Originally Posted by mailmishra
My Honda City's insurance expires in March, I bought car in last March. I am supposed to renew the same.I have got the following quote from one of the honda dealers. Attached is the quote.
- I have following questions:IDV value of car is different for Bajaj (IDV: 728395, Premium: 17578 ) and for ICICI (IDV: 646000, Premium: 16747) both for 0% depreciation. Bajaj has a high IDV value, hence higher premium.I want to know what is the right IDV value of the car that I should get. My car ex-showroom price when bought was 8.05L so what is the percent value that I should take IDV as?
- In the attached sheet there are two quotes from ICICI one as Comprehensive other as O% depreciation. What is the difference between both. Does it make sense to take 0% Depriciation?
- Also there is another offer of Honda Assure. They claim that parts like wiring/ECM/headlights are treated as Plastics by other insurer's, however Honda assure says it will treat it as an not plastic part and re-imburse its value less the depreciation applicable, as opposed to others who deduct 50% flat on plastic parts. Offcourse it comes at a premium.
- How is Honda Assure program different from those being offered by other Insurance where plastic parts are covered with 100% value. Or is it the same ?
- IF you check the sheet again, my no-claim bonus is somewhere 2.4 to 3 k . I do not understant why everyone encourages to save no claim bonus. I had damaged a fender and wiring eaten by rat, I refrained using insurance as everyone suggested that use no claim bonus. However I guess this amount is really not a match against what I will spend to get my car to normal. Please let me know if I am missing on something here?
- My insurance expires late in march. With such low No claim bonus, will it make sense for me to use insurance to get my car repaired.?Basically I have two stuff to get repaired.
- Fender : Needs denting and painting : estimated cost 4-4.5K . I expect to get full except the Rs.500 claim charge.
- Wiring harness : parts cost :4.5 k (plastic part hence reimbursment will be 50%) around 2.2k less 500 for claim charges.
So if I let go my no claim bonus, I am still at advantage.
Note : Both damage are done by animals (Will I get a claim?)
Guru's need advice on the same.
1. Your IDV should be somewhere between INR 6,85,000 & 7,20,000 (15-10% of Invoice price as the car is only a year old and assuming to be having a good market value).
2. I can not compare the quotes as am not aware of the rating structure. However for a new car it would make sense to have 0% Depreciation insurance
3 & 4. With a 0% Depreciation policy, it should/would be same as what Honda Assure is talking about. Unless there are some othe VFM additional features there
5. Insurance is not intended for the maintenance or running maintenance of the car. It should really be looked at as a risk minimisation/transfer tool so that you can protect your finances from being affected so as to leave your financial ability incapacitated.
In maintaining a car or any other vehicle, there are associated costs involved and those can not be avoided (other than fuel & servicing costs). Trying to use Insurance for meeting such expenses is not a good financial practice. In your case the total outgo for such expenses is about 1.5% of the cost of your car. I am sure you can manage that in your stride (if you did not have an insurance).
On the other hand, if you had a loss say to about 10% of you investment, funding that is not going to be easy for most. Such a case claim insurance. Insurance should come in to play when your loss is of catastrophic nature to your regular finances or financing ability.
This year your NCB is only 20% you can add it up to 50%. Say at end of 5 years you are repalcing your car with say the CRV. Figure out the saving you will make on that.
More than that with NCB you are establishing yourself more as a safe driver & a good customer. In an developed insurance market, this is really valueless. In certain markets you just can not get a Comprehensive Insurance without a safe driving history as proven by your NCB. otherwise you would have the ingnonimity of living with a "beginners comprehensive insurance" with all sorts of driving and usage restriction.
To answer your question - its up to you to decide if you want to claim or not.
Probably you can get both the claims paid.
Sorry for this long ramble- you see I am on my off (work) day today.
Thanks and Best Regards