When you buy a new car, your car dealer makes sure that your car comes with a mandatory third-party insurance. This makes sure that in case of an accident, you are covered for any liability that arises due to third-party damages caused by your vehicle. So for the first year, your car is insured as per the mandate but what happens when it’s time to renew. How do you go about renewing your insurance? Well, this is a situation many car owners find themselves in. This may happen because either you are not sure about where to buy a car insurance policy from, or you are not aware of the important aspects of a policy. But there’s no need to worry about it, because we can help you with that. You must be already aware of the fact that a car insurance policy is important, so that in case you are in a difficult situation like, a road accident, your car repair expenses are covered.
An understanding of some of the key aspects of a car insurance policy will help you pick one that fits your requirements and budget. Below we have mentioned some pointers that you must consider before buying a car insurance policy.
1. Type of plan
You can either buy a third-party insurance plan or a comprehensive plan. Each of them caters to different needs. While a third-party insurance plan is lighter on the pockets, it offers minimal coverage as compared to a comprehensive plan. The third-party plan is however mandatory to purchase.At the end of the day, it is up to you to choose which policy would better fit your needs and then purchase the same.
2. Add-on covers
Add-ons as the name suggests are the additional covers that you can buy to enhance the coverage of your car insurance policy. Add-ons come at a minimal additional cost over and above your policy premium.
While it is not mandatory to purchase add-on covers for your car insurance policy, it is worth taking a look at the different ones on offer. By paying a small premium amount for add-ons, you can secure a much better and wider coverage for your car. Some of the most commonly purchased add-on covers include invoice protection cover, zero depreciation cover, NCB cover, and engine protection cover.
zero-depreciation cover for your own vehicle is a must-have, or if you reside in an area that is prone to waterlogging, anengine protection cover is a must.
3. Check the number of network garages around you
Before buying the policy, you must find out about the network garages of your insurer.
Make sure to check which insurer is tied up with your preferred garage and then buy the policy of that company. That would save you a lot of hassles.
4. Adequate IDV
The Insured Declared Value (IDV) of the car is perhaps the most important factor affecting your policy.
Also know about electronic signs systems.
Tip: Try not to compromise on your IDV in order to lower your car insurance premium.
A deductible is referred to as a minimum amount that a policyholder must pay during the claims. Insurance companies usually have a mandatory deductible and a voluntary deductible.
- Opting for a voluntary deductible at the time of policy issuance might be helpful to lower your premium but it can also reduce your claim amount. Thus, choose wisely.
- We hope that these aspects were informative to you and now you will find it easy to buy a car insurance policy and understand the terms mentioned under it. These factors will help you make a wise choice while the policy. To make it simpler, just download.
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