What Are The Important Car Insurance Terms You Should Know?

What Are The Important Car Insurance Terms You Should Know?

Making the proper judgments requires information. We’ve outlined the essential car insurance principles right here to help you make an informed decision.

What exactly is IDV?

The Insured Declared Value is the car’s current market value after depreciation has been taken into account. It is an essential part of your car insurance coverage since it decides the amount of compensation you will get. The IDV is given as “Sum Insured” in the event of theft or destruction of the vehicle.

What exactly is a No Claim Bonus?

If you don’t claim during your insurance period, you’ll be eligible for a No-Claim Bonus, which is a discount on your next premium. This reduction will increase with each year of claim-free driving until the auto insurance rate is cut by 50%.

What are the many types of add-on covers that are available?

We provide a selection of add-on coverage to provide additional protection against various dangers. Add-on coverage options include Nil-dep, NCB retention, 24×7 Roadside Assistance, Personal Accident cover, electronic accessories cover, and more.

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What are the advantages of a Nil Depreciation Policy?

You may already be aware that the value of your automobile depreciates over time. Asset depreciation is the cause of this occurrence. However, by adding a zero depreciation add-on cover to your Reliance General Car Insurance policy, you may protect yourself against depreciation losses. With a nil depreciation policy, you can rest guaranteed that your claim will be paid in full, with no deductions for depreciation.


Now that you’ve learned about the differences between the two types of car insurance policies, you’re probably thinking about which one to choose. Here are some helpful suggestions to assist you in making your decision: Individuals who wish to acquire automobile insurance usually choose Third party liability car insurance coverage since it is required by law.

A comprehensive automobile insurance coverage is the ideal option if you want total protection from losses caused by unanticipated incidents. You may also select add-on coverage according to the most critical risks to you. Find more information in this website  https://www.moneyexpert.com/car-insurance/