Features and factors of car insurance premiums : MeriCAR

Traffic and rising costs of car repair & service are the indicators of valuable car insurance.

Insurance for your car is set to get more expensive this year. Every car owner must know the features and factors of car insurance premiums.

Features of vehicle insurance: It is better to check online for insurance providers. There are many insurance agents approaching you at the first place. Your new car dealer may advice you for insurance. Insurance is usually expensive from a car dealer.

Read the insurance documents carefully. Car insurance has its own list of additions. Insurance policy includes damage/loss of your vehicle due to natural calamities, theft, accident and terrorist activities. By paying additional premium accessories like music system, air-conditioner, etc can be covered. Car insurance covers only book value of the damaged parts. Premiums are paid by car owner annually. The insurance company pays for cost of damaged parts which needs to be replaced and the minimum labour cost to repair car. The insurance doesn’t include major loss, mechanical and electrical breakdown. Insurance is not valid when vehicle is used outside the geographical area.

Premium determining factors: The Insurance premium rate depends on model, cubic capacity, area or locality of registration, expected usage in terms of mileage, theft rate, age of vehicle, safety threat, etc. A new vehicle means higher insurance premiums. Commercial use of your vehicle will push up the premium rates.

Insurance Claim Procedure: In case of accident, following documents are a mandate:
• Proof of insurance policy
• Original and a copy of Registration Book.
• Original and a copy of Driving License of the person driving.
• FIR in case of accident involving Third Party Injury or Damage.
• Claim form along with the original estimate of repairs obtained from the workshop.

Source: http://www.traffline.com/blog/car-insurance-must-remember-these-things/

Extended Car Warranty Plan – a game plan. Check out

Warranty is very cool word and gives every car buyer piece-of-mind. Majority of car warranties are done based on assessment and condition of the car at the time of the offer of warranty.

car

Many car owners buy an extended warranty out of fear that their car will need expensive repairs just after the car manufacturer’s warranty expires, but actually that scenario is not very likely. Think! If you are worried about anything can happen to your car, you’d be better off buying a car with a proven track record for longevity and build quality.

I can see mostly warranty plans are to build customer base for repeat sales. Most companies offer limited coverage and many exclude items that are most likely to break. In India, car dealers offer extended warranties and few independent companies offering similar services. CarZ (Hyderabad) is offering Extended Warranty Plan.

In other countries, there are many independent agencies offer extended warranty after car manufacturer’s warranty gets expired.

Experts do not recommend it for stating reason that even if an item is covered in the offer, a dishonest warranty company will find reasons to delay or avoid paying claims. In India, car owners do not think much and go for the offer from dealers. Here are some guidelines when you purchase extended warranty plan:

1. Compare with other companies (If you can find independent companies apart from dealer)
2. Look for companies that offer low price with money-back guarantees.
3. View the contract online before you purchase.
4. Be sure you understand what is covered.
5. Make sure you see the actual contract and don’t base your purchase decision on a sales brochure.

Other alternative to extended warranty plan :

Do not buy it and save your funds for regular repair and get your car service regular at good car service center to avoid any surprise!

More reading and source:
http://cars.about.com/od/buyingadvice/a/extwarranty.htm

Worried about car repair costs? Check out nil depreciation policy

Insurance companies are coming up with new `nil depreciation’ policy. This policy will cover repair and replacement cost of parts from bumper to bumper at no cost to customer and applicable to both metallic and non-metallic.

This is available as an add on cover to the private car package policy and roughly costs an extra 0.40% to 0.65% of the Insured’s Declared Value (IDV) depending on the age of the vehicle up to 1500 cc. For vehicle above 1500 cc, the premium load is 0.45% to 0.70% from one to three years.

This means a new car with an IDV of Rs 3 lakh, the additional premium will work out to Rs 1,200 for the first year which will go up to Rs 1,950 in the third year of the car.

The New India Assurance Company Limited, which provides nil depreciation as add on cover for private car whose IDV is between Rs 3 to Rs 21 lakh, covers a new car for three years under this policy. An official from the company said any claim after the first two admissible claims under the enhanced cover will be settled as per the provisions of normal private car package policy. “Also any claim occurring after three years from the date of purchase of the new car will be settled as per the provisions of normal private car package policy,” the official added.

Source: The Time of India

Image Source: http://www.auto-insurance.net.in

Car Servicing Price varies in Car Workshops & After-market trends

You can not believe if you can find pricing of one car workshop cheaper than other. Forget about dealer prices, there is a huge difference. Globally everywhere, workshop has own price structure for regular service and running repairs. Even car manufacturer like Maruti, Hyundai has somehwhat controlled prices at their authorized Car Service Station, but local independent car workshop still have different range of prices.

Following are reasons why price varies at independent workshops.

1. Labour Costs:
It varies from one workshop to another. Even car workshop owner tries to hire cheap mechanics, but some mehanics are costly depending upon their experience. Other workers are hired at different rates.

2. Infrastructure:
Independent workshops with small area are cheaper when it is owned by owner himself. Other rented one and bigger area would be costly.

3. Spare Parts:
Unbranded spares are bought with huge 70% margin from raw market which manufacturer never recommends for use, but people never know if cheaper spares have been used. Common spares are brake pads, clutch plates etc are easily available with different brands with different rates.

Trends are changing, corporates are building own workshop and also making franchisee. They are trying to standardize pricing to win trust of customers. Bosch has over 500 authorized service stations in India. Carnation, MyTVS and many corporate are coming up with their branded workshops.

Pic Source: solihull-service-centre.co.uk

Are you over charged at car workshop? Compare Cost.

Visit to any car repair service centre, look around, there is a possibility you will find a customer who would be having problem with his bill. The problem is wrong cost estimation or few items are overly charged. In other countries car owners still find some data from website to compare charges, but there is no such system in India. Even car manufacturer has listed down fixed charges for warranty servicing but if car needs any repair done, you can not guess what would be the bill.

Targets for selling spare parts at dealer and other workshop is another major reason for “wrong” recommendation of replacing parts even that is not required. Read story at link:-why do car mechanics suggest for extra parts.

As per experts start shopping for a repair facility before you need one; you can make better decisions when you are not rushed or in a panic. Once you have chosen a repair shop, start off with a minor job; if you are pleased, trust them with more complicated repairs later.

In India, mostly car owners start finding car service centre when their car has problem or somebody remind about servicing.

MeriCAR.com is helping car owners to SEARCH for car service centers in your nearest area and sends automatic Service Reminder once you are registered members.

Source:
5PointsAutomotive