July 23, 2021

4 Scams to Avoid When Applying Online for an RV Loan

Jun 25, 2021

If you are looking to apply for an RV loan online, you need to be extremely careful about which lender you choose. RV loan scams may not be the norm today, but they still happen and easily, so when you are dealing with someone you haven’t met before.

At first glance, it can be hard to tell the difference between a legitimate lender and a scammer from their offers. However, the following red flags should help you spot a loan scam more easily.

1.    The lender is pressuring you to sign an agreement

The end goal of a scammer is to defraud you of your money, so they usually will employ all sorts of gimmicks to pressure you into accepting their loan offer. The most common gimmicks include:

  • Branding their loan offers as “one-of-a-kind” deals that you won’t find elsewhere.
  • Offering you lower interest rates if you sign an agreement with them immediately.
  • Urging you to start sorting the paperwork when you haven’t discussed the loan terms and rates yet.

If you notice an online lender is bent on getting you to close a deal with them, you should always be on the lookout. Chances are that you might be walking into an RV scam.

2.    The lender doesn’t need your credit

The odds of your getting approved for an RV loan will largely depend on your credit score and credit history, which is why you should be wary of lenders who promise to approve your loan application without first reviewing your credit history.

Do not let having a poor credit score excite you into signing a deal with such lenders. Instead, search for legitimate lenders who will offer you the best loan rates you can get with your credit score.

3.    The lender requests sensitive, unnecessary information

If a lender ignores your credit history and asks for your personal or banking information instead, this is a major red flag.

Such information is usually irrelevant to the RV financing process, so regardless of whatever excuse a lender gives you, never make the mistake of providing them with any sensitive information about yourself, especially when it can be used to defraud you.

4.    The lender requests an unsecured payment form

Be especially wary of lenders who request unusual forms of payment, such as gift cards, for your loan transactions. Unlike most other payment channels, gift cards can’t be traced or refunded, which is what makes it a popular option among scammers.

If the lender you are shopping at offers you several payment channels, all of which don’t allow or guarantee refunds, avoid such lenders and seek others who offer more secure options.

Final words

Falling victim to an RV scam can take years to recover from. If you plan on applying for an RV loan online, ensure you do thorough research on the lender to ascertain if they or legitimate or fraudulent. With sufficient research and the tips above, you will easily avoid the deceptive RV scams online today.

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How to Reduce Home Loan Burden with an Annual Bonus?

May 26, 2021

If you have availed a home loan, you must keep up with regular EMI payments to avoid home loan default. However, at times, managing monthly expenses and paying home loan EMI can be financially straining. The situation could get even more critical if you are the sole earning member of the family. Thus, whenever an opportunity arises, you must try to reduce your home loan repayment burden. Ahead, we have elaborated on how you can make use of the annual bonus to save on your EMI outflow and make repayment easier.

Using an Annual Bonus for Making Part-Prepayment of Home Loan

Your annual bonus is no less than a blessing in case you are finding it difficult to pay home loan EMIs regularly. Therefore, use your annual bonus wisely rather than spending it impulsively on an exotic vacation or an expensive purchase.

Use your annual bonus for paying an extra EMI every year or making a part-payment of your home loan. This will help you close your debt sooner by reducing the loan tenure. By prepaying your home loan, you can also opt to reduce your monthly instalment. This will decrease the chances of home loan default. You can save on the interest pay-out by repaying your home loan sooner than the specified tenure. Also, timely repayment will boost your creditworthiness, thereby making you eligible for attractive loan offers in the future.

Before using your annual bonus for home loan prepayment, ensure to make a note of the prepayment charges levied by the lender.

Learn about home loan prepayment with the help of an example:

Suppose you have taken a home loan of Rs 50 lakhs at a rate of 8.5% for 20 years. By using a home loan EMI calculator, you can easily get an estimate of your monthly instalment, which would be Rs 43,391.

Now, consider that you utilize your annual bonus and surplus income to make a part-prepayment of Rs 2 lakhs. With the help of a home loan prepayment calculator, you can easily calculate your revised EMI. You must enter the details such as the loan amount, tenure, interest rate, and the prepayment amount in the calculator. For a part-prepayment of Rs 2 lakhs, your revised EMI will be Rs 41,656. This would mean a reduction of Rs 1735 or 4% EMI savings.

However, if you wish to close your home loan sooner, you can keep your EMI at Rs. 43,391 and reduce the loan tenure.

