Stumped by the Technicalities of Car Insurance Quotes? Here’s how to Decode It. - Baltic Master
Stumped by the Technicalities of Car Insurance Quotes? Here’s how to Decode It.

Stumped by the Technicalities of Car Insurance Quotes? Here’s how to Decode It.

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Does reading and comparing car insurance quotes make you want to pull apart your hair? No more! Make use of this guide to understand vehicle insurance policies and pick the best one like a pro.

If you drive, then you’re sure to own a car insurance policy – especially since it’s mandatory for all drivers to have one. In fact, you must set up an annual reminder to compare all the available options, so that you can renew your policy at the best price.

However, why do so many motorists balk at the idea of comparing vehicle insurance quotes? Is it because they don’t have the inclination to do it? Or is it because they are baffled by the car insurance jargon?

Don’t get Stumped by the Jargon

Comprehensive, Add-on cover, Deductible, Liability, and Premium – the list goes on. What do these terms mean?

Very often motorists don’t understand what any of these terms mean. This prevents them from finding the best policy that meets all their requirements at the best price.

This is why you should make yourself fluent in reading car insurance quotes. Once you understand the terms, you can find out the coverage, the cost of it and take the guesswork out of landing the best car insurance policy.

It’s time to get behind the wheel of deciphering the technical terms in your vehicle insurance quotes. Let’s get started.

Getting down to the basics,

What are the types of car insurance policies?

There are two major types – Comprehensive and Third-party.

·         Third-party insurance – This policy covers the damage to others due to your reckless or careless driving. For instance, you hit another car with your vehicle. When you have this insurance, you can claim the damage expenses to the other vehicle and its driver.

According to the Indian government, it’s mandatory to hold at least a third-party car insurance. The premium for this policy is dependent on your vehicle type, capacity and year of manufacture.

“Third-party insurance doesn’t cover any damage to your vehicle or you.”

·         Comprehensive Insurance – Just as the name implies, this covers complete damage expenses both to the third-party and you. This includes damage to your vehicle as well as the other vehicle in the case of an accident, and medical expenses to the third-party, you and the other passengers involved in the incident.

The comprehensive package also includes damage to your car due to any natural calamities, loss of vehicle and other repairs that occur while in transit. You can also opt to add accessories like the music system, air-conditioner as part of this policy.

“The Premium of Comprehensive Insurance is higher but offers you a wider coverage.”

Glossary of other terms in the insurance quotation:

·         IDV – This is the amount you can claim as coverage for the vehicle. This is decided based on the depreciation and current market value of your car.
·         No Claim Bonus – If you don’t make any claims during the term of your policy, you are eligible for a discount called as the no claim bonus. This ranges from 10 to 50% of the premium. Alternatively, if you make frequent claims, you will end up having to pay a higher premium.
·         Cover Note: The cover note is issued at the time of buying insurance and has a validity of 1-2 months. Make sure to get the complete policy document before the expiry date.
·         Add-Ons – These are the extra frills that you can get by paying a higher premium. Some of the popular add-ons are:
o   Zero Depreciation – When you choose this feature, you get the entire amount of the claim without any deduction due to depreciation.
o   Engine and Gear Protection – If your vehicle faces any damage to the gearbox and other parts of the engine due to leakage of lubricant, water ingression, etc., you can claim the amount for repair or replacement.

You can Compare Insurance Quotes like a Pro

Now that you’re sufficiently armed with knowledge, you can go ahead and pick the best car insurance policy that provides you with the best coverage at the lowest price. 

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