Buying a car insurance policy may often be regarded as perplexing decision. With different features a policy has to offer, it can cause confusion. Thus, it is important to do your homework and take note of the differences and only then finalise a policy. This article elaborates on some of the essential tips that can help you in decide on a suitable car insurance cover. Let’s have a look:
1. Selecting the right type of insurance cover
The foremost decision before you buy car insurance online is to make a choice of insurance policy. Two types of car insurance plans are available – a third-party cover and comprehensive cover. Selection of either policy must be based on the coverage you seek.
A third party car insurance plan, also known as liability-only plan, provides protection against third-party legal liabilities. Being a bare minimum insurance policy required as per the Motor Vehicