Buying a car insurance policy may often be regarded as a perplexing decision. With different features a policy has to offer, it can confuse. Thus, it is essential to do your homework and take note of the differences and only then finalize a policy. This article elaborates on some of the essential tips that can help you decide on a suitable car insurance cover. Let’s have a look:
1. Selecting the right type of insurance cover
Before buying car insurance online, the primary decision is to choose an insurance policy. Two types of car insurance plans are available: a third-party and a comprehensive cover. The selection of either approach must be based on the coverage you seek.
A third party car insurance plan, also known as a liability-only plan, protects against third-party legal liabilities. Being a bare minimum insurance policy required as per the Motor Vehicles Act, it protects against the damages in an accident inflicting injury to a third person or their property. But it isn’t only a third party that sustains damages during a collision or an accident. Your car also is impaired. Hence, you may opt for a comprehensive plan. This policy covers not only the third-party liabilities but also repairs that are required for your car. Further, a complete policy can also be customized in coverage. Based on this information, you need to decide which type of insurance policy you must opt for.
2. Comparison is the key
When choosing insurance plans, the next point to remember is comparing the available programs. From a plethora of projects, preference of policy type can help you shortlist a handful, but comparison among these handful plans will help narrow down your purchase decision to the one. Thus, you need to compare the available programs and make the right choice. A car insurance calculator is a handy tool that can help reach these policies not based solely on price but also on the features, inclusions, and exclusions underlying them.
3. Check your IDV
IDV or insured declared value is one of the critical components determining the policy premium. Moreover, it is that amount which the insurer pays if your end up totaling your car or your car is damaged beyond repair. Thus, you need to ensure this IDV is set right to provide adequate insurance coverage.
4. Balance deductible and premiums
A good car insurance policy helps to strike a balance between the deductibles in your policy and the resulting premiums. Deductibles are the amount you need to pay before the insurance company compensates for the damages. Thus, opting for a higher deductible may lower your premium but require a higher out-of-pocket expense. * Standard T&C Apply
5. Select only useful add-ons
Comprehensive policies let you customize the policy coverage using an add-on facility. These add-ons, being an optional and additional policy feature, end up bumping up the premium. Hence they must be selected carefully. Only those add-ons that enhance your policy’s coverage must be opted for.
These are some of the important ways how you can ensure a policy that is not only feature-rich but also pocket friendly. Also, keep in mind insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.