Car Insurance for Honda Cars

Why Insure Your Honda Car?

Other than the fact that it is illegal to drive a car in India without a basic, valid car insurance, getting one is just the smart thing to do because your car is at risk from the moment you take it out of the showroom. The basic insurance will only cover personal accident expenses and third party legal liability.

A comprehensive car insurance policy will ensure that your car will be financially protected from any loss or damage which may happen to it in the period of your ownership such as:

1. Natural Calamities: explosion, Fire, self-ignition, rockslide, hail storm, inundation, flood, lightning, earthquake, typhoon, hurricane, storm, tempest, cyclone, frost, landslide etc.
2. Man-Made Calamities: Burglary, terrorist activity, malicious act, theft, riot, strike, and accident by external means as well as any damage caused to your vehicle while in transit by road, rail, inland waterway, lift, elevator or air.
3. Roadside Assistance: If you are ever in a sticky situation with your car, a breakdown or flat tyre perhaps, you can use the service of roadside assistance to simply call and receive help from the nearest network garage.
4. Cash Less Settlement at All Network Garages: Has your car broken down in the middle of a highway? You don't have enough money to pay for the repair services? These are exactly the situations where you need this coverage. You will get cashless repairing service if it is done from any of the network garages.
5. Engine Protection Coverage: It covers damages or leakages caused to the engine of the car due to an accident. This coverage, however, is not available for all Honda cars.
6. Third Party Liability Coverage: This gives coverage in case of an accident or collision, where injury or death has occurred to another person or property and you are responsible for the situation.
7. Personal Accident Coverage (Driver and owner): This cover offers protection to life of the owner-driver of the insured car in the event of an accident.

Honda Assure Car Insurance

Honda Cars India Ltd. (HCIL) initiated 'Honda Assure' as an effort to improve the Honda customer's experience with their cars. This program ensures transparent, hassle-free transaction as well as a quick turnaround time on their insurance claims. HCIL has enabled an online central server which monitors the entire transaction and operations. Other benefits of the program include features like , instant policy issuance, seamless service, re-categorized parts, add-on covers, quality repairs at Honda dealer workshops and improved turnaround time. Most importantly, Honda Assure car insurance will ensure the best when it comes to quality because your satisfaction and peace of mind is what matters.

Insurance Partners For Honda Cars

The following are some of the insurance companies that offer car insurance for Honda cars:

1. National General Insurance Company
2. Bajaj Allianz General Insurance Company
3. Royal Sundaram General Insurance Company
4. Iffco Tokio General Insurance Company
5. Universal Sompo General Insurance Company (Regional Partner-West).

What You Need To Know Before Insuring Your Honda Car

There are two types of insurance covers available for your Honda car:

• Third-party liability insurance - This insurance cover provides protection from legal liability to third-party life and property in an accident. It does not offer coverage for the insured vehicle itself. Some insurance companies provide personal accident cover for the owner-driver of the insured car along with third-party liability coverage.
• Comprehensive car insurance - This insurance cover offers extensive coverage when compared to the liability-only insurance plan. The coverage under a comprehensive policy include:
  • Coverage for losses to the insured car due to accidents, natural calamities, man-made disasters, theft, etc.
  • Personal accident cover for the owner-driver.
  • Third-party liability cover.

The comprehensive policy, also referred to as a package policy, does not offer coverage for:

1. Normal wear and tear of the car
2. Consequential losses
3. Driving without a valid license
4. Driving while intoxicated with drugs/alcohol
5. Usage of the vehicle outside geographical limits
6. Using the vehicle for hire, racing, speed testing, etc.
7. Electrical/mechanical breakdowns
8. Nuclear wars

Zero Depreciation Car Insurance From Honda Assure

Honda Assure connects you with the most attractive car insurance policies from some of the leading insurance companies in India. If you have taken a comprehensive car insurance plan through Honda Assure, you can enhance the coverage offered by the policy by opting for add-on covers.

