Car Insurance Explained | Car Insurance | Auto Insurance

So, in this video, we will discuss about car insurance. Now, what all things we will discuss in this video, first of all, let me tell you that, so that you get clarity in a way, that what all things we will see in this video. Look, first of all, I will tell you a little bit, that you must have heard a lot of terms, like, what is our third-party car insurance? We will see a little bit about that. Then you must have heard a term, that it is first-party car insurance, which we also call comprehensive insurance. Then we will see about that. Okay, you must have heard a name like that, zero depreciation insurance, which we call zero debt insurance. Or some people call it bumper-to-bumper insurance. Then we will see a little bit about that. Similarly, you must have heard IDV, that is, insured declared value. For example, suppose you have a car, that car is 4 years old today. You bought that car worth Rs. 10 lakhs. Today, that car is 4 years old. Now, you have to renew its insurance. So, now what will you consider the value of that car? Will you consider the value of that car as Rs. 8 lakhs? Will you consider it as Rs. 6 lakhs? Will you consider it as Rs. 4 lakhs? Will you consider it as Rs. 5 lakhs? What will you consider the value of that car when you take new insurance? So, that is called IDV, that is, insured declared value. Then we will see a little bit about that. Similarly, there are a few more points. Wait a minute, everything was written here. Let me tell you once again. Okay, we will see zero depreciation insurance. Okay, apart from that, there is one thing, RTI, that is, return to invoice. For example, suppose you bought a new car worth Rs. 10 lakhs 4 years ago. Okay? Today, its IDV, I am taking an example, that suppose its value is Rs. 5 lakhs today, we are assuming it. Now, if the car is stolen tomorrow, then what is the role of this RTI? That is, in case the car is stolen, then will we get Rs. 10 lakhs or Rs. 5 lakhs? We will see a little bit about this. Okay? Okay, then I will tell you a very important thing. For example, let's do one thing, let's start the video from here. The basic things from here, let me do one thing first. I had to tell you one more thing in this. Look, there is one thing. First, let me tell you a little bit about this. Okay? Then we will start the video. Look, this is a quotation. I have a known. He had to buy a new car recently. The car was XUV. Okay? There are 2-3 in this too. Okay? That was XUV AX7 model of the car. And this was automatic. Okay? The quotation of this, you can see the slip in front. Look, here is the name of the agency. I have blurred it. Okay? This is the name of the agency. I have blurred it. Because it is not allowed on YouTube to show anyone's personal information. Okay? So, this was the quotation. The value of the car was Rs. 20,99,000. Almost Rs. 21,00,000. This is the value of the car. X showroom price. Apart from that, there will be insurance too. Then RTO charges will be charged. After doing all those things, the value of the car on road was Rs. 23,30,000. What I want to tell you in this, Look, when we went to take this quotation, to take the quotation, I have a known. He had to buy. So, when we went together to the agency to take the quotation, the agency people said, Okay, the price of X showroom is Rs. 20,99,000. There is a little negotiation when you sit on the table. Apart from that, he said, the insurance will be given by the agency itself. Because when a car is in demand, the agency people take advantage of it. Okay? What they say, the insurance, by law, if you are going to buy a new car, then it is your wish. You can say that I will get the insurance done myself. I mean, I will get the insurance done myself. You can say this. But many times, the cars that are in high demand, the agency people say, that we will get the insurance done by ourselves. So, what is the value of the insurance? They said, the insurance will be Rs. 1,05,000. So, okay. I mean, we obviously know about insurance. But obviously, Rs. 1,05,000 and a car of Rs. 21,00,000, behind that, he is doing insurance of Rs. 1,05,000. So, he is charging a very high price from me. But no problem. We said, what will be the negotiation in this? He said, you will have to get the insurance done by the agency. The rest, of Rs. 5,00,000. No problem. I am assuming it to be Rs. 1,05,000. Now, you saw these things. Understand one rule. Whenever we, we will understand all the points Whenever we of a new car, let's say, a brand new car, is standing in the showroom, when we get the first insurance done, then, the ex-showroom price what is the ex-showroom price? Rs. 20,99,000. Reduce 5% of it. That is, when you are getting the insurance of the car for the first time, that is, you are getting the insurance of a brand new car, then, the ex-showroom price, in that, 5% of it, let's say, the car depreciated. Like, when the car came out 5% of its value broke. So, the ex-showroom price, reduce 5% of it. That is, calculate 95% of it. It will be Rs. 19,94,050. So, this