Insurance and road tax for new car

[hdi_pro]

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

[BaCkSeAtDrIVeR]

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.

[rjvora_2000]

Originally Posted by hdi_pro

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?

[HappyWheels]

Originally Posted by rjvora_2000

...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.

[hdi_pro]

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

[rjvora_2000]

Originally Posted by HappyWheels

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.

[HappyWheels]

Originally Posted by rjvora_2000

...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!

[rjvora_2000]

Originally Posted by HappyWheels

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.

[sushantr5]

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.

[rjvora_2000]

Originally Posted by sushantr5

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.

[hdi_pro]

"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

[csentil]

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.

[rjvora_2000]

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/-

[csentil]

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?

[rjvora_2000]

Originally Posted by csentil

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.