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, note the differences, and only then finalize a policy. This article elaborates on some vital tips to 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 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, known as a liability-only plan, protects against third-party legal liabilities. As a bare minimum insurance policy required per the Motor Vehicles Act, it protects against damages in an accident inflicting injury to a third person or their property. However, it isn’t only a third party that sustains damages during a collision or accident. Your car is also impaired. Hence, you may opt for a comprehensive plan. This policy covers the third-party liabilities and the repairs required for your vehicle. Further, a complete policy can also be customized in coverage. Based on this information, you must decide which type of insurance policy to opt for.
2. Comparison is the key
The next point to remember when choosing insurance plans is comparing the available programs. From many projects, preference of policy type can help you shortlist a handful, but comparison among these handful plans will help narrow 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 that the insurer pays if you total your car or your car is damaged beyond repair. Thus, you must ensure this IDV is right to provide adequate insurance coverage.
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 must 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 you can ensure a policy that is not only feature-rich but also pocket-friendly. Also, keep in mind that 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.