You must not default on your home loan under any circumstances. This is because a home loan is a secured loan, and thus, in case of a default, the lender reserves the right to seize your property to recover its losses. Therefore, make sure that your home loan EMIs are always affordable. The longer the loan tenure, the lower will be your home loan EMI. Whereas, for short-term home loans, EMIs will be comparatively higher. However, the good thing is that you will be able to bring down the overall cost of borrowing by opting for a short-term home loan.

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Ask the right questions before starting a monthly SIP

Apr 24, 2021

Systematic Investment Plan abbreviated as and commonly referred to as SIP is the easiest way to invest in mutual fund schemes. There isn’t a more organized investment option as for now and SIP ensures that you save and invest a fixed amount at regular intervals (typically every month) till your investment objective is achieved. Not everyone has a hefty corpus to start investing in mutual funds and SIP ensures that even if you have Rs. 500 to Rs. 1000 every month, you can still invest this amount and kickstart your investment journey without worrying too much. Thanks to the introduction of SIP, it has become possible for almost everyone to give themselves a chance of earning long term capital appreciation through systematic investing.

If you too are keen on starting your mutual fund investment journey via SIP, here are some of the questions you must be asking to ensure that you are taking an informed investment decision –

What is SIP?

Systematic Investment Plan is an investment tool where you choose an investment amount that you are comfortable with and invest this amount at regular intervals till your investment objective is achieved. There is no limit on number of SIPs and investors can start SIPs in end number of mutual fund schemes without any restrictions. SIP ensures that you save and invest a fixed amount before you start splurging in that particular month.

Are SIPs safe?

SIPs are not safe, but they ensure that you do not invest all your amount at once, thus saving your entire finances from getting exposed to market volatility. If you are investing in equity funds, these funds are constantly exposed to volatile markets. But when you start a monthly SIP, only the amount that you invest every month is exposed to equity market’s explosive nature. SIPs do not require investors to time the market and you can start investing in mutual funds via SIP right away.

Can I stop my SIP?

The performance of mutual fund schemes fluctuates from time to time. Sometimes if the sector or asset class in which a mutual fund scheme invests crashes, investors might be concerned about the scheme’s performance. In such a scenario, investors can immediately stop their SIP investments in that particular fund. In case you realize that you have invested in the wrong scheme or there is another mutual fund scheme in the same category that has a better track record, you can immediately stop your investments and switch to a better performing scheme. There are no fines applicable for abruptly stopping your monthly SIPs.

Can I modify the SIP sum?

Just like it is possible to stop your ongoing SIPs, investors can even modify the SIP sum depending on their income needs. Ideally year after year, it is recommended to increase your monthly SIP sum by 10 percent. Some individuals find themselves in a situation where their monthly income might fluctuate from time to time. Such individuals can increase or decrease their monthly SIP sum and they can invest this modified amount in the following again. Again, there are no charges for modifying the monthly SIP sum.

Does power of compounding work with SIP?

Power of compounding is an investment technique that seems to come into effect only when you continue investing in mutual funds via SIP for a minimum period of 7 to 10 years. Power of compounding is nothing, but the interest earned on the interest earned from the initial investment amount. To witness your small SIP sums snowball into a large corpus, investors are expected to continue investing in mutual funds via SIP keeping a long term investment horizon in mind.

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Things to bear in mind before investing in hybrid funds

Apr 24, 2021

Individuals who wish to invest a portion of their hard-earned money in investment schemes must first understand financial planning in the best possible way. Financial planning asks investors to determine their appetite for risk as well as prioritise their life’s urgent goals so that they are able to diversify assets accordingly. Every investment scheme has some risk associated with it. Even conservative schemes offering fixed interest rates cannot be deemed entirely risk free. If you are someone who is young with an aggressive investment approach and long-term investment horizon, such individuals can consider investing their hard-earned money in market linked schemes like hybrid funds.

Hybrid funds are gaining traction among retail investors because they have a slight upper hand over other equity schemes. While equity schemes predominantly invest in equity and equity related instruments, hybrid funds follow a unique asset allocations strategy where the fund manager builds portfolio by investing in both equity and debt instruments. Multi asset allocation strategy usually works because equity as an asset class is known to get affected by the fluctuations in the market. When the markets are volatile and this leads to the equity portfolio to underperform, investments in the debt can add the necessary cushion.