The zero depreciation add-on cover is one of the most purchased riders in car insurance. Cars and car parts undergo depreciation with time. If you are under the impression that your comprehensive car insurance policy offers complete coverage and eliminates out-of-pocket expenses, then you may be disheartened to know that several aspects of a claim are not included under the coverage of a comprehensive policy.

When a policyholder files a car insurance claim, the insurance company will use a complex formula to determine the actual amount payable. This formula takes into consideration the depreciation of car parts. This can result in the policyholder bearing a hefty fraction of the total claim amount. This is where the zero depreciation add-on cover will be of significance.

1. The zero depreciation car insurance is also referred to as nil depreciation cover or bumper-to-bumper policy.
2. Consider that your car is protected with the zero depreciation cover. If it is involved in an accident that damages the car, the insurance company will cover the entire cost of repair, barring the deductibles. You will not have to pay the depreciation element separately in this case.
3. If you only had the comprehensive car insurance protection for the vehicle, the claim payout will depend on the Insured Declared Value (IDV) of the car. This is essentially the current market value of the vehicle after deduction of depreciation.
4. In a nutshell, the standard package policy will provide you the claim amount after deducting depreciation and deductibles, whereas the policy with zero depreciation cover will provide you the entire claim amount (minus deductibles), regardless of the depreciation.

Is It Worth Buying Zero Depreciation Cover For Your Honda Car?

A car insurance plan with nil depreciation cover has definitive advantages over the standard package policy. But it comes with a price tag attached to it. The price of this rider comes up to almost 20% of the comprehensive car insurance plan. This implies that the premium you pay towards insuring your car will see a significant hike.

This may not go down well with customers who seek affordable insurance for their vehicles. However, the zero depreciation cover may attract car owners who do not have an issue in contributing an additional amount towards auto insurance for the peace of mind that it offers.

There is a general feeling that the nil depreciation cover may create reckless drivers. This is primarily due to the fact that car owners may file claims for every little scratch or dent, as they are not required to pay a significant amount at the time of a claim. So, insurance companies have set limits on the number of times you can claim under the zero depreciation cover. This is a measure to ensure that customers do not go overboard in filing claims.

The zero depreciation cover is only applicable to new cars, i.e., vehicles less than 3 years old. If you have an older car, it is not eligible for this benefit. Moreover, it may not be cost-effective to pay higher premiums for an older car.

So, if you have a brand new car, protecting it with zero depreciation cover is worthwhile. As mentioned above, if the extra premium you pay towards the rider does not pinch your budget too much, you can go ahead and buy it.

Honda Car Insurance Cost

The premium you pay towards your car insurance policy varies from car to car and owner to owner. Listed below are some of the most important factors that come into play when your car insurance company calculates the cost of insuring your car:

1. Demographics - This includes your age and gender, marital status, profession, and the area you reside in.
   1. Car owners in the age group of 18-25 years attract higher car insurance premiums, as they are considered to be risky drivers.
   2. If you stay in an urban locality where accidents are common or an area where thefts are rampant, you will have to pay a higher premium on your car insurance. Getting your car repaired also costs more in certain areas; so this is another deciding factor.
   3. Some insurance providers offer premium discounts to car owners of certain professions.
   4. Premium discounts are also offered to car owners who are part of automobile associations.
2. Car-related factors - The car you drive dictates the premium for its insurance.
   1. If the vehicle is installed with anti-theft devices, then you may receive a discount on its auto insurance premium.
   2. Cubic capacity of the engine is a deciding factor for the car insurance premium.
   3. Age of the car also plays an important role in determining the premium. New cars attract higher premiums than older models.
   4. If you have an attractive high-end car, it is more likely to grab the attention of anti-social elements. Hence, it is more prone to theft. So high-end cars are more costly to insure.
3. Driving habits of the car owner - In addition to the above, your driving habits play a crucial role in determining your car insurance premium. Some insurers may also refuse insurance for car owners who have a poor driving history.
   1. Most insurance companies consider your driving activity when they give you a quote. If you do not use your vehicle very often, then your chances of getting into an accident are lower. This results in lower insurance premiums.
   2. Also, if you park your car in a secure garage, it is less likely to be damaged by external means. This can lower your rate further.