Rs. 19,94,050, the first insurance, IDV, this will be considered. That is, Insured Declared Value. That is, when I will get my first insurance done, then I will get the insurance of this amount. Understood? So, for this amount, the agency is telling me that it will cost me Rs. 1,05,000 to get the insurance done. No problem. Then we come home. So, the condition of the first insurance is that, it is like this, that for one year, for one year, there is first-party insurance. Plus, for three years, there is third-party insurance. I will tell you all these things later. But, understand it once. So, for one year, there is first-party insurance. And for three years, there is third-party insurance. When we get insurance from the agency for the first time. That is, whenever we get insurance for the first time, then it is third-party for one year. Sorry, first-party for one year and third-party for three years. Understand? I will explain all these things to you. I am just telling you a little comparison. Then, when we came home, we applied ourselves. We went to ICICI Lombard. We went to its website. We applied ourselves. So, look here. What do we say? Rs. 19,94,050. That is, we calculated 95% of it. How much did we pay for the car? Rs. 20,99,000. Okay? Calculate 95% of it. That is, how much is the IDV? Rs. 19,94,050. This is the same thing. And what is written here? One year plus three years third-party. That is, comprehensive for one year, that is, first-party insurance, plus third-party insurance It is the same thing. How much insurance is this giving me? Everything. And I have added everything in it. Zero depreciation. I will explain all this to you. I am just telling you a comparison. I have added everything in it. Zero depreciation. 24x7 roadside assistance. Engine protection cover. Consumables. Key and lock replacement. RTI, Return to Invoice. That is, I have added everything. That is, there is nothing in it that I have missed anything. And this insurance, how much am I getting while sitting at home? Rs. 61,503. Agency, the same thing was giving me how much? Rs. 1,05,000. Suppose, it would have negotiated a little. I say, it would have reduced it by 10,000. It would not have done more than this. The same thing, it was selling me for Rs. 95,000. And how much am I getting while doing it myself? Rs. 61,503. Why did I keep this thing in the first video? The reason is, whenever we take insurance, okay, whether it is renewing your car's insurance or like we are considering car insurance, same to same, bike insurance, Activa insurance, two-wheeler insurance, everything is the same. It is the same as it is. Now, whether you take four-wheeler insurance or two-wheeler insurance, in India, 90% of such people who would have caught a dealer near their house or would have gone to a shopper, they would have told him to renew their insurance. Or, suppose, if you bring a new car, most of the people get it done from the agency. What do we know about insurance? Will I miss anything? Do you understand? If I miss something and, God forbid, if I have an accident, will I get a claim or not? First, people have a lot of fear. Second, people have no knowledge. I say, this is such an easy thing, car insurance and, two-wheeler insurance, that even a 5th grader can understand. So, in this video, I wanted to tell you that, from now on, you can get insurance from any company. If you like ICICI, get it done from ICICI. If you like HDFC, get it done from HDFC. Whatever company you like, get it done from ECHO. If you like Policy Bazaar, it is your choice. I am not saying that I will suggest that you get it done from this or that company. In this video, we will learn that when we take a car insurance, we have to add a lot of things to it. Do you understand? And, what do those things mean? But, now you have understood one thing. You have understood the difference. Now, I will tell you everything after this. Then, I will tell you one more example. For example, we went to find a new car for someone. I use a car. I have a venue car of Hyundai. Its insurance was, its ID was also coming, that is, the insurance declared value was 4 years old. So, I spent 5 lakh rupees when I recently renewed the insurance. So, when I got a quotation from outside that the insurance was over when I got it from the shop, then he sent me a quotation of 18,000 rupees. When I did the same thing then by adding all those things, I got 11,000 rupees by myself. So, you understand that I was paying 7,000 rupees extra for that, which I can do at home in 2 minutes. Do you understand? So, in this video, let's understand everything first. Then, we will move ahead. Now, first, let's understand what are the things like first party, third party, etc. Then, we will come to how to purchase Let's understand step by step. Second thing, if you find the video a little informative till now, then please like the video and subscribe Please, there is a request for which you have to pay some money. Now, the first thing that comes is what is third party insurance? Now, suppose this is our car and it is going