Things to consider before investing in hybrid funds

Hybrid schemes invest in different asset classes, thus aiming to provide the right amount of diversification for investors. However, here are some of the factors to bear in mind before investing in hybrid schemes –

Decide which hybrid scheme to invest in – The investment strategy of every hybrid scheme varies depending on its investment objective. If you carry a high risk appetite, then an aggressive hybrid scheme might be more apt as it invests more in equity and the rest in debt. Similarly, a conservative hybrid fund is more debt oriented and invests 15 to 20 percent in equity. Investors should choose a hybrid that suits their investment objective and shows growth potential to target their financial goals.

Capital gains tax – The equity component of hybrid funds is taxed like equity funds. Capital gains from the equity component of hybrid funds is eligible for short term capital gains tax of 15 percent and long term capital gain tax of 10 percent (for gains exceeding Rs. 1 lakh). The debt component of hybrid schemes is applicable for a short term capital gains tax is applicable as per your income slab. A long term capital gain tax of 20 percent is applicable after indexation benefit and 10 percent without indexation.

Risk appetite – Hybrid schemes invest in securities whose performance may fluctuate depending on the fluctuating market trends. Such investments are high risk and over the short term, you may even face losses. This is why investors should ideally determine their appetite for risk and evaluate whether investing in hybrid funds suits their income needs.

Investment horizon – Since these are equity oriented schemes, investors should understand that they need to have a minimum investment horizon of 7 to 10 years. Investing in hybrid schemes for the short run will not only shun their chance of earning capital gains, but they might even lose out of their investment amount. Hence, it is better to keep a long term investment horizon while investing in hybrid funds.

SIP or lump sum? – Investors need to determine whether they want to make a onetime investment or start a monthly SIP in hybrid funds. Systematic investment plan ensures that you save and invest a fixed amount at periodic intervals. Investors can also refer to SIP calculator, a free online tool which lets them determine the overall wealth (approximate) which they will accumulate through SIP investing.   

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How Tax deduction on FD is calculated

Apr 22, 2021

The interest that you earned on a fixed deposit is taxable and dependent on different income tax slabs of individual earning interest; this varies from person to person. The income tax slab rates lie between 0% and 30% and the tax levied on fixed deposits is influenced by the income earned by the taxpayer in that particular year. There are tax saving FD rates that can help minimize the burden on your finances. Here is how tax deduction on fixed deposits works:

Tax Deducted at Source (TDS) on Fixed Deposits:

The TDS associated with the interest on fixed deposits is deducted by banks at the rate of 10% if the amount paid or to be paid is over RS.10,000. The limit is set at that amount per branch of that bank, for each individual. Thus, the TDS is deducted by the branch only if the amount paid from one single branch as interest is over Rs.10,000, even if cumulatively, the individual may receive more overall interest from their various FDs.

When the time to pay the interest comes, the bank will deduct the tax from your interest earnings, prior to depositing the rest in your account.

In case, the TDS deducted is lesser than your tax liability, you must pay the amount that is left.  In the event that the deducted TDS is more than your tax liability then you can claim a refund.

If the interest owed by the bank is over Rs. 10,000 and the individual has not submitted their Permanent Account Number (PAN), TDS will be deducted at a rate of 20% as per section 206AA of the Income Tax Act. This step acts as an incentive for all individuals to submit their PAN details as most do not want to miss out on tax saving FD rates.

No TDS deduction on Fixed deposits:

In a case where an individual’s total tax liability is zero but TDS is still deducted by the bank due to the interest payout exceeding RS.10,000 from one branch, the individual is considered eligible for a refund. Forms 15H and 15G introduced by the Government eases the process of filing for a refund, and the declaration forms are valid for the duration of one year. Every year, a new form must be submitted for zero or low TDS deduction on the interest earned on fixed deposits.

Conclusion:

Along with TDS there are other forms of tax deduction on fixed deposits. For example, investors who are senior citizens can claim tax deduction on fixed deposits that have a lock-in period of five years according to section 80C of the Income Tax Act. Essentially, it’s important to assess all the available options with regards to fixed deposits and tax saver FD interest rates, as well as your own IT slabs while planning your finances, and you can do this with the help of FD tax calculator on the bank’s website. This is where Finserv MARKETS can come to your aid; a platform that is designed to attend to all your investment needs. Finserv MARKETS offers you a diverse range of financial solutions from the best providers in India, from which you can choose the fixed deposit that best suits your requirements and preferences.

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Why Choose Tax Accountants Over Accounting Software?

