How To Choose A Right Insurance Policy For Your Car: All car owners need to choose the right insurance for their car. Do you have questions about what is the right insurance and how to choose? Here are some tips, that you must consider while choosing the right insurance policy for your car.
1. There are many ways to get insurance for a vehicle. Insurance policies are currently purchased by Petrol Bunk and Agents. When buying from agents, you will need to approach each company’s agent to learn about each company’s plan. This can be very time consuming.
In Petrol Bunks, They might be having two to three planes of different companies. But they may not be aware of the many insurances plans that exist within a company. You have to pay a commission of 10% or a certain amount when taking insurance from them.
But If you want to buy Insurance policy online, based on a few information like car’s maintenance, location, renewal date, age of the car, Insured’s Declared Value [IDV] and so on, We can decide the premium for our car. We can compare the policies of different companies and arrive at a conclusion to choose the best company that suits our needs. In online, there is no need to give any commission and you can get some offers from time to time.
2. Once you decide where to buy insurance for your car, you need to answer the question of what insurance to buy next. There are different types of car insurance policies available. Some of them are
Third-Party Insurance [TP]
Personal Accident Insurance [PA]
Under the Motor Vehicle Act, Vehicle owners are required to have a third party and personal accident insurance.
3. The Third Party Insurance is for the compensate for the loss caused by us to others. means this insurance covers you against legal liability for injury or death or property damage caused to any third party, who is not in the insurance contract in an accident.
In order to understand the concept of third party insurance better, let us look at some important terms used. For example, in the event of a car accident, the parties involved are as follows:
First party: The Policy holder [Insured Person]
Second party: The Insurance Company
Third party: The person who claims for the damages caused by the first party
4. Personal Accident Cover comes along with Third Party Insurance. If you have this, the insurance company will take care of your medical expenses in the event of an accident. In the event of death, up to Rs 15 lakh’s will be paid as compensation. You have to pay a premium of Rs 750 [plus taxes] per year to take this policy. There is no need to pay this fee for every car insurance.
5. Comprehensive Insurance is a form of insurance to cover the damage to the vehicle in the event of an accident and to compensate if the car is lost. The most important of these is the Bumper to Bumper / Zero Depreciation Policy. Many common policies do not cover rubber, nut-bolt, paint, brake pad, oil etc. But this bumper to bumper policy covers all kinds of damage to the car.
The premium amount for Zero Depreciation policies is higher than the normal Comprehensive Policy. First-time car buyers or someone learning car driving and commercial users are advised to take this policy.
6. When selecting car insurance, the first thing to look out for is IDV, the Insured Declared Value [IDV]. That is, the value of a vehicle. If the vehicle is lost or inaccessible due to the damages, the insurance company will pay this IDV amount.
If it is a new vehicle, it is better to buy IDV for the maximum amount. For older vehicles, we can choose the amount we want. As Insured Declared Value increases, so do the insurance premium.
7. Car owners who purchased the car by loan, will not sell the car until the loan is finished. So if your EMI for two years, it is better to buy a Zero Depreciation policy and a higher No Claim Bonus for two years. This will reduce the insurance premium.
8. When you buy car insurance, you can get an option called ‘Add-on’. Using this add-on option we may include some of the things we need in the policy we are going to take. Both Zero Depreciation and Personal Accident comes under these add-ons. If there is no need for zero depreciation, you can add a ‘Consumables Cover’ as an add-on.
9. Car owners living in heavy rainfall areas or areas with water stagnation should incorporate the Engine Protection Cover. If the water goes into the engine and the car is damaged, Owners cannot claim compensation under the normal policy. Therefore, the engine protection cover is essential.
10. The higher the no-claim bonus, the lower the premium for the car when you renew the policy. Occasional travelers are better off taking the 24×7 Roadside Assistance Cover. Most expensive car buyers can put an add-on called ‘Return to Invoice‘.
If the car is damaged, we get the total amount of the car. At the same time, selecting all add-ons is a waste of money. Select only necessary Add-on’s.
11. Choosing the policy correctly can lead to confusion about which company policy to buy. It is important to look at who provides the most coverage, how long the claim is available, and how many cashless service centers there are in our area. If there are no cashless service centers, you have to pay your own money to repair the car and later get the money back from the insurance company.
12. If Everything fits favorably; But if two companies offer different prices, it is better to take out the policy of the company which provides more claim. Each company’s claim coverage can be viewed at the Annual Report on the IRDA website.
13. If the old insurance is renewed before the end of the term, the premium will be lower. The premium is higher when buying a new policy.
Choose the right policy for your car by clearly analyzing and understanding the policy. Take advise from the experts.