on the road. A car is coming from the front and this is also coming on the road. Now, these two cars met with an accident and it was our fault. Now, my car is also ruined and this car is also ruined. But, I had only third party insurance. Now, who is third party? Any other car coming on the road, for us, any car is third party. Now, this car, our car, had only third party insurance. So, it means it was my fault. So, my insurance company will pay for the damage of this car and this person like an injury or the car is ruined. All that money my insurance company will pay to repair this car. Now, the question comes that even this person will have insurance. So, why won't his company pay? See, the reason is whose fault is it? It is our fault. So, our insurance company will pay to the other party. Same, another case, suppose, first party insurance. Suppose, our car is going, another car is coming. This time also, it is our fault. Our car is also ruined. The car in front is also ruined. Now, the question comes that it was our fault. So, what will happen in this case? Because, we have first party insurance. So, it means the damage of the other person will be paid by my insurance company. My damage will be paid by my company. This is called first party insurance. And, the one above is called third party insurance. Now, in India, if you don't get first party insurance, suppose, you say, look, if I am getting third party insurance, suppose, take an example, it will cost Rs.100. So, the same thing, first party insurance will easily cost Rs.130. Do you understand? So, the rule in India is that even if you don't get first party insurance, you won't be fined. But, at least, you should have third party insurance. Otherwise, if the police catch you, you will be fined. Why is it kept like this? Because, the government or the law says that your car has been damaged, you are responsible for the damage. But, the other person has lost a lot of money. His car has been damaged. Now, suppose, he doesn't have money. It was your fault. His insurance company is not paying. In that case, you should have third party insurance. At least, your insurance company should pay for it. You have to take the accountability of the other person. That's why, third party insurance is mandatory in India. If you don't get first party insurance, it's okay. You won't be fined if you have third party insurance. Okay? Now, there is a question. Okay, I understood first party and third party. But, let me tell you the next question. Our first party insurance, sorry, which we also call comprehensive insurance, has one more flaw. What is it? Suppose, the car has been damaged. Suppose, both the cars have been damaged. But, let's say, of Rs. 50,000 for both the cars. So, will our insurance company pay Rs. 50,000? Okay, there is one more thing. The insurance company is called second party. Okay? That means, our car has become first party. The insurance company has become second party. And, the car driving on the road is called third party. Okay? Now, if there is a loss of Rs. 50,000, will our insurance company pay us Rs. 50,000? The answer is no. Look, when we take only first party, I mean, when we take first party, then, third party will come with it. Okay? I mean, the comprehensive insurance will be taken by first party plus third party. Got it? It doesn't happen that you take only first party. Okay, after that, third party is mandatory. So, you have to take it. Now, the question is, if I have first party insurance, then, in that case, let's say, if there is a loss of any plastic part, if there is a loss of any plastic related part in the car, let's say, of Rs. 10,000, then, I will only get half of it, that is, I will only get a claim of Rs. 5,000. Similarly, let's say, if a glass or windshield breaks, then, in this case, I will only get 50% of the money. Let's say, if there is a loss of Rs. 20,000, then, I will only get Rs. 10,000. Similarly, if there is a loss of rubber or tyre, then, I will only get 50%. That means, most of the things in the body-to-body of the car get damaged. And, if I only have first party insurance, then, I will only get 50% of it. I will have to give 50% from my pocket. But, now, there is a question that many people will say that we see that whenever there is an accident of a car, if he has insurance, then, he goes to the agency and stands up. He goes to the agency and stands up. And, the agency says that a file charge of Rs. 1,000, Rs. 1,200, apart from that, the entire claim is given by the company. Yes, this is what happens. But, it is called Zero Depth Insurance. It is called Zero Depreciation Insurance. Or, some people call it Bumper-to-Bumper Insurance. In this case, suppose, this is our car. There was an accident on the road. The car got damaged. Now, suppose, what do we say? Now, we picked up this car and took it to the agency. We took it to the agency. The agency people put it up in their workshop. Now, we put up a file that there was an accident. Then, they will ask how it happened. Whenever there is an accident on the road, make a video of it. Make a video or click a photo. This is useful as an evidence that there was an accident. Now, we put it up in the agency. The agency people said okay. Now, the thing is if we have taken Zero Depreciation Insurance as well. Do you understand? What happens in Zero Depreciation? Now, suppose, if there is any claim or any expense, then who will pay all that money? Agency will pay. I mean agency in the sense sorry, my car insurance company will pay. We parked the car in the agency. So, my car insurance company will pay all the money. Now, some people will say let's do one thing. Let's take a third party. It will be cheaper. Okay. Let's take Zero Depreciation with that. Then, why should we take first party insurance? Because in Zero Depreciation, everything is covered. Body to body, all the expenses are covered. You will just need a file charge of Everything else is covered. The answer to this is that you have to take third party. Okay. If you want to take Zero Depreciation, with this, Comprehensive, that is, taking first party insurance is mandatory. That is, you cannot say that take third party plus Zero Depreciation. No. You have to take Comprehensive. It has an add-on Zero Depreciation. Do you understand? So, these are the things. Like, you can go to HDFC website, ICICI, wherever you go, whether you go to ECHO, all the big brands, wherever, you will see such an interface when you purchase a policy. So, like, you type in it what all things you need. Like, Zero Depreciation, this is the most important thing. You have to take it. So, if you type it like this, then the rate will come in front of you that the policy is 4000 rupees. If you put this, then the policy will be of 4500 rupees. Okay, Zero Depreciation. Then you say that I also need roadside assistance. Suppose, if the car spills somewhere, then you will call your insurance company that I had an accident here, I have to tow the car and take it. Suppose, if you select this too, then your policy will increase from 4500 to 4800 rupees. This should also be taken. Then there is Engine Protection Cover. Do you understand? If you select this, then your policy will increase to 5200 rupees. By doing this, whatever things are there, you have to select them. Okay, now one more question. Zero Depreciation Insurance, which is there, like, suppose this is our car, it had an accident. So, it gives bumper to bumper cover. Do you understand? That is, if anything goes wrong in the body, the car gets damaged in some plastic parts, something goes wrong let's suppose some part of our glass breaks, it protects all those things. That is, it will give you 100% money. But, suppose, some oil in the engine leaks, and you Engine Protection Cover. Like, what is written here, see here, Engine Protection Cover, you have not taken this. You thought that I will take zero depreciation, the whole car is covered. But, the body to body cover of the car, some oil in the engine is seized, the engine is damaged. So, you will not get the cost of the engine. Do you understand? If there is any damage related to the engine, and you want to get the full claim, for that, you will have to take Engine Protection Cover. Do you understand? So, this is the thing. So, don't get confused. Zero depreciation, see till now, let's recap a little. Third party is there, that if anything happens to the other person, it is not our headache. Then, whether his engine is damaged or anything is damaged, it will be given by our company. If I am taking the first party insurance for myself, in that case, if I am only taking the first party insurance, which I call Comprehensive Insurance, if there is any damage, then, the total expense will be claimed by 50%. 50% will have to be paid from my pocket. But, with that, with the first party, if I take zero depreciation add-on, then, the body above the body, that is, body to body, plastic, glass, tires, whatever is visible above, if there is any damage to that, then, I will get 100% claim. But, if we have to take the claim inside the car, then, what is the most important thing See, the lifeline of the car is the engine. The most expensive thing is the engine. So, we have to take that. And, when the car will get crowded the engine will definitely go. The chances are high. So, the engine protection cover. In that case, if I take the engine protection cover, and in the future, the engine is damaged, seized, or anything, then I will get 100% claim. Similarly, there is one thing, consumables. You have to take this while buying a police car. Why? What is the meaning of consumables? Like, nut bolts, grease, oil, when the car is punctured, say, the nut bolts came off, grease came off, oil came off. So, the things that the car is consuming, understand the point. So, this thing also has to be taken separately. If there is an accident in the future, whatever damage will be done to these things, then, these will also be covered. Okay? Then, there is a key and lock replacement. Suppose, the car's key is lost, or damaged, then in that case, you can leave it. There is one thing, invoice price cover, which is also called RTI, Return to Invoice. It is like, suppose, the car is worth 10 lakhs, we bought it today. Today, the car is 4 years old. Now, the value of the car is 5 lakhs. Okay? Now, suppose, the car is stolen, and if I have taken this cover, Return to Invoice, that is, invoice price cover, then in that case, I will get 10 lakhs, if the car is stolen. If I have not taken this, then I will get 5 lakhs, if the car is stolen. That's it. Now, it is up to you, whether you want to take it or not. Then, tire protector, this comes separately. I will say, don't take it, if the tire is damaged, at the time of the accident, etc. So, leave it, no need to take it. Loss of Personal Belongings, if some items from the car are stolen, if there is an accident, then you will get it. It is a big headache, let it be. Daily Allowance, that is, if the car has met with an accident, you have parked the car in the agency, it took a week, they will repair it after a week. So, during that time, if you have to go to the office, then you will get Uber vouchers for 200-250 rupees daily. This is the thing, leave it, no need to take it. What are the main things? First, first party insurance, third party insurance, this has to be taken. With that, zero depreciation has to be added, no work will work in this. Apart from that, roadside assistance, take it, no problem. Consumables, have to be taken. Engine protection cover, have to be taken. Because, engine protection cover is the main point, you have to take it. Apart from that, you can also take return to invoice, it is very useful when the car is stolen. Even if it is an old car, you get the full invoice value. So, you can take this too. So, these things have to be taken. Now, come to this. I will tell you a live, okay? We will see all these things. I have explained this to you too. Okay? Now, after this, the main thing we will understand, one more thing, when we, let's say, go to buy a new car, there is a new car in the agency, a brand new car, okay? I am taking the insurance of that for the first time. So, I don't have the number of the car. So, many people get confused that how will I purchase the insurance? What will I put the number of the car? Let's say, it is an old car, I will put it online, this is the car number, it will pick up everything from itself, that it is so old, this is the model, this is that. But, when I am buying a new car, then how will I do it? See, the first thing, wherever you go, it will come like this, if you want to renew, then it will say, put the car number here and click on view prices. If it is a brand new car, then what to do here, one option is coming, brand new car, click here, then it will fill the whole detail. After that, what will it say on the last page? Put the engine number of the car and put the chassis number. That's it. After that, that insurance comes to you. Okay? So, it is very simple. But, money is saved a lot. When you renew, even if you do it yourself, even then, a lot of money is saved. Even, the links of 3-4 good companies, like Echo, HDFC, I will give them in the description box. It is very easy. A lot of money is saved. And, it is a matter of 2 minutes. I have explained everything to you. Now, I will tell you another live example. See, this is my car. It is a brand new car. Now, I am on my car. Leave the new car, this is an old car. My insurance was over. I will show you everything. With live proof, I make every video with a screenshot so that, people can easily understand. See, what is written here? The car number is written. I will have to blur this. The reason is, YouTube Police is here. The car number is written. And, here it is written, Hyundai Venue car. And, what is written here? IDV, 5 lakh rupees. How much I am declaring the value of my car, I am declaring 5 lakh rupees. Apart from this, this is a 2021 model car. And, the other thing, now, what are the things I have added in this? This is a quotation which I have taken from a shopkeeper outside. It is a little far from here. But, I called him and asked him to send me a quotation. He sent it. What did he add? First, he added a personal accident cover for the driver. This is for 675 rupees. If something happens to the driver, he will get 15 lakh rupees. Okay. Apart from this, he added roadside assistance. Okay. Apart from this, he added zero depreciation. Okay. Very good. He added engine protection cover. Very good. He added consumables. Very good. And, he took zero depreciation. So, obviously, this is a first party insurance. Okay. How much did he make and send it to me? He made it for around 18,000 something. See, it is written below. Okay. It is clear. For 18,000 rupees. And, what is the ID? 5 lakh rupees. All these things are in front of you. When I saw this, obviously, I knew that he will do it in 2 minutes. Otherwise, I will have to open the laptop. I sent it to him. But, when it didn't come to me, I understood that he charged a very high price. Then, I opened the laptop myself. This is the screenshot that my policy is currently running. I did it myself. So, this is the