Apr 19, 2021

Tax accounting isn’t a child’s play and despite the existence of different useful and functional accounting software that are designed to assist people in helping them manage their accounts, the demand for Birmingham tax accountants is always on the higher side. The tax accountant business is here to stay, given how the software is made to do only a limited job. As for tax accounting, it is performed by the experts who no business, regardless of the size can defeat.

If you are still confused as to if hiring Birmingham accountants is worthwhile or not, then given below are a few of the most popular benefits that you can reap upon working with them.

Top Best Points That Show Tax Accountants Are Better Than Accounting Software

They Aid in Yearly Tax Planning and Possible Cost Estimates

A tax accountant is trained to assist you with the yearly tax planning followed by logical cost estimates. The only thing that you are required to do is dole out the necessary documents to your hired accountant so that they can take up the job and do it on your behalf. When you are new in the business or even being an experienced entrepreneur, other things require attention and time. Upon outsourcing the accounts-related job to the professionals, you can devote as much time as you want to your business.

They Take Care of Accuracy

The process of tax filing isn’t easy and involves several complexities. Being complex in nature means, it can cause you to commit errors. It doesn’t matter how insignificant the error is, you might end up paying penalties in thousands, might be charged with late fees, etc. The professional Birmingham accountants ensure the tax filing is done accurately and is always on time. Furthermore, the fees that the accountants charge from you are far lesser than the penalties you would be charged with, in case of errors.

They Do Tax Filing on Your Behalf

One of the most troublesome aspects of paying taxes is preparing them, and second, comes the filing of those taxes. While you might view it as something simple, filing tax papers isn’t easy but rather involves a lot of time, effort. From hours of panic to hasty scrambling; a lot goes into the process. However, Birmingham tax accountants would make sure that you do have to get involved in this troublesome process, by helping you to file taxes.

Additionally, the tax accountants help you to have clear access to modern software that isn’t only advanced but is designed to scan data and accurately organize the forms. The advantages of working with tax accountants are many including getting help in quickly achieving financial goals. Count on Birmingham accountants to help your business flourish.

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Inflation, Rising Costs – Why a 1 Crore Term Plan Might Not Be Enough?

Mar 27, 2021

If the income of the family’s sole breadwinner reduces by 1% it may not be a big problem. However, if it decreases by 10%, it can be a huge reason to worry. Here, the family will have to cut down on expenses to ensure financial stability.

Similarly, what if the earning member’s income reduced by 40%? In this case, the family members may have to compromise heavily on their comfort and lifestyle. Have you wondered how will your family cope with all the expenses if you are no longer around? Here, term insurance will come in handy to your family to maintain the standard of living of your dear ones. It can ensure that they live a financially-stress free life.

Many people randomly invest in a term plan with a sum assured of INR 1 crore. They feel that this amount will be sufficient for the family. However, with inflation and increasing costs, even an INR 1 crore term plan might not be enough.

Why an INR 1 core term plan might be inadequate

The core reason for this is the rising inflation rate. Additionally, your expenses are increasing every year due to your changing lifestyle. Ideally, you may invest in a term plan that offers a sum assured of at least 10 times your annual salary after considering all your assets and outstanding debts. However, you may tend to miss out on the inflation aspect over here, which can put your family’s economic security at risk during your absence. So, it is advisable to opt for a sum assured, which is 15 to 20 times your yearly income. Such a huge sum can help your family to cover the rising cost of inflation.

Let us take the example of Haresh. He is a 32-year-old individual who earns an annual salary of INR 15 lakh. He opts for a term plan worth INR 1 crore. He will retire at the age of 60. So, if anything unfortunate happens with him today, the sum assured needs to be enough to meet his family’s monetary needs for the next 28 years.  Following the thumb rule, Here, as per the thumb rule, Haresh should have selected a sum assured of at least INR 1.5 crore. However, even that amount is inadequate, as we have not considered the cost of inflation. If you calculate the rate of inflation at 8.5% per annum for 28 years, then Haresh needs to choose a sum assured of over INR 3.5 crore. Therefore, it is recommended to use a term insurance calculator to ascertain the sum assured before buying a policy.

