Go Back   Team-BHP > BHP India > Team-BHP Reviews > Indian Car Loans & Insurance


Reply
 
Thread Tools Search this Thread
Old 18th January 2009, 19:10   #1
BHPian
 
Join Date: Jan 2009
Location: Noida
Posts: 91
Thanked: Once
Default Insurance and road tax for new car

Hi all,

Insurance:

I was shopping around for insurance for a new car(Vista Aura Quadrajet in Noida)

The dealer is quoting almost 18k and when I asked some of the insurance companies they quoted 12k-14k.

Which one is better.Should I go with the dealer or why is there such huge difference between direct quote and dealer quote.

Would the claims process be any different if I went and got the new car insurance directly from the Insurance comp.

Registration:

what is the road tax rates in Noida.

Thanks for your prompt reply.

-hdi
hdi_pro is offline   Reply With Quote
Old 18th January 2009, 20:20   #2
Senior - BHPian
 
Join Date: Jun 2007
Location: Kochi
Posts: 2,147
Thanked: 143 Times
Default

Interesting. What are the concerned insurance companies?

Your insurance can be split into two main parts - the compulsory part requires insurance coverage for third parties and their properties, plus coverage for a paid driver (whether you employ one or not). The premium on this part is fixed, and does not change. This comes hardly to 1K for a hatch. (Depends on engine capacity).

It is premium on the remaining part - the "own damages / theft ,etc part - that varies hugely. OF course, first with the insured "value" - IDV as it is often referred to. Make sure that you get an IDV for the invoice / bill value of the car.

Some insurers have tie ups with manufacturers and their service centers; so you will not have to pay anything for repairs; you will be billed for that part the insurers will not cover any way - like plastics, "standard deduction" etc.
BaCkSeAtDrIVeR is offline   Reply With Quote
Old 19th January 2009, 08:53   #3
Senior - BHPian
 
rjvora_2000's Avatar
 
Join Date: Mar 2008
Location: Mumbai/Mulund
Posts: 1,656
Thanked: 41 Times
Default

Quote:
Originally Posted by hdi_pro View Post
Hi all,

Insurance:

I was shopping around for insurance for a new car(Vista Aura Quadrajet in Noida)

The dealer is quoting almost 18k and when I asked some of the insurance companies they quoted 12k-14k.

Which one is better.Should I go with the dealer or why is there such huge difference between direct quote and dealer quote.

Would the claims process be any different if I went and got the new car insurance directly from the Insurance comp.
Hi Hdi,

Do you know some good agent? If yes ask a quote from him.

Normally dealer's need high insurance commission that's why they give you less discount on premium. They charge high and get high % of commission form insurance company. Basically they are interested in their income and nothing else.

Going directly to insurance company may create a problem for you in case there is a claim.

There is a lot of difference in the rates what you have been quoted from the various insurer, ask in writing the bifurcation of premium and you will understand by seeing the quote, why there is so much difference in the quote?

Last edited by rjvora_2000 : 19th January 2009 at 08:55.
rjvora_2000 is offline   Reply With Quote
Old 19th January 2009, 09:19   #4
Senior - BHPian
 
Join Date: Dec 2007
Location: Dubai
Posts: 3,860
Thanked: 128 Times
Default

Quote:
Originally Posted by rjvora_2000 View Post
...Going directly to insurance company may create a problem for you in case there is a claim...
I doubt that. Agreed that the dealer will get commission from the insurance company for the sale and his commission is dependent on the amount. But going directly to the insurance company will not create any problem.

The only issues might be:
1. you will have to run around to get the details from the dealer to the insurance company to get the insurance papers ready in time. this might get even more complicated if you are going to a insurance company that does not have an in-house laison agent.

2. You might will lose out a portion on the discount offered since the total discount offered will also be pro-rated from this insurance amount.
HappyWheels is offline   Reply With Quote
Old 19th January 2009, 09:33   #5
BHPian
 
Join Date: Jan 2009
Location: Noida
Posts: 91
Thanked: Once
Default

Thanks a ton for all your replies.

I will try to get a quote from relevant PSU's and Private insurance agencies with the complete breakdown and will then go from there.

I will post it on the forum.(prob by tommorow)

-hdi
hdi_pro is offline   Reply With Quote
Old 19th January 2009, 09:35   #6
Senior - BHPian
 
rjvora_2000's Avatar
 
Join Date: Mar 2008
Location: Mumbai/Mulund
Posts: 1,656
Thanked: 41 Times
Default

Quote:
Originally Posted by HappyWheels View Post
I doubt that. Agreed that the dealer will get commission from the insurance company for the sale and his commission is dependent on the amount. But going directly to the insurance company will not create any problem.

The only issues might be:
1. you will have to run around to get the details from the dealer to the insurance company to get the insurance papers ready in time. this might get even more complicated if you are going to a insurance company that does not have an in-house laison agent.

2. You might will lose out a portion on the discount offered since the total discount offered will also be pro-rated from this insurance amount.
"in writing the bifurcation of premium" - Once you have this thing from dealer and insurance company and Insurance agent then I don't think there will be portion of loosing a insurance amount.

Were as if there is a DST guy of an insurance company, then there are lot of problem people have faced in Tbhp it self. Problem with them is they over commit and under deliver.

The only reason I say to go to Insurance agent is you get better service in case of renewal, claim, policy documentation and if there is any kind of service issue with insurance company.
rjvora_2000 is offline   Reply With Quote
Old 19th January 2009, 09:42   #7
Senior - BHPian
 
Join Date: Dec 2007
Location: Dubai
Posts: 3,860
Thanked: 128 Times
Default

Quote:
Originally Posted by rjvora_2000 View Post
...Were as if there is a DST guy of an insurance company, then there are lot of problem people have faced in Tbhp it self. Problem with them is they over commit and under deliver...
The ever present problem!
HappyWheels is offline   Reply With Quote
Old 19th January 2009, 09:57   #8
Senior - BHPian
 
rjvora_2000's Avatar
 
Join Date: Mar 2008
Location: Mumbai/Mulund
Posts: 1,656
Thanked: 41 Times
Default

Quote:
Originally Posted by HappyWheels View Post
The ever present problem!
That's the reason why I steers on Insurance Agent.

He is the person whom you can catch any time and he will give you service, because he need's business from you not for one year but every year.
rjvora_2000 is offline   Reply With Quote
Old 19th January 2009, 11:19   #9
BHPian
 
Join Date: Dec 2008
Location: Pune
Posts: 553
Thanked: 214 Times
Default

Dealers generally try to make margin of 20% by selling own insurance. I got it done for Rs.11600 for my new Indica Vista Aura QJD from ICICI Lombard. While dealer was offering same insurance from same company for Rs.15k.
sushantr5 is offline   Reply With Quote
Old 19th January 2009, 12:35   #10
Senior - BHPian
 
rjvora_2000's Avatar
 
Join Date: Mar 2008
Location: Mumbai/Mulund
Posts: 1,656
Thanked: 41 Times
Default

Quote:
Originally Posted by sushantr5 View Post
Dealers generally try to make margin of 20% by selling own insurance. I got it done for Rs.11600 for my new Indica Vista Aura QJD from ICICI Lombard. While dealer was offering same insurance from same company for Rs.15k.
Wow that's a very big difference. Nice input for me also. I think when it comes to Tata car's the discount varies too much. - The reason best known to Insurance companies.
rjvora_2000 is offline   Reply With Quote
Old 20th January 2009, 10:07   #11
BHPian
 
Join Date: Jan 2009
Location: Noida
Posts: 91
Thanked: Once
Default

"Comprehensive" Quotes from two Insurance companies

ICICI Lombard : 11550
Sundram :11776
Dealer Quote(from the same Sundram)-17990

I spoke with the guy from sundram and he told me that Insurance is calculated as follows

IDV : 5% of the Ex showroom price(in my case 4,72,085)=23600

Premium is 3.28% of IDV=14707
20% discount on the Premium=11766

The dealer has an arrangement with Sundram.So I think I should go along with Sundram(even though the price is a bit higher).

What do you think?

-hdi
hdi_pro is offline   Reply With Quote
Old 20th January 2009, 15:11   #12
Senior - BHPian
 
Join Date: Feb 2007
Location: Bangalore
Posts: 1,350
Thanked: 31 Times
Default

Correct 3.28% is the Insurance premium for cars between 1000-1500 cc.

So IDV = (472085-23604) = 448480.8

Insurance Premium = 3.28% of IDV = 14710

After 20% Discount = 11768.

However where is the TPPD (Third Party Property Damage), Accident Cover to Owner-Driver (Rs. 100), Liability to Paid driver (Rs. 25) and then ST@12.36%? These don't seem to be added up to your insurance ??

All these usually add up to the Insurance premium.

I'm not sure how much is the TPPD. For cars above 1500cc it is 2.5K.
csentil is offline   Reply With Quote
Old 20th January 2009, 16:19   #13
Senior - BHPian
 
rjvora_2000's Avatar
 
Join Date: Mar 2008
Location: Mumbai/Mulund
Posts: 1,656
Thanked: 41 Times
Default

I think this should be the calculation:-

IDV - 4,48,480/-
Rate - 3.283%
Basic OD - 14724/-
Less discount (20%) - 2945/-

Net OD prem. - 11779/-

Basic TP - 800/-
O.D. - P.A. - 100/-
L.L. to driver - 25/-

Net TP - 925/-

Basic total 12704/-
S.T. 1570/-
Net payable - 14274/-

rjvora_2000 is offline   Reply With Quote
Old 20th January 2009, 17:35   #14
Senior - BHPian
 
Join Date: Feb 2007
Location: Bangalore
Posts: 1,350
Thanked: 31 Times
Default

I'm still wondering how the comprehensive quote comes to only 11.7K ? Unless he's passed on a bigger discount which I doubt.

rjvora, Has that guy conveniently forgotten to give those details or is there something that doesn't quite meet the eye?
csentil is offline   Reply With Quote
Old 20th January 2009, 17:50   #15
Senior - BHPian
 
rjvora_2000's Avatar
 
Join Date: Mar 2008
Location: Mumbai/Mulund
Posts: 1,656
Thanked: 41 Times
Default

Quote:
Originally Posted by csentil View Post
I'm still wondering how the comprehensive quote comes to only 11.7K ? Unless he's passed on a bigger discount which I doubt.

rjvora, Has that guy conveniently forgotten to give those details or is there something that doesn't quite meet the eye?
I think we should wait till 'hdi' reply's.
Bigger discount on Tata - I am happy to hear that.
rjvora_2000 is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
Tax on Tax? Road tax should be calculated on ex-factory price (not ex-showroom)! SILVERWOOD The Indian Car Scene 88 30th July 2017 12:39
Congestion tax, Road tax and Regn taxes on the anvil GeekSrik The Indian Car Scene 24 20th March 2012 07:47
Need help regarding insurance and road tax hormaz Shifting gears 1 11th April 2007 06:07
Road tax or income tax? SLK The Indian Car Scene 6 5th October 2004 14:52


All times are GMT +5.5. The time now is 04:55.

Copyright 2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks