Get Private Car Insurance Today

You should get an insurance cover for your car the moment you purchase it since it’s at its highest market value and the depreciation costs are yet to set in. Get insurance provides private cars insurance plans from all insurance companies in Pakistan. These companies have a depreciation rate included within their policies. 

Depreciation is applied when you make a claim for the replacement of parts including glass and plastic items. Since your car depreciates in value every year, the general rule of thumb is that the value/price of a part also reduces in price by a certain percentage every year. In case of a claim, the company applies that percentage to reach a value for reimbursement. Most companies have a depreciation chart they use to calculate the value of depreciation but here is a general illustration you can expect:

Year

1 – 3 months
4 – 6 months
7 – 12 months
13 – 24 months
25 – 36 months
37 – 48 months
49 – 60 months
61 – 72 months

Depreciation Rate

No Depreciation
5%
10%
20%
30%
40%
50%
60%

How is Your Insurance Cover Calculated?

An insurance cover is based on a number of factors.

vehicle mileage

Vehicle Mileage

The more miles your car covers the older it gets. A car’s market value is strongly linked to its mileage.

old car icon - age of vehicle

Age of the Vehicle

Your car’s market value also depends on its age. The older it gets the less the market value. For example, a 2020 or 2019 Suzuki Cultus VXL will outreach the 2014/2015 VXL model in price and value.

Car value - market value

Market Value

The sum assured or the guaranteed amount in the cover is based on your vehicle’s market value. The market value is the selling price of your vehicle.

Car Maintenance Score

Maintenance Score

The maintenance score is calculated based on how well maintained and in what shape your car is. Any damages to the interior or exterior can hurt your market value.

Chances of Theft

Chances of Theft

This is based on general probable statistics. Depending on your car’s model and other factors, the company calculates the car’s chances of theft. The higher the chances, the higher the insurance rate.

motor insurance

Other Probable Factors

Based on probability, men are more likely to suffer a vehicle loss or damage compared to women. Factors like these are also considered while establishing your insurance cover.

To get the right sum insured it is important to understand exactly what your vehicle’s market value is. Quote the wrong market value for your car and you’ll get underinsured. This means in case of an accident, theft or anything else you’re insured against, the company will only pay you a percentage of your total loss. An example: if you get insured for 70% of your total market value, you will only receive a compensation of 70%, incurring a loss of 30% even after the insurance claim is made and you’re reimbursed.

Benefits of Private Cars Insurance:

An insurance cover is based on a number of factors. Car mileage and age of the car, market value, the size of your vehicle, how well maintained it is and the likeability of theft. While other factors matter as well, for example, males are much more likely to get into accidents compared to females, the sum insured is calculated based on the market value. 

To get the right sum insured it is important to understand exactly what your market value is. If you don’t know the right market value of your car there are chances you’ll get underinsured. This means in case of an accident, theft or anything you’re insured against, the company will pay you only for a percentage of your total loss. For example, you get insured for 70% of your total market value, you will only receive a compensation of 70%, incurring a loss of 30% even after the insurance claim is made and you’re reimbursed. 

Types of Private Cars Insurance

Depending on your needs, you can opt for different types of motor insurance policies. The rates vary depending on your car’s model, what features your insurance offers and other factors.

Full Comprehensive Coverage

These policies insure your vehicle against every possible risk: accidents, theft, third party liabilities, third party claims, damage, fire, natural calamities, riots, and terrorism. They offer full reimbursement if you lose your car and take care of the financial legalities for you. Naturally, the premiums are also more expensive compared to other options. 

These policies often also come with riders that include the following:

Comprehensive Coverage

Accidental Death and Permanent Disability Coverage

Accidental Health coverage

If you die or are permanently disabled due to an accident involving the car,  the insurance company provides full, promised coverage to your family so they’re financially backed during these worse times. And, the company takes care of your premiums (in case of disability) so you’re not burdened by any financial responsibilities further. 

Some of these private cars insurance policies also give you the benefit of ensuring your whole family so in case a death/accident occurs involving the vehicle or otherwise, you get a promised sum assured to tie you over financially while you deal with your losses. 

Protection Against Damage, Theft, and Third-Party Liabilities

Private Cars insurance covers give you protection against theft, third party claims, and terrorism. This means if your car is stolen, snatched or annihilated due to terrorist activity, you’ll get a full reimbursement by the insurance company. What the policy doesn’t cover are natural calamities, fire, accidental damages or damages due to riots and strikes. The premium and insurance costs are far more affordable and a lot of people opt for this option since it gives them a basic, required cover.

Accidental health and death insurance coverage

Additional Information

COVERAGE FOR LOAN AMOUNTS: These insurance policies provide comprehensive coverage including covering your remaining loan amount to the leasing company in case of death of the lessee. 

ACCIDENT COVER FOR PASSENGERS: This is a widely popular cover provided by a few insurance companies that provide accidental injury or death benefits to guests while traveling in the insured motor vehicle. This is extremely beneficial to people in the hospitality, and car rental service business.