Factors to consider while finalizing the sum assured

  1. Family’s future needs

In your absence, your family may have to go through struggles. Even though you have already purchased a term plan for them, problems may arise if the coverage is insufficient. You need to make sure if an INR 1 crore sum assured is enough for them and can fulfill their financial requirements. So, you need to note down your family’s current expenses, such as grocery bills, utility bills, medical costs, education expenses of a child, and EMIs on loans. Then, multiply the total that you get by 8.5% with the plan’s tenure, to get a proper projection of the family’s future expenditure.

  1. Inflation

Inflation will continue to affect your bank balance and sum assured value. If you feel that an INR 1 crore term plan will shield your family’s future, think again. Assume that your property’s value has increased almost 10 times in the last few years. Its price will rise again in the future due to inflation. This indicates that the prices of products and services will soar in the upcoming years.

Term Insurance is essential for your family’s monetary safety. However, this does not mean that an INR 1 crore term plan is worth it. Therefore, it should not be a benchmark figure. Calculate your sum assured carefully. Use an online calculator to ascertain the term insurance premium that you will have to pay throughout the tenure.

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Understanding Depreciation and Its Impact on Your Two-Wheeler Insurance

Mar 17, 2021

Once you have bought a two-wheeler, the first step after registering your vehicle is buying an insurance cover. There are several factors that impact your premium. Wil any factors influencing the premium at once, it might seem intimidating at first. But in fact, buying a 2 wheeler insurance policy is simple once you understand some key elements. One such critical element that impacts the premium is depreciation. So, if you are looking to sell your bike or buy a pre-owned one, these are some of the aspects that to know about depreciation.

For starters, let us understand: what is depreciation?

Depreciation for a layman is the decrease in the value of an asset over time. While riding a bike undergoes routine wear and tear of its components, it contributes to the reduction of its value. The Indian Motor Tariff has prescribed depreciation rates for different stages in the two-wheeler’s lifetime. This is denoted by the IDV. In simple terms, Insured declared value or IDV is the approximate value of your two-wheeler as determined by the insurance company. It is the maximum amount that your insurance company compensates during an accident or total loss.

Next, how does depreciation impact the premium?

The depreciation and the premium are inversely related. Since IDV is the maximum amount that your insurance company will pay, higher the IDV, higher will be your insurance premium. But as your IDV depreciates, it consequently reduces the amount of premium too. So, a higher depreciation of IDV implies lower insurance premium. This in turn has the effect of lower insurance claim payouts too. The table below explains how depreciation is calculated to arrive at the IDV for your two-wheeler:

 

Age of the vehicle Depreciation for the purpose of IDV
Not more than 6 months 5%
More 6 months but not more than 1 year 15%
More 1 year but not more than 2 years 20%
More 2 years but not more than 3 years 30%
More 3 years but not more than 4 years 40%
More 4 years but not more than 5 years 50%

Apart from above, the vehicle whose age is more than 5 years or models that are discontinued by the manufacturer, the IDV is determined mutually by the insurer and you, the policyholder.

Understanding the IDV better

You need to remember that IDV shall only be paid as compensation in the event your bike faces a total loss or is damaged beyond repair. In other cases, the compensation is restricted to the amount of cost of repairs reduced by the depreciation. Also, IDV is not calculated on the purchase price of the bike, but instead on its current market valuation. Often individuals compromise by selecting a lower IDV which results in a loss during compensation. Hence, it is recommended you do not skimp your IDV and declare the appropriate IDV only.

A two wheeler insurance premium calculator can help you to set the appropriate IDV for your bike depending on your insurance budget. Further, any add-ons can also be selected that enhance your policy coverage. Now that you know how depreciation impacts your premium, set the right IDV and enjoy adequate insurance coverage for your bike.

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What Are IRDAI Regulations for Pre-Existing Diseases in Health Insurance?

Mar 17, 2021

The importance of health insurance cannot be stressed enough, especially since the global pandemic has changed the normal ways of life. Now, health has become the prime concern. Moreover, health ailments can strike at most inopportune times. It can lead to a debt-trap if not planned well in advance. To have you mental as well as financial security, health insurance becomes a crucial part of your financial portfolio. But often a question pops up when buying one – what about already existing medical conditions? Are they covered by my health insurance plan?

A short answer to the above question is yes, the regulator, Insurance and Regulatory and Development Authority of India (IRDAI), has issues guidelines about pre-existing health ailments. Before you understand these guidelines, let us understand –

What is meant by pre-existing diseases?

Pre-existing ailments are medical conditions that the policyholder is suffering at the time if purchase of insurance cover. These diseases that already exist at the time of buying a health insurance policy either are included or specifically excluded from your policy coverage depending on the terms and conditions specified by your insurer.

