The two kinds of cover
Third-party insurance is compulsory by law. It covers your liability for injury to other people and damage to their property, but not damage to your own car. Comprehensive insurance adds “own damage” cover for your car against accidents, theft, fire and natural events.
IDV: what your car is insured for
The insured declared value (IDV) is roughly the car’s current market value. It is the most the insurer pays if the car is stolen or written off. A very low IDV makes the premium cheaper but leaves you short in a major claim.
No-claim bonus (NCB)
Each claim-free year earns a discount on the own-damage part of the premium. The NCB belongs to you, not the car. When you sell a car you can keep your NCB and use it on your next policy, so ask the insurer for an NCB certificate.
Useful add-ons
- Zero depreciation: claims are paid without deducting depreciation on replaced parts.
- Engine protection: covers damage from water entering the engine, relevant in heavy rains.
- Roadside assistance and return-to-invoice are also commonly offered.
Buying a used car
The existing policy must be transferred into the new owner’s name. Apply promptly after the sale with the RC transfer documents; until the transfer is done, own-damage claims can be refused. Many buyers simply start a fresh policy in their own name.
We can help arrange the transfer or a new policy when you buy from us. Ask at the showroom.