Mumbai,
Maharashtra, India: Zurich
Kotak General Insurance, highlights the significance of car insurance in
determining the resale value of a car in India. When it comes to buying a car,
Indian consumers consider various factors, including the car's make and model,
fuel efficiency and resale value. However, one crucial aspect that is often
overlooked is the impact of car insurance on the resale value of a car.
The Indian automotive
market is one of the largest in the world, with millions of cars sold every
year. The demand for used cars is also increasing as the market continues to
grow. Let’s explore how car insurance plays a significant role in determining
the resale value of a car.
How car
insurance affects resale value?
Third-party car insurance is a mandatory requirement for all car owners in India as per the
Motor Vehicles Act, 1988. However, comprehensive car insurance provides
financial protection against damages or losses incurred due to accidents, theft
or natural disasters for own-damage and to the third-party. However, car
insurance can also impact the resale value of a car. Here are some ways in
which car insurance affects resale value:
If a car has been
involved in an accident or has suffered damage, the car insurance claim can
impact its resale value. A car with a history of insurance claims may be
perceived as a higher risk by potential buyers, which can reduce its resale
value.
The no-claim bonus
(NCB) is a discount offered by insurer to policyholders for a claim-free year
during the policy period. A car with a high NCB can command a higher resale
value, as it indicates that the car has been well-maintained and has not been
involved in any accidents.
The type of car
insurance coverage purchased can also impact the resale value of a car. A car
with comprehensive car insurance, includes coverage for damages or losses due
to accidents, theft or natural disasters, that may command a higher resale
value than a car with only third-party insurance coverage.
Tips for
car owners
Here are some tips to
keep in mind if you're planning to sell your car in the future:
Avoid making insurance
claims for minor damages or losses. Instead, pay for the repairs out of pocket
to maintain a clean insurance record.
Choose comprehensive
insurance coverage to ensure that your car is fully protected against damages
or losses.
Avoid making insurance
claims to build a high NCB, which can increase the resale value of your car.
When selling your car,
disclose all insurance information to potential buyers, including the insurance
premium, coverage and claims history.
The final
note
In conclusion, car
insurance plays a vital role in determining the resale value of a car in India.
Car owners can increase the resale value of their car by following these tips.
As the Indian automotive market continues to grow, it's important for car
owners to understand the impact of car insurance on resale value and take steps
to protect their car.
About
Zurich Kotak General Insurance Company (India) Limited (Formerly known as Kotak
Mahindra General Insurance Company Limited)
Zurich Kotak General
Insurance Company (India) Limited is a 70:30 joint venture between Zurich
Insurance Group and Kotak Mahindra Bank. The Company got its new name ‘’Zurich
Kotak General Insurance Company (India) Limited’’ in the month of August 2024,
following Zurich Insurance Group’s 70% acquisition in Kotak Mahindra General
Insurance Company Limited. It is the youngest and one of the fastest growing
non-life insurance franchises in India.
Kotak General Insurance
was established in 2015 to service the growing non-life insurance segment in
India. The company aims to cater to a wide range of customer segments &
geographies offering an array of non-life insurance products like Motor,
Health, Home etc. As a practice, the company seeks to provide a differentiated
value proposition through customized products and services leveraging state of
art technology and digital infrastructure.