All you need to know about Insurance
Now that you know, that insurance must be taken from outside and not at the dealership , read-on to know how best you can take insurance.
The bare minimum needed is bumper to bumper, zero depreciation & consumables cover. This will take care of any body work, accident damage & other small scratches and dents. Now let's see the various terms about Insurance. However, if money is not a problem & you prefer peace of mind over money, please opt for all of the below covers. Do note that this is only a placeholder and brief information on various covers available. Although, we make every effort to update this article, there are so many covers that insurance companies launch everyday. Do check for all their additional covers before your buy any. We recommend taking all of the below covers for total peace of mind.
IDV: Refers to Insurers Declared Value. This is the amount they will pay, if your vehicle is damaged beyond repair. Always opt for the highest IDV, even though premium will increase, as it saves you money, if you car is totalled.
RTI: Refers to "Return to Invoice" . If your car is totalled in a crash, this cover will help you get the entire money including road tax & registration charges. Very useful to buy a new car, if the current car is totalled.
Consumables cover: This will cover consumables like gloves, apron, grease, oil, lubrication and other similar items, which is not covered in normal insurance.
NCB: Refers to No Claim Bonus. You premium will reduce by minimum 20%, if you haven't made any claims in the previous year. This will reduce your premium payable substantially. If you are exchanging another car for a new Nexon, you can transfer the NCB from the old car to the new car.
Third Party Insurance: This is the money that the insurance will pay the third party. If you hit another vehicle, person or an object (lamp post / house / shop) The insurance will pay his damages. This is mandatory.
Cashless Settlement: Refers to the process of the insurance company directly settling the bill to the workshop, without you having to first settle the bill and then claim it from the company. Most of the private insurance have cashless facilities at all workshops across all manufacturers.
Engine Damage cover: This covers damage to engine and its components.
Hydrostatic lock cover: If water enters the engine due to natural rain & flooding or the user drives the car in a lake or river, the engine will seize and water fill the entire piston and cylinder cavity, rendering the vehicle immobile. This kind of damage isn't covered in insurance and this cover will help you overcome such situations like Chennai floods of 2015, Hyderabad floods of 2020 etc.
Key cover: If you lose the smart key of the Nexon XZ+, it costs you 8000/- to replace. Key cover will cover this amount, even if mistake is on your side. DO note, an Innova key costs 21,000/- & some Big 3 Germans' key costs close to 50,000/- to replace
Accessories cover: This will cover the cost of accessories installed & this amount will be returned, in the case of total loss. This is just for peace of mind & not really a necessity.
Personal belongings loss cover: This will cover loss & theft of belongings from the car., however the process is cumbersome and involves FIR & other police formalities.
Taxi cover: If you car is stuck on the highway & it cannot be repaired by the road-side assistance team, you are your family can claim taxi reimbursement to reach the nearest town or city.
Hotel Cover: This cover will reimburse hotel expenses if your trip id interrupted due to a faulty vehicle. However, do note, there have been cases that they will reimburse the cheapest accommodation and that would be in the category of a typical lodge.
Tire cover: Damages to the tire are covered and could be reimbursed by the insurer.
Glass cover: This covers damages to all glass in the car.
Nil depreciation: Usually plastic and rubber have a 50% depreciation and the remaining money has to be paid by you. This cover will help you overcome the above cost and the insurer will cover 100% of the plastic & rubbers parts.
RSA: Road Side Assistance is a must and highly highly recommended. It is never a wrong decision to have dual RSA. Your manufacturer might also offer you free 2/3/4 year RSA but it is a good practice to have an additional RSA from your insurance provider too. The premium may increase by 1000/-but it buys peace of mind. If you are stuck in a remote place, the manufacturer's RSA might quote say 3 hrs to reach your spot, but your insurance provider's RSA may come in 30 mins.
Wrong Fuelling Cover: If one inadvertently fills in diesel in a petrol car or petrol in a diesel car, the while fuelling system needs a through clean / change. Normal insurance will not cover this. Wrong fuelling cover will help you get your car back on its feet without pinching your pocket.
NCB Protection cover: If you make a claim, as mentioned above, you will lose the NCB. This cover will protect your NCB and most insurers offer upto two claims per year, without losing your NCB.