In India, as per the Motor Vehicles Act of 1988, it is compulsory that every vehicle being driven on the road be insured. This car insurance is classified as third-party car insurance and comprehensive car insurance. Though third-party car insurance is mandatory by law, buying a comprehensive policy is only as per one’s wish.
What to consider before buying a car insurance policy
It is rightly said, “Never trouble trouble till trouble troubles you”. However, why be troubled when you can easily analyze your own needs and choose the right cover for your car?
1. Analyze your coverage
Understand and analyze your coverage. Make sure you cover your car adequately. We are not advising you to be covered insufficiently, however paying huge premiums also does not really make sense. For Example, third-party car insurance is mandatory by law. If your car meets with an accident, coverage is guaranteed to the third party only in the event of bodily injuries, permanent disability, and accidental death. What happens to your car now? In this case your assets could be at risk if it had to be a major accident. Hence going for a comprehensive insurance would now make sense to avoid the major repair expenses.
2. Go Shopping
With the variety of Insurance companies available, you can narrow down your search of selecting the correct insurance policy as per your requirement. Some online insurance portals like Coverfox.com provide good comparison of different insurers on the basis of premium, cashless garages, claim settlement ratio etc. By comparing the car insurance policies you save a lot of money since this involves less paper work. You also get a wider range of products. So compare car insurance and give a thumps-up for your wise decision.
3. Pay extra, go for Add-ons
When you own a car, getting it insured is the first step. However, protecting it wisely by going for suitable add-ons becomes like a cherry on cake. Insurance companies provide different add-ons, such as bumper to bumper, paid driver cover, engine protector, roadside-assistance and passenger cover to name a few. In short, you pay a little extra to cover all your risks. However again, check what add-on best suits your car and then opt for one.
4. Free Look Period
Free look period is a time frame decided by the Insurance companies during which you can decide whether to continue the policy or not. If you are unhappy with the policy terms and conditions or with the services of the Insurer, you may go for policy cancellation and ask for full refund.
5. Ask for discounts
Why feel shy to ask for discounts, if it can actually help you save some bucks? You can earn good discounts for being a good driver! The most costly parts of the car like the gear lock, safety equipment’s, air bags etc. can actually benefit the insurer since it reduces the cost thereby giving you rewards for your safe and responsible driving.
6. Keep an eye on the Insured declared Value
Always keep in mind the value of the car before buying the Insurance policy. Insured declared value or the IDV is the factor that decides the premium of the car. Always make sure the premium charged is correct because lower the IDV, lower would be the premium. In the event of total damage, ensure that your IDV is right. If it happens to be incorrect, you would then have to shell out a huge amount from your savings. Hence always declare the correct value of the car.
So avoid the commotion and choose the right coverage. We hope this article was beneficial for you to keep in mind the minute details before buying car insurance for your prized possession.