As a car owner in India, you must be aware of the mandatory requirement to purchase car insurance along with registration and PUC. While the Motor Vehicles Act makes it compulsory, it is essential to have at least third-party insurance cover. However, third-party liability plans have limited insurance coverage. Here, only those legal liabilities that are payable to a third person are paid. It can be as a result of an accidental injury or damage to their property. However, no protection is available for the damage that your car sustains in this process. Thus, most insurance experts recommend buying a comprehensive car insurance policy.
The scope of a comprehensive plan is significantly wider in comparison to a third-party cover. In addition, the policy not only provides coverage for accidents, but also other damage to your car that can be due to natural calamities like earthquakes, thunderstorms, floods, etc., or even man-made events like riots, vandalism, and more. Not just that, comprehensive car insurance plans provide compensation even for the theft of your vehicle, thereby providing 360-degree coverage for all types of possible damage to your car.
Among the myriad car insurance policies, it can often be confusing to know how to select the right comprehensive insurance plan. This article mentions different tips to get the best car insurance for you.
- Exposure to risk
When buying a comprehensive car insurance plan, make sure to keep in mind the risks that are present while driving. For instance, you frequently go on long trips that have unexpected road and environmental conditions. This has a higher risk in comparison to a vehicle that is driven for the majority of the time within city limits. Thus, you must remember this factor when buying a car insurance policy.
- Declared Value Insurance
Insured Declared Value, or IDV, is the maximum compensation that an insurer pays in the event of a total loss of your car. When buying a comprehensive insurance plan, it is critical to set the right IDV since it is the maximum compensation that an insurance company will pay. Undermining the IDV might help lower the premium but may end up increasing the financial loss. *
- Add-on covers
Add-ons in a comprehensive cover are optional policy features that are available at an extra price. While they help to overcome any limitations like depreciation in your standard comprehensive policy, they also impact the car insurance prices. However, its benefits far outweigh its costs, so it must be purchased with your needs in mind. For instance, if you reside in a flood-prone region, buying an engine protection cover for your car helps to tackle damage due to water ingression.
All car insurance policies have a mandatory deductible included in their policy terms that requires the policyholder to pay a nominal amount with each claim, only after which the insurer pays for the balance amount of damages. But you can opt for a voluntary deductible in addition to the compulsory deductible. This has the effect of further lowering the insurance premium. To estimate the impact of voluntary deductibles on your premiums, you can make use of a nifty tool called a car insurance calculator. *
* Standard terms and conditions apply.
With these handy tips, you can avail of a comprehensive car insurance policy while making an informed choice. Insurance is the subject matter of the solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read the sales brochure/policy wording carefully before concluding a sale.