The extra safety net of own damage Bajaj Allianz car insurance provides the money you need to repair your vehicle in the event of an accident. Although third-party (TP) insurance is required by law to protect car owners, own damage (OD) insurance is an option for additional security. Make sure you comprehend the difference between comprehensive and third-party insurance.
Own Damage Car Insurance Benefits And Limitations
Own damage cover, as the name implies, assists with the expense of fixing your car when it is damaged. All of the following types of damages may be covered:
- Accidental damage insurance may cover the costs of repairs for any harm an accident may cause your car.
- Vehicle theft.
- Vehicle damage brought on by earthquakes, cyclones, landslides, rockslides, floods, etc.
- Damage brought on by lightning and fire.
- If any damage is sustained while the car is transported by air, rail, or road.
- Harm resulting from man-made catastrophes like terrorism, strikes, riots, and hateful acts.
Essential items include the following:
- You will not be covered for accidents outside your policy’s specified geographic boundaries.
- The car damage insurance claim process will not be accepted if you drive without a valid driving licence and are involved in an accident.
- If you use your private vehicle for racing, speed testing, or other business-related activities, no claims will be made if you are found to be operating a vehicle while intoxicated. Claims are subject to terms and conditions set forth under the motor insurance policy.
Factors Affecting Own Damage Car Insurance Premiums
Your car’s market value is its Insured Declared Value (IDV), the maximum amount covered in case of theft or severe damage. This value decreases as your car ages, impacting your insurance premium. A higher IDV means a higher premium, but the premium decreases as the car ages.
- Age Of The Car: The car’s age is a significant factor when determining the premium amount. The insurance premium is directly impacted by the lower depreciation and higher IDV of newer cars compared to older models.
- Vehicle Make, Model, and Variant: The premium and risk are directly correlated. Because there is a greater risk associated with insuring expensive cars, diesel vehicles, cars that are stolen more frequently, etc., the manufacturer, type of fuel, engine displacement, etc., of your car will all directly affect the price of your Bajaj Allianz car insurance.
- Car Cubic Capacity: Also abbreviated as “CC,” this term describes how big the engine is in your vehicle. Premiums for engines with cubic capacities greater than 1500 will be higher than those with CCs less than 1500.
- Location: The insurance premium is also influenced by the vehicle’s RTO (place of registration). Certain RTOs and locations are more risky than others because of factors like vehicle usage in busy areas, prior claims history, etc. These factors cause them to have higher premiums than other advantageous territories.
- No Claim Bonus (NCB): The no-claim bonus is crucial for determining prior claim history and driving habits. According to NCB, many insurers provide more significant premium concessions based on previous claim-free durations.
- Usage: The car insurance sector is trending towards usage-based insurance. You can save on premium depending on how much and how well you drive. Your premium decreases as you go more safely and less, and vice versa.
- Frequency Of Claims: The frequency of insurance claims made on the policy can impact the premium amount. If you’ve made frequent claims in the past, insurers may consider you a higher risk, leading to an increase in premiums. Maintaining a claims-free record may contribute to lower premiums over time.
Standard T&C Apply
All savings are provided by the insurer as per the IRDAI-approved insurance plan.
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.