VMPL
Mumbai (Maharashtra) [India], January 16: 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.
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