screenshot. When I did the policy, see here, it is the same thing. Which car is it? Venue. Which model is it? 2021. It is the same thing. Okay. Where is the car number? It is written here. I will have to put it here. Okay. What is the ID? 5 lakh rupees. It is the same thing. All these things are there. Okay. What all things did I take in this? One second. See, everything is written here. I took the engine protection cover, which is mandatory. Okay. Apart from that, I took consumables. Yes, it is written here. Okay. Apart from that, I took the nil depreciation, that is, zero depreciation. Yes, it is written here. Apart from that, I did not take the key protector roadside assistance. Okay. The reason is that you can take it. By the way, I did not take it because there are a lot of agencies around, you can call anyone. But yes, they charge 7,000 to 8,000 rupees. So, if you want to take it, you can take it. I will consider it my mistake. Okay. All these things are there. And one thing is that I did not take RTI or Return to Invoice. Okay. Neither did I take nor did they add it. Look, you will not see RTI anywhere here. Okay. After that, all these things happened. And the policy that I took all by myself, how much did I pay for it? 11,238 rupees. How much were they paying? 18,000 something. That is, unnecessarily, for just 10 minutes of work, I would have given them 7,000 rupees extra. You understand the thing. Okay. One more thing is there. They just added two things. I mean, what was the same thing between them and me? Both had a comprehensive policy. That is, it was a first-party insurance. There is a third-party cover. Nil depreciation, that is, zero depreciation, both covered it. Both added engine protection cover. Both added consumables. What did they add? Okay, RTI was not added from both sides. That is, Return to Invoice was not added from both sides. What extra did they add? Roadside assistance. This was only 699 rupees. Everything is written in the back. You can see it. And one personal accident cover was added. This is 675 rupees. That is, almost, this is 700, and this is 6700. And 61300. I mean, assume 14-1500 rupees. Understand the thing. But there is a difference of 7000 rupees. Even then, they were giving me 5500 rupees for no reason. So, when we can do all these things by ourselves, within 5 minutes, so, what logic is there that I should go and, you understand the thing, it is so easy. See, I will show you one thing, I will show you one more page. Assume that the page is opened. You can pick up any platform page. It will come like this. Here you have to put your car. For example, I have put a brand new car. Assume that I have to renew Here, you will also select the ID that how much value you are declaring for your car. Then, this no claim bonus will come. I will tell you a little bit about it. Then, you keep adding below what you have to add and what not to add. Here, if you have gone directly to HDFC, then you will get the quotation of HDFC. Click here. Pay. Insurance has come. It is so simple. Why do we go to shopkeepers? If there is still confusion, then understand it once or twice. By yourself, by sitting with someone, easily. The rest is so easy. I have told you everything. Once your fear is released, then you pay useless money for scooty insurance, bike insurance, car insurance, all these things. One more thing. If my car, I told you, the car came out of the showroom and I am getting the first insurance. If it is a car worth 1 lakh, then think, 5% of its value is broken. I am talking about the ex-showroom price. The first thing is there is insurance on the ex-showroom price. Assume that the car is worth 10 lakhs, ex-showroom price. Insurance is applied on it. Assume that it is worth 50,000. 50,000 RTO is applied. So the car came home for 11 lakhs. But the insurance will be on the ex-showroom price. The first insurance 5% of the money is broken. Break 50,000. That means the first insurance will be 9,50,000. If your car is from 6 months to 1 year old, then the value of the ex-showroom price of your car is reduced by 15%. That is its value in today's date. If your car is from 1 year to 2 years old, then in that case the value of your car is reduced by 20%. If it is from 2 years to 3 years old, then the value of the car is reduced by 30%. If it is from 3 years to 4 years old, then the value of the car is reduced by 40%. Similarly, if it is from 4 years to 5 years old, then the value of your car is reduced by 50%. In this way, you can calculate the ID of your car. If your car is from 5 years old, then you can keep any value below 50%. For example, we bought a car worth 10 lakhs. Now my car is 7 years old. Even today, I say that my car's value is 4.5 lakhs. There is no problem in that. Then it is your choice as to what value you want to keep. So these were all things. I hope you found this video informative. If you found this video at all informative, then please like the video and subscribe to the channel. See you in the next video. For now, this is the end of the video. Thanks for listening and thank you all.