Car insurance is among the few things that need to be purchased when purchasing a car. It can either be a used car or a brand new one; irrespective of that, car insurance is a must. With a plethora of choices, it becomes cumbersome in selecting the right insurance policy.
Here are a few must-knows when shortlisting a car insurance plan –
1 Exposure to risk
The exposure to different risks is the primary factor in determining insurance coverage. If you are someone who uses their car for city commutes, the risks are lower. On the contrary, long trips through different terrains are riskier for your vehicle. At such times, you should consider availing comprehensive car insurance. Identify the risks that your vehicle is exposed to and select the appropriate converge.
2 Add-ons
Add-ons are optional features to your car insurance policy. These add-ons are only available when you buy comprehensive plans and not when you purchase third party car insurance online. There are a wide range of add-ons that you can select. They help to increase the coverage of your existing insurance plan to include events and situations that might not be covered under a standard comprehensive policy.
For example, if you reside in a flood-prone area, purchasing an Engine Protector add-on can come handy to protect your engine against water damage. Also, a Roadside Assistance cover can help you reach safely in case you are stranded on the road. Other add-ons like the Zero Depreciation cover will help in getting the full value of spares as reimbursement without accounting for depreciation. A No Claim Bonus (NCB) protect add-on will provide the NCB benefits for up to two claims during the policy tenure. While these add-ons are available at a nominal premium, it is crucial to select appropriate add-ons to enhance the coverage.
3 Deductibles
The deductible is another essential factor to consider when selecting a car insurance policy. The deductible is the amount which you, the policyholder has to pay at the time of making a claim. This percentage of deductible is pre-decided at the beginning of the policy tenure. Deductibles are of two types – compulsory and voluntary deductible.
The compulsory component is for every policyholder, whereas using the voluntary component, you can influence your car insurance premium. A higher voluntary deductible means lower premiums. But be careful when selecting the deductible. It will impact the amount of reimbursement at the time of claim.
4 Insurer
Almost all insurance companies provide a more or less similar range of services. It is essential you look for an appropriate insurer when buying a policy. Going through the website of your preferred insurer will help you understand the various plans on offer. Moreover, you can also look for the features and add-ons of your policy. Reading the testimonials and user reviews on various forums can help to get an idea about the ease of settlement process. Cross verification with the regulator, IRDAI, can help build a sense of confidence regarding the authenticity and genuineness of the insurance company.
Taking into consideration the factors mentioned above, it can be useful in selecting the perfect car insurance policy. Whether it is your first time purchase or car insurance renewal online, all of it can be done from the convenience of your home. Select smart and stay insured.
