Choosing the most suitable insurance for your car is very important.
Moreover, to make the right decision, it is essential to know the types of car insurance offered by various insurance companies and calculate the premium of your insurance policy through a car insurance calculator.
Once you know the types of car insurance, another important step is to compare car insurance to select the appropriate one and ensure timely car insurance renewal upon insurance expiry.
Types of Car Insurance
- Third-Party Car Insurance: This is a requirement as per law. If you ever meet with an accident, a third-party car insurance policy would cover the expenses incurred for damages caused to the other party involved in the accident. Damages to their vehicle or property or expenses incurred due to bodily injuries are covered. The other party will generally receive the necessary reimbursement for the damage, and you will have your back saved from a significant financial setback.
- Comprehensive Car Insurance: This insurance provides 360-degree protection that covers third-party insurance and safeguards your vehicle. It is the most extensive policy and is highly recommended.
- Stand-alone Own Damage Car Insurance Policy: This policy covers the damages and losses caused to your car due to accidents, collisions, and natural calamities.
Importance of Having the Right Car Insurance
- A right car insurance policy provides you with the optimum protection and serves as a financial cushion in the hours of crisis.
- An insurance plan helps cover the costs of repairs to your vehicle, medical expenses, and damages to other vehicles or property. Moreover, the pay-out option in the car insurance plan will enable the deceased’s family to be financially independent in managing their day-to-day expenses.
- Opting for the right insurance for your car also offers No Claim Bonus and cashless service benefits through network garages.
- Failure to have car insurance is a mandate and must not be prevented. If anyone is found to drive without insurance, that individual must be ready for legal action.
- You can also get the benefit of choosing add-on covers along with your car insurance policy.
- Lastly, it helps you protect your investments, as major repairs or vehicle replacements can burn a hole in your pocket.
Things to Understand While Buying Car Insurance in India
It is important to be aware of the primary risks that may come when you think of getting a car insurance policy.
- Assessing what you need is the key aspect to consider before purchasing a four-wheeler policy. For example, if you own a new luxury car, opting for a comprehensive policy with zero depreciation cover may be best suited. However, this may not be the case when you own an old car.
- Understanding the coverage and add-ons offered while purchasing car insurance in India is important because it protects you against financial losses. Basic car insurance policies safeguard you against damages primarily caused by accidents, thefts, and natural disasters.
They might be unable to provide coverage in specific situations, like roadside assistance. In this case, you can avoid unnecessary expenses by exploring the different coverages and add-ons in detail while you plan to purchase a four-wheeler insurance policy.
- When purchasing car insurance online, it is essential to understand the policy’s terms and conditions, claim process, and other important aspects.
- In insurance terms, cashless means you do not have to pay money upfront to settle claims.
- IDV or the insured declared value is the total amount the insurance company pays in situations of total loss or theft of your vehicle. Your car’s insurance premium is generally influenced by its Insured Declared Value (IDV). If you select a lower IDV for your car insurance policy, you will pay lower premiums, and vice versa.
- To buy car insurance online, compare plans based on features, coverage, premium charged, and other benefits from the insurer before purchasing.
- Voluntary deductibles can help reduce your premiums. In this, you proactively pay a certain percentage at the time of claim, and in return, the insurer reduces the premium.
Guidelines for Having a Cost-Effective Car Insurance
- Pay attention and drive carefully on the roads.
- Look around for better car insurance rates.
- Increase the amount of your deductibles.
- Review your coverage.
- Install various Anti-Theft devices
- Research for additional discounts.
- Avoid unnecessary add-ons
- Take advantage of multi-car discounts (Paying a single premium for all the cars you own and earning a discount). You can consider long-term car insurance to get cost-effective car insurance.
Conclusion
By now, you must know that choosing the right car insurance for your first vehicle is crucial for fulfilling the legal mandate and protecting your financial interests. However, choosing the right one may require adequate research, time and effort. Hence, it is important to compare and then get an online car insurance that suits your needs. It is always wise to read the policy terms before buying.
