When a person buys a new car, his happiness has no bounds. He has to buy a car insurance policy to safeguard his new bundle of joy from theft and damage due to loss or an accident. Besides, he/she would know the benefits and usability of the car insurance policy only at the time of claim. In case you forget or intentionally opt out of car insurance, the repair would cost you an arm and a leg. However, choosing car insurance can be a baffle so you have to be smart enough to get one. This read will help you with getting the best while shopping for a car insurance policy.
Below are the most important things one must mind while choosing a car insurance policy:
- Type of Car Insurance Coverage
Third party car insurance: It will cover against any legal liability caused to a third party due to your negligence.
Comprehensive car insurance coverage: A comprehensive policy is also known as the package policy, which not only covers your own damage but also any legal liability to a third party. This is the most sought after covers suggested by the industry specialists.
- Things that affect your car insurance premium
Most of the insurance policies might look similar on paper, but one must keep these factors in mind that affects the car insurance premium enormously.
- Car make, variants and model
Car make is the manufacturer whereas the model may have different variants and versions to it. Consider a Hyundai’s car model i10 with variants Magna and Sportz. The Sportz version is a level above Magna, thus making it expensive. This affects the premium as the cost of repair of an i10 Sportz version may prove expensive to the insurer than that of i10 Magna.
- Your car fuel type matters
The car fuel influences your car insurance premium. The premium differs depending upon the fuel type such as CNG/LPG, diesel and petrol. For instance, a car with CNG/LPG may have Rs.60 plus additional charges on the third party premium. But, for a comprehensive type of insurance, externally or internally fitted CNG kit is what matters.
- Car’s Cubic Capacity
In a comprehensive type of insurance policy, the own damage part is calculated on basis of the cubic capacity of your car. In that case, higher the cubic capacity higher is the insurance premium.
- Additional Covers are boon to car insurance policy
Want that extra dose of coverage for your car insurance policy? Then, opting for an add-on cover is a must. This stimulates your car insurance base policy which proves beneficial at the time of claims. They are not only recommended for luxury cars but also for economically affordable cars.
- Read all policy terms and conditions carefully
One should be aware of the car insurance policy terms and conditions before buying a policy. It is crucial to know the clauses related to claims or portability before you land in soup. Reading the policy terms and conditions will also give you a gist or make you familiar with the car insurance facts and abbreviations.
7 Things you didn’t know about car insurance
- Buy online
There are many reasons to buy a car insurance online. But the most captivating one would be getting oodles of discount on your buy. Most of the insurance companies will flash discounts; promotional offers etc. which makes your online car insurance shopping a delightful one.
- Comparing is essential
The benefits, plans, and features offered by different insurance companies might look similar and can make you scratch your head. Therefore comparing will make all the facts and figures clear under one roof, which successively gets you closer to finalize the options.
- Find insurers which offer cashless garages
This will keep you relaxed with the last moment hassle during claims. It can be quite tiring to juggle between garages which are miles away from your home. That is why having a cashless car garage near your home or work places are important. Most of the reputed car insurance providers have a good facility of network garages.
- Watch out for the IDV
When you plan to renew the car insurance policy, it is important to check the IDV offered by insurance companies. Because an insurer may quote a lower premium but at the same time the IDV may also be kept lower.
- NCB acts like a discount
No claim Bonus acts like a discount in the premium offered by the insurance company on every claim free year. If the vehicle owner has not made a single claim in the term of 5 years of the policy, he/she is eligible for a NCB of 50%.
- Opt for deductibles
The part of claim amount that is borne by you is called deductible. This means some part of the claim amount will be borne by you and some by the insurance company. Hence, those who are confident about their driving skills can opt for deductibles, which will lessen their car insurance premium
- Place all details correctly
Right from your vehicle to your personal details, it is important that you mention all the details correctly so as to protect yourself from any last moment hassle during claims.
What Everyone Must Know About Car Insurance
Car insurance is a very simple process if you happen to follow the above tips thoroughly. Besides that, one must also keep the below things in mind like…
- Don’t let the car insurance policy lapse.
- Avoid claiming for small damages.
- Keep your current insurer posted of any previous claims.
Thus, car insurance is not a rocket science but applies simple logic. The above tips on car insurance policy will help you buy a smart plan.