Demystifying Car Insurance Jargon: A Comprehensive Guide
For many, navigating the complexities of car insurance can be akin to deciphering a foreign language. The intricate terminology often baffles clients needing clarification, making it challenging to grasp the nuances of their policies. In this comprehensive guide, we embark on a journey to demystify the jargon associated with car insurance, empowering clients to make informed decisions and confidently navigate the intricacies of their coverage.
Own Damage Cover And Premium
In car insurance, own damage is the harm inflicted on the insured vehicle. If you have comprehensive coverage, it includes protection against your own damage. The corresponding cost for this coverage is termed the own damage premium, a mandatory payment for the benefits it provides. Claims are subject to terms and conditions set forth under the motor insurance policy. *
Third-Party Liability
Third-party liability involves your financial obligation if your vehicle causes harm to others or their property. This responsibility arises in the event of injury, demise, or damage caused by your car. Understanding this term is crucial, as you may be legally obligated to compensate third parties for losses incurred. Claims are subject to terms and conditions set forth under the motor insurance policy. *
Compulsory Deductible
Every car insurance policy features a set amount, known as the compulsory deductible, mandated by law. This deductible serves as a cap on claims. If a claim surpasses this amount, the insurer covers only the excess. Clients must recognise that the compulsory deductible is their responsibility and cover this cost before the insurance provider steps in.
Voluntary Deductible
In contrast to the compulsory deductible, voluntary deductibles are optional. You can choose a higher voluntary deductible, leading to reduced claim liabilities for the insurance company. While this choice means clients pay more out of pocket for a claim, insurers offer concessions on premiums, providing a trade-off between upfront costs and long-term savings. ##
Add-Ons
Add-ons are additional coverage options available for comprehensive car insurance policies. These features enhance coverage but come at an additional cost. Clients can choose add-ons like roadside assistance, zero depreciation cover, engine protection, and more based on their specific needs and preferences. You can buy these add-ons when purchasing a new policy or during renewal using the Bajaj Allianz car insurance app. Claims are subject to terms and conditions set forth under the motor insurance policy. *
Zero Depreciation Cover
Zero depreciation cover eliminates the impact of depreciation on car insurance claims. Typically, insurance deducts depreciation from repair costs, leaving clients with out-of-pocket expenses. With this cover, depreciation is zero, and the insurance provider pays the entire repair cost, reducing financial burdens for clients. You can use a four-wheeler insurance premium calculator to estimate the costs of premiums to be paid. Claims are subject to terms and conditions set forth under the motor insurance policy.
Insured Declared Value (IDV)
The Insured Declared Value represents the coverage level of a comprehensive car insurance policy. Calculated based on the vehicle’s current market value, excluding additional fees and accounting for depreciation, the IDV is crucial. In case of total loss or theft, the insurer pays out the IDV to the client.
Armed with a deeper understanding of insurance language, individuals can now confidently approach their policies, ensuring they select coverage tailored to their needs. This guide serves as a compass, guiding clients through the intricate landscape of car insurance terminology, fostering informed decisions and peace of mind.
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*Standard T&C Apply
## All savings are provided by the insurer as per the IRDAI-approved insurance plan
Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
