Package may seem to be a great deal with discounts. But it’s better to read the fine prints, terms and conditions and understand the hidden clauses while buying the policy. Read each policy detail carefully and understand their implications to avoid hassles in the future.

Calculate your vehicle value

It is extremely important that you calculate the car’s market value at the time of car insurance renewal. A little maths can save you from shelling out large premiums. A depreciating car value doesn’t need high amount of insurance. Once the depreciated value of the car is known, you can negotiate with your insurance agent  over the premium amount and save quite a lot.

No Claim Bonus

Every time you complete your car insurance year without a single claim you’re rewarded with No Claim Bonus points.  You can redeem the points against the claim amount or premium reduction. So check and see if you can avail of this benefit. If yes, then the discount will be deducted from your premium and you have to pay less for the current year. It is advisable, don’t claim for petty scratches or dent. Instead, accumulate your bonus points and go for higher claim or discounts

Claim Higher Deductibles

Experts suggest that by claiming higher deductibles, one can reduce the premium that is paid later. Voluntary deductible is the amount you pay at the time of the claim and if you pay a higher deductible as it converts into a sort of premium-discount over time.

Cross Checks

Remember that a lot of incorrect data are circulated on websites as well. It is better to cross check the offers and discount deals specified by calling up customer service or visiting the branch personally about the car insurance renewal offers. If you are doing it offline, hire a good and reliable broker for the job.

Things To Consider During Car Insurance Renewal

Used Car Buying Tips

This device will price your car insurance

A device that captures all your driving behaviour, right from how fast you go to when you apply brakes, will now help decide the cost of your motor insurance. For the first time in India, a private insurer has introduced telematics — the technology of long-distance transmission of information — to price motor insurance.

The device, which plugs into the car's on-board diagnostics (OBD), relays information on quality of driving and usage of cars to the insurance company, which uses the data to price the policy at the time of renewal.

Currently, four factors determine pricing of a vehicle insurance — its make, model, year of manufacture and location. Bajaj Allianz General Insurance has introduced Drive Smart — a policy which, at the time of renewal, will price insurance based on usage. The device and service is available for free to anyone who buys Bajaj Allianz's car insurance with the add-on covers.

"There are many car owners who use their car very sparingly and are very careful drivers who end up subsidizing others. Telematics will help us price insurance according to the risk," said Tapan Singhel, MD & CEO, Bajaj Allianz General Insurance.Vijay Kumar, president (motor insurance) at Bajaj Allianz, said, "The device will work on every car that has been manufactured after 2010 as all vehicles since then are OBD2-compliant." The Bharat Stage IV norms, which prescribe standards for car emissions, also include a mandate on on-board diagnostics.

The device connects the car to an app on the owner's smartphone and recognizes when the driver is over-accelerating or braking suddenly, or if there is a sudden impact. While the telematics helps the insurance company in gathering data, it provides car owners a host of benefits which until now required a separate payment of a few thousand rupees. For instance, the driver can request roadside assistance by tapping a button on the app in the event of an accident.

The owner can also set up notifications for every time the vehicle breaches a speed limit or goes outside a 'geo-fenced' area in the map. The owner can also share live and static location of the car with friends. According to Singhel, the technology will also enable the company to come out with a 'pay as you go' auto insurance plan where the individual is charged according to how much he uses the vehicle.

The add-on covers include round the clock roadside assistance, accident insurance, key and lock replacement cover and personal baggage cover. The add-on covers cost roughly 50% of the basic insurance. For instance, if the standard 'all risk' cover on a Honda City is around Rs 9,000, the policy with add-on rates would cost around Rs 14,000.

The importance of motor insurance

Motor insurance is mandatory as per the Indian law. It is a minimum regulatory requirement if you are driving on Indian roads. Whether it is a two wheeler, a four wheeler or any other type of vehicle. An insurance is required for vehicles used for both personal as well as commercial use. Today, here are two forms of motor insurance covers available under any comprehensive plan. The first one is offered for own damage cover while the second one covers third party damage. As per the legal obligation, a third party cover is the minimum requirement.Below is a list of the things covered under a comprehensive plan:

Bodily injury –If the policy holder or a third party gets affected due to an accident, it will be covered under a comprehensive plan.

Property damage - This usually refers to the property of the third person that gets damaged due to an accident or anything that happens during the process of driving.

Repairable damage –In the course of an accident if anything happens to the vehicle, then most part of the damage is covered under the plan. Under a repairable damage plan, things like damage as a result of wear and tear, damage to things like electrical and non electrical accessories, etc. will not be covered. The policy holder may have to take some add on rider in order to get all these things covered. It is needless to say that the policy holder has to shed an extra amount for additional benefits.

The internet is a very feasible tool to look for any type of motor insurance online. You can also buy insurance covers for specific damage such as the one caused due to natural disasters like heavy rains, tornado, etc. are covered under a comprehensive insurance policy. However, there are certain norms that need to be fulfilled. In certain cases, all the things are covered under just one policy, but, in some cases, you might have to take an additional rider in order to get all things covered. Let’s take an instance of engine damage which is a common problem during rainy days.Vehicles are affected the most, as a result of the unorganized drainage planning and improper infrastructure of Indian roads, Metropolitan cities are an apt example here. When your vehicle gets drowned in water, the engine becomes moist.

When you try to ignite the vehicle’s engine during this state, it further damages the engine making it even worse. Water can block the engine and the cost of engine repair is generally very high. In case of damage to the color, the interior as well as exterior damage costs may get covered under the comprehensive damage plan. The damaged engine won’t get covered under this plan.Most insurance providers offer a different add on cover so that the policy holder does not have to face issues in case of an emergency situation.The rainy day scenario is quite a common thing for people living in cities. Thus, taking into consideration the unpredictable climatic conditions in India and the weak public management crisis, you should always get your vehicle covered with a motor insurance in case any natural disaster takes place. Selecting a right motor insurance policy can help you save a lot in the long run in case any unfortunate incident takes place.