Car Insurance Terms That You Must Know!

The payment you make to your car insurance provider in exchange for coverage is known as your premium.

Loading is an additional charge imposed on the base premium based on the risk assessment of the insurer. Loading percentages imposed by insurance companies typically range from 15% to 35%.

No Claim Discount (NCD)
No Claim Discount (NCD) is a reward programme for you if you do not make any claims on your insurance policy in a given year. NCD has a significant impact on the premium or amount you must pay to your insurer.

Betterment is a proportion of the cost of replacing a damaged vehicle part with a brand new original part.

Additional Coverages
Any coverage that is not included in your insurance policy’s ‘package’ is referred to as additional coverage or optional coverage. To enjoy what your insurance does not cover, you must pay an additional premium for additional coverage.

Excess is the first payment you must make when filing a claim on your insurance policy, even if you are not at fault.

Market Value
The market value of your car is determined by its current market price. Your car’s market value is typically determined by its brand, model, and year of manufacture

Agreed Value
The amount agreed upon by you and your insurance company at the time of insurance renewal is referred to as the agreed value. Despite the decrease in the market value of your vehicle, the agreed-upon price remains unchanged.