Important Terms to Remember to Make Full Use of Your Motor Insurance Cover

1. Important Terms to Remember to Make Full Use of Your Motor Insurance Cover Have you ever filed an insurance claim and have experienced great disappointed with the finds that were released by the insurance company as a reimbursement? Do you think that not having adequate knowledge about crucial terms used for insurance processes makes you suffer a lot while connecting with your insurance agent or professional assigned to your case? If yes, then this is the time to learn some of the important terms that can help you understand the motor insurance clauses in detail and can assist in completing all the formalities without any hassle. Read below to know about some of the common terms you must know to make full use of your vehicle insurance policy: 1.Insured Declared Value (IDV) Commonly stated as IDV by the insurance professionals, the term relates to defining the current market value of your vehicle. It can be determined as the highest sum payable that should be paid by the insurer to avail the motor insurance policy. In other words, it is the maximum insurance amount you can claim if you vehicle undergoes a serious accident,

2. damage, or any sort of loss that is beyond repair. Experts claim not to quote an IDV that is actually lower than the current market value of your car because it may allow you to pay lesser premiums, but it will make you bear huge loss in case of availing compensation during theft or irreparable damage. 2.Own Damage Premium (ODP) The ODP is defined as the premium you pay for availing the insurance cover equal to the IDV of the vehicle. The component determines the major section of your total car insurance premium. The factor helps you to insure your motor vehicle against losses and damages that are caused by events, which are beyond your control. The clause in this term includes both the factors, natural and man-made calamities, to ensure that you enjoy high-end protection against any sort of loss. 3.Zero Depreciation Cover In case of filing an auto insurance claim, most of the insurance policies deduct depreciation on your car’s replacement parts. Selecting the Zero Depreciation cover ensures that the insurance companies will waive off depreciation on replaced parts, resulting in helping you to get higher insurance claim amount. It is imperative to consider that this cover is applicable on a few claims, thus, selecting this option while doing your motor insurance may result in significant hike of insurance premiums. 4.No Claim Bonus (NCB) As the name suggests, the bonus or discount is offered when the insurer hasn’t made any claims on the insured vehicle during the past year. It is like a reward for careful use of your vehicle and may result in lowering the car insurance premium considerably while renewing it.

3. At last, your motor insurance cover may include personal accident cover or third party accidental covers to ensure that you and all the passengers have a basic medical protection. Explore the web for more related terms and make necessary customizations in your auto insurance policy by selecting smart features and benefits!