If you have a car in India, you need to insure it. Doing so is a must. Even though the law mandates the purchase of just a third-party liability policy, it is advisable to choose a comprehensive plan for comprehensive coverage.
Accidents and other unfortunate events are unpredictable. However, their potential can be assessed. Insurance is provided only after confirming this possibility. Comprehensive car insurance policy includes a mandatory third-party liability policy and provides comprehensive insurance coverage.
Consider the following factors before purchasing a comprehensive car insurance policy.
· Exposure to risks
You should get insurance based on the risks you know. For example, a car being regularly driven to travel has a huge chance of getting into an accident compared to a car parked for a long time in the garage, accidents are more likely to occur if the car is often taken on dangerous roads or on long weekend drives. Identify the risks you are exposed to first, and then move on to appropriate coverage. Hence, you should look at the risks you would face on the road before buying four wheeler insurance. *
· Add-ons
Add-ons are not mandatory, they are optional, hence the name. By analyzing your risk exposure, you can choose the appropriate add-on cover. For example, if you live in a flood prone area, you may want to take advantage of the Engine Protection add-on cover. If you need help in the middle of the road, go for a Roadside Assistance cover.
With the Zero Depreciation add-on, your insurance provider will not deduct the depreciation of the vehicle when settling the claim. It is important to select the appropriate add-on before purchasing and know its coverage in detail. However, you should be wary while selecting add-ons as they charge an extra premium and can raise the car insurance prices for you. *
· Deductibles
When you buy car insurance, you will be introduced to this concept of deductibles. A deductible is a small share of the claim amount that the policyholder has to pay. The rest of the claim amount will be covered by the insurance company.
There are two types of car insurance deductibles, compulsory and voluntary. The compulsory deductible is pre-determined by the insurance provider. However, the voluntary deduction can be adjusted according to your desire. Moreover, you can choose not to opt for a voluntary deductible. If you do choose to pay a voluntary deductible in addition to the compulsory deductible, your premium amount will be reduced by a certain amount. However, be careful when raising a voluntary deduction. While it will lower your premium, it means that you would have to cover a larger share of the damages in the event of a claim. *
· Credibility of the insurance company
The credibility of the insurance company is very important when buying a policy. It is important that your insurance company is accessible and effective during difficult times. Claim-related processes should be stress-free. You do not want to be frustrated by the incompetence of the insurance company at the time of claim.
While switching insurance providers is always an option, it takes a lot of time and effort to complete the process. It is advisable to do some basic research on the reliability of the insurance company before purchasing a policy. Talking to friends and family and checking reviews online is a good way to verify the insurance company’s credibility. To make sure that they are charging you the right price for your coverage, get an idea of your premium using the car insurance calculator. *
* Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.