Paying for your Honda motor insurance is a notable part of the cost of car ownership. So if you can get your auto insurance premium down, it will greatly benefit your budget. Many insurance providers offer discounts to customers who hold multiple insurance policies with the company. So, if you have a life insurance policy with an insurer, you should find out if the company offers car insurance as well. This way, you may be able to benefit from a loyalty discount when you purchase the car insurance policy.

Honda Car Insurance Premium Calculator

When looking to insure your Honda car, you can compare policies online at neutral financial websites. Here, you can also use an online Honda car insurance premium calculator tool that helps you determine the approximate cost of your auto insurance. This is a very important step, as it helps you understand the amount that you will be paying towards your policy. Hence, you can assess the impact that the premium payment will have on your budget.

The Honda car insurance premium calculator tool is easy to use and provides you a quote instantly. You have to update certain personal details, such as your age, profession, address, etc. You will also have to update certain details about the car. This includes the age of the car, the cubic capacity of its engine, the make and model of the vehicle, year of registration, etc.

The premium calculator tool is a very handy proposition, and it is available at the BankBazaar website, free of any extra charges.

Honda Car Insurance Renewal Online

Almost all car insurance companies enable customers to renew their Honda car insurance online. The online route of policy renewal is advantageous in many ways:

1. Discounts and offers - Some insurance companies offer special discounts to customers who renew insurance online. The insurance provider saves a considerable amount when it sells policies online, as processing and distribution costs are eliminated from the workflow. The insurer, in turn, passes on this benefit to the customer in the form of discounts.
2. Instant policy issuance - When renewing insurance online, the insurance company is able to issue the policy instantly. As long as there are no gaps in the insurance of the car, the insurer will not insist on a car surveyal.
3. Policy comparison - When you are looking to renew your policy online, you can compare insurance plans between providers and arrive at a policy that provides you adequate protection at an optimal cost. If you find a better offer elsewhere, you can also switch insurers at this time.
4. Easy and convenient - The online policy purchase process is quick and convenient. You can renew the policy at the comfort of your home, without any paperwork.
5. Highly secure - All insurance companies that offer the online policy purchase facility follow strict security norms to ensure that confidential information is not compromised. These companies follow global security standards, and you can be assured that your sensitive data is safe.
6. Online repository for policies - Online policies can be preserved and retrieved in a very convenient manner, as opposed to physical policy documentation. This also protects your valuable documents from natural calamities.
7. Automated servicing - The online platform is not only limited to the sale of the policy. It is a very efficient channel for servicing, i.e., payment of premiums online, tracking your insurance investments, raising online claims, etc. This also presents a mode in which you can be self-sufficient without having to depend on an insurance agent. Additionally, the entire process saves you a lot of time in the long run.

In order to renew your Honda car insurance online, login to the Honda Assure website and click on the menu option for policy renewal.

1. In the renewal form you will be required to update some details about yourself, such as your age, address, profession, etc.
2. You will also have to update information about the car. This includes its engine capacity, age, place of registration, make and model, etc.
3. You can then make a payment through your credit/debit card or via netbanking.
4. Upon successful completion of payment, your car insurance policy will be renewed.

If you are renewing insurance directly through the website of the insurer, you will have to update a similar online form. The details required for insurance renewal will be similar to that mentioned above.

Honda Car Insurance Claim

In order to raise a claim under your Honda Motor Insurance, you should call the insurance company at the time of the event that led to the claim. It is advisable to intimate the insurer as soon as possible, because most insurance companies expect you to do so within 48 hours of the incident.

1. A representative from the insurance company will conduct a survey of the vehicle and have it moved to a network garage.
2. Your car will be repaired at the network garage in a quick and transparent manner.
3. For cashless claims, the payment will be settled directly between the insurer and the service centre. You will only have to pay a nominal amount that corresponds to deductibles and depreciation (if applicable).

Honda Car Models Available In India

The following tables provide you an overview of the Honda car models available in India and their costs:

GST Update: GST of 18% is applicable on car insurance effective from the 1st of July, 2017