Are premiums impacted due to pre-existing ailments?

Yes, any already existing health condition does impact the premium since it increases the risk for the insurance company. Further, these pre-existing ailments bring about a condition of waiting period wherein the insurance company includes that specific ailment in its scope after a specified duration. Until this specified duration, the insurer does not offer any coverage for the ailments that were existing at the time of purchase. In some cases, the insurance companies provide instant coverage too. But this comes with an additional loading to your premium. Even if it increases the premium, it offers the advantage of a health insurance cover to support the treatment costs. Remember that loading is only possible in case of pre-existing ailments. If any disease occurs after the policy is purchased and renewed without any break, it cannot be loaded for additional premium. Some instance of critical ailments come with premium loading along with a waiting period. At these times, opting for a dedicated critical illness insurance can be beneficial.

The regulators guidelines on pre-existing diseases

The earlier definition amended by IRDAI in September 2019 included a clause which stated ailments that are diagnosed within three months of purchasing the policy as pre-existing diseases. This amendment created ambiguity and let to disputes between the insurance companies and policyholders. As of February 2020, this definition of pre-existing diseases stands modified to delete that clause and now any condition that is diagnosed or treatment that is recommended 48 months prior to purchase of policy is classified as pre-existing ailment.

Whether you are buying an individual cover or health insurance plans for family, make sure to take a note of the clause specifying pre-existing ailments. Not only it will make the right selection, but also purchase a policy that fits your budget. To summarise, a pre-existing condition is the one that already existed at the time of buying the health insurance policy. The terms for coverage of pre-existing conditions vary among insurers, it is recommended you declare them to avoid any rejection of your claim application.

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6 Must-Have Features in Your Car Insurance Policy

Mar 12, 2021

“Car insurance is a must-have when you buy a car”. This fact needs no introduction, but most people miss on choosing the right insurance cover. While there are a bevy of insurance policies that you can select, it is crucial to pick the right set of features in your car insurance cover.  These features may be critical on how much you shall be compensated at time of claim. This article enlists six such features to not miss in your car insurance policy.

Let’s have a look:

#1 Cashless claim settlement: This feature in your car insurance policy allows you to get your claims settled without having to make any payment upfront. Here, the insurance company settles the claim on your behalf with the service garage. You only need to pay for the compulsory deductible portion of your policy. However, to avail a cashless claim settlement facility, you need to repair your car at a network garage.  A network garage is the one that is affiliated with your insurance company. Having a cashless facility benefits since you no longer need to settle the repair costs from you own pocket, followed by submitting all the invoices to your insurance company after which the claim is settled, subject to its approval. It saves your effort as well as values your precious time.

#2 24×7 Roadside assistance: Any snag during your journey due to car breakdown can leave you stranded for hours. To avoid this dreadful situation, staying prepared is necessary. But along with it, having a roadside assistance coverage helps. It offers towing services along with other forms of assistance to help you complete your journey without a hassle.

#3 Zero Depreciation cover: When you raise a claim for repairs, the insurance company accounts for the depreciation and pays the balance amount. Considering depreciation thereby reduces the claim pay-out. To avoid this reduced claim settlement, you can look for a policy offering zero depreciation cover. While some insurance companies have it bundled in their standard car insurance, others offer this as an add-on facility during purchase or car insurance renewal. 

#4 Lock key replacement cover: Losing your keys is a rare occurrence but can have dire consequences like being locked out of your car. Moreover, newer cars have electronic keys that make it further difficult to get into. A key replacement cover is helpful for you to get the replacement of your lost keys and saving you from financial hassles. 

#5 Engine protection cover: The engine is the heart of your car and any damage or breakdown is going to break your bank for its repairs. Supplementing your car insurance policy with an engine protection add-on will help you take care of these unexpected repair costs. Moreover, standard insurance plans do not cover the damages to the engine, and it is best to get it insured using this add-on.

#6 Personal accident cover: Accidents are unpredictable. Depending on the severity of the injury, it can lead to loss of income as well as depletion of your savings. Having a personal accident cover as a part of your car insurance policy helps to tackle events like disability and death with some financial support. This facility is available even when you purchase a third party car insurance online with the compulsory personal accident cover that is required by law.

These are six car insurance features to include in your insurance cover. So, if you are due for car insurance renewal or a first-time buyer, take a note and make a smart purchase.

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