In India, under the Motor Vehicles Act of 1988, it is mandatory that every vehicle driven on the road is insured. This car insurance falls under the third-party car insurance and the hull insurance. While third-party auto insurance is required by law, buying a comprehensive policy is only to your liking.
What should you pay attention to before taking out car insurance?
It is rightly said, “Never make trouble until trouble bothers you.” But why worry when you can simply analyze your own needs and choose the right coverage for your car?
1. Analyze your coverage
Understand and analyze your coverage. Make sure you cover your car sufficiently. We do not advise you to be insufficiently insured, but paying high premiums also makes no sense. For example, third-party car insurance is required by law. If your car is involved in an accident, coverage is only guaranteed to the third party in the event of personal injury, permanent disability and accidental death. What will happen to your car now? Your assets could then be at risk if it were a major accident. That is why it is now wise to go for comprehensive insurance to avoid the large repair costs.
2. Go shopping
With the variety of insurance companies available, you can narrow your search by selecting the appropriate insurance policy according to your requirements. Some online insurance portals such as Coverfox.com give a good comparison of different insurers based on premium, cashless garages, claims settlement ratio etc. By comparing the car insurance policies you save a lot of money as it involves less paperwork. You also get a wider range of products. So compare car insurance and give a thump for your wise decision.
3. Pay extra, go for add-ons
If you own a car, insuring it is the first step. However, protecting it wisely by choosing suitable add-ons becomes like icing on the cake. Insurance companies offer various add-ons such as bumper to bumper, paid driver coverage, engine protector, roadside assistance and passenger coverage to name a few. In short, you pay a little extra to cover all your risks. But again, check which add-on best suits your car and then choose it.
4. Free viewing period
The free viewing period is a time frame set by the insurance companies during which you can decide whether you want to continue the policy or not. If you are not satisfied with the policy terms or with the insurer’s services, you may cancel the policy and request a full refund.
5. Ask for discounts
Why be shy about asking for discounts when it can really help you save some money? You can earn good discounts as a good driver! The most expensive parts of the car such as the gear lock, safety equipment, airbags, etc. can benefit the insurer as it reduces costs, thus rewarding you for your safe and responsible driving.
6. Keep an eye on the insured declared value
Always consider the value of the car before taking out insurance. Insured declared value or the IDV is the factor that determines the premium of the car. Always make sure that the premium charged is correct, because lower the IDV, lower would be the premium. In the event of total damage, make sure that your IDV is in order. If it happens to be incorrect, then you would have to pay a huge amount of your savings. Therefore, always state the correct value of the car.
So avoid the commotion and choose the right cover. We hope this article was helpful for you to keep the smallest details in mind before purchasing car insurance for your prized possession.