Every car owner in India must buy a four-wheeler insurance policy to safeguard their vehicle and themselves during unexpected mishaps. These insurance policies provide multiple benefits and coverage to the car owners, their vehicles, and even third parties. If you are purchasing a car insurance policy for the first time, you should have a clear idea about what to consider before proceeding.
Here’s more about it!
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Top 8 Things to Consider When Planning to Buy Car Insurance in India
- Third-Party Car Insurance is Mandatory
The Motor Vehicle Act of 1988 mandates that every vehicle owner in India buy a third-party car insurance policy. This policy covers the third-party liability caused by your vehicle to a third-party property, person, or vehicle. Thus, you can start with a third-party plan if you plan to buy a car insurance policy.
- Choose A Reliable Insurance Company
Before buying a car insurance policy, you should always research the insurance provider. Learn about the inclusions and exclusions of their policies, add-ons, and other offerings, check reviews, gather feedback from previous customers, etc. Another way to determine an insurer’s authenticity is to check its claim settlement ratio.
- Understand Your Requirements
An insurance provider will offer different policies with multiple coverage benefits, add-ons, etc. However, before choosing any policies, you should be clear about your needs. Don’t get tempted by additional coverage because it comes at a price, and you must pay a monthly premium. So, sort out your needs, plan your finances, and opt for an insurance policy accordingly.
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- Standalone Own Damage Car Insurance
You should also know about the standalone own damage car insurance policy while planning to get your car insured. This insurance policy only covers the losses and damage caused to the policyholders and their cars. It does not cover any third-party liabilities. Moreover, you can buy this insurance policy even if you already have an active insurance policy.
So, suppose you have purchased third-party insurance while purchasing a car and waiting for the renewal date to get a comprehensive policy. In that case, you can simply opt for your own damage policy without wasting time.
- Opt for a Comprehensive Policy
Though a third-party insurance policy is mandatory, it does not cover your losses. Thus, car owners should purchase a comprehensive insurance policy to protect their vehicle and themselves from the losses and damages caused during an accident. A comprehensive insurance policy also covers your vehicle for damages and losses caused by accidental fire, theft, etc. So, it offers peace of mind even during severe mishaps.
- Know the IDV (Insured Declared Value)
IDV is the maximum amount you can claim when the vehicle is stolen or lost. Thus, when choosing an insurance policy, you should check the Insured Declared Value your insurer offers. Your vehicle’s current market value determines the value of IDV; any overestimation or underestimation can affect the claim procedure. So, consult with your insurance provider or use online tools to determine the accurate IDV before buying a car insurance policy.
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- Check for Bumper-to-Bumper Coverage
Insurance companies provide add-on coverage and comprehensive car insurance policies to enhance the policyholder’s benefits. You can avail of additional coverage by paying an extra premium. However, not all add-ons are worthwhile, but some can be greatly advantageous for any car owner.
One such add-on is bumper-to-bumper car insurance coverage or zero depreciation. When you buy a zero-depreciation cover, you can get full reimbursement for damaged vehicle parts without any depreciation being charged. Thus, paying extra bucks can be profitable when you get full reimbursement for damaged vehicle parts.
- Online Insurance
Last but not least, you should check if you can purchase the car insurance policy online or if you need to visit the office. Buying an insurance policy online is convenient in many ways. It saves you travelling time, and there is no need to carry the documents. You can easily upload them. The best part is that you can purchase the policy at your earliest convenience in just a few clicks.
Car insurance policies protect your car from unforeseen damages and losses. So, it is essential to choose the right policy for maximum coverage. You should consider all these things before buying a car insurance policy.
