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Motor Insurance FAQs


1. Why should I insure my Car or Bike

Its required by law to do so. Secondly, you get covered for all damages to your vehicle, or if it gets stolen.


2. Are there different types of Car Insurance

There is no difference in insurance coverage across companies, although prices do vary. Some companies offer Zero Depreciation covers, which are usually more expensive, and offer full coverage of parts and replacement. 


3. What are the factors one should look at while choosing the plan?

Motor Insurance is very simple. 

  • Always look at buying regular coverage or Zero Depreciation covers.
  • Look at car value to be insured. Most insurers use standard formulas – also called Insured Declared Value. This is the value for which your insurance is valid.
  • The actual Premiums vary from company to company – but the coverage is standard and exactly the same. So going for the cheaper option is always sensible
  • Some of our customers are particular about adequate Cashless Garages in their locality that each insurers have tie-ups with


4. So why if Premium offered is higher by one company, is it a better cover

  • No, all covers are standard and covers you for any damage or theft to your car and also any liability you or your car can cause (referred to as Third Party cover)
  • Then there are “Zero Depreciation” covers, which cover you for full value of repair – without deducting any depreciation. Remember, when you you got a claim last time, and found out that the insurance company deducted “depreciation” for your parts and made you pay for it. That wont happen when you buy a Zero Depreciation cover. However these covers are more expensive.


5. What are Zero Depreciation Plans?

Simple. In regular covers, when you claim insurance for any damage or repair, the insurance company would deduct some amount and make you pay for it. Wondered why. That’s what they call “Depreciation charges”
So, you had a claim of 20,000 rupees but the insurance company paid only 15000 to the garage and you had to pay the balance. The balance 5000 is called Depreciation charges. If you had taken a Zero Depreciation cover, the insurance company would have paid the entire amount of 20,000 rupees.


6. So should I take Regular cover or Zero Depreciation

If your car is less than 3 years old – take Zero Depreciation
Repair costs of luxury car models are very expensive, especially since you go to the authorised dealers usually. Go for Zero Depreciation covers
Otherwise, look at the difference in premiums and decide. Zero Depreciation covers are expensive, sometimes by even 50%


7. What is "No Claim Bonus"?

No Claim Bonus (NCB) is your bonus for driving or riding carefully and not making a claim. You get a discount on your premium. Starting from 20% going all the way to 50%. So be careful on the road. If any claim is made, however small, the no claim bonus is lost.


8. Will my No Claim Bonus get migrated if I want to change my insurance company?

Yes! Absolutely. Your No-Claim Bonus is freely transferable to another insurance company. When you renew your policy via RenewBuy, you have to do nothing, we simply get the no claim transferred instantly to the new company policy. 


9. Are there discounts that will lower my premium?

There are lots. You can get additional discounts under Own Damage Premium for membership of the Automobile Association of India, Vintage Cars (Pvt. Cars certified by the Vintage and Classic Car Club of India); Installation of ARAI approved anti-theft devices.And lots more. You must read you policy and make sure you get all.


10. Is Service Tax applicable and how much is it?

Yes, Service Tax is applicable and would be as per prevailing rule of law.


11. What is deductible?

Deductible or “excess” is the amount over and above, the claim payable. This ranges ranging from Rs 50 for two-wheelers to Rs 500 for Private Cars and Commercial Vehicles. Increase in the cubic capacity/carrying capacity of the vehicle increase this cost. In some cases the insurer may impose additional excess depending upon the age of the vehicle or if there is high frequency of claims.


12. Can I change details in the policy?

Changes like that of an address or modifications to the vehicle or its use, will be done by an Endorsement by the insurance company. All you need to do is submit a letter to the insurer with proof for the changes. Some endorsements may require you to pay additional premium.


13. Does the City of registration affect my premium?

If your vehicle is registered in Chennai, the rate applicable for Zone A is charged. Even when you shift to a different city / town, the same rate will continue to be applied. Similarly if a vehicle is registered in a town, it attracts Zone B premium rate. Subsequently if the owner shifts to a metro, he will continue to be charged the Zone B rate.


14. What is a Certificate of Insurance under Motor Vehicle Act?

As per Rule 141 of Central Motor Vehicle Rules 1989, a certificate of Insurance is to be issued only in Form 51. It is only in Motor Vehicle Insurance, apart from the policy, that a separate certificate of insurance is required to be issued by insurers. This document should always be carried in the vehicle. The policy should be preserved separately at home / office.


15. If I shift ot CNG or LPG what do I do?

Inform your insurer immediately. Any modification to your vehicle will make a difference to your policy. It could get cancelled. Make sure all modifications are updated in your policy.


16. What documents do I need to buy or renew my policy.

If you buy through, you need No Document..Yes thats true.

If you have a valid car insurance, simply fill details on, and your car insurance is done.

For Bike Insurance renewal, even if your Bike insurance has lapsed, you can fill in the simple form on the site and again get instantly covered. 

No more having to take photo copies of your registration certificate, Insurance policy etc. Welcome to the new way of renewing your vehicle - the RenewBuy way


17. Can I transfer my vehicle insurance?

Yes, the insurance can be transferred to the buyer of the vehicle, provided the seller informs in writing of such transfer to the insurance company. A fresh proposal form needs to be filled in. And there is a nominal fee charged. This needs to be done within 14 days of the change of ownership.


18. Can the insurance and vehicle ownership be in different names?

No. Registration and insurance of the vehicle should always be in the same name with the same address. Otherwise the claim is not payable. 


19. I have lost the insurance policy. Can I get a duplicate one?

Yes you can. When you buy through RenewBuy, you automatically get registered and your login id and password are sent by mail. Use this to access your policy anytime for a fresh printout.


20. What are the documents that are required to be submitted for a Motor Insurance claim?

Different companies have different requirements. Here are a few things you will need: Filled claim form, RC copy of the vehicle, Original estimate of loss, Original repair invoice and payment receipt. In case cashless facility is availed, only repair invoice would need to be submitted and FIR, if required. For theft claims, the keys are would also require non-traceable certificate to be submitted.

Ajay Oaksaved 51% on Toyota Fortuner "Apart from getting me a faboulous discount of over 50%, made the process so easy to renew my policy."       Rajesh Relansaved 50% on Mercedes E280 "Had an excellent customer experience with best quote as compared to other aggregator sites. I was delivered the policy well within the promised timeline."       Muralidhara Kadaba "Great experience. Quick. Easy. Hassle free."      Rajat Bahadursaved 50% on Volkswagen Vento "I had to renew the insurance for my wife's car on the last day of expiry. Even though it was a complex case of transfer from a lease company, team Renewbuy delivered a swift and seamless experience via their website and brought about savings of more than 50% on the premium from last year. The entire process took only 30 minutes from the comfort of my office!!"      Amit Sinhasaved 33% on Maruti Alto "Had an excellent customer experience with best quote as compared to other aggregator sites. I was delivered the policy well within the promised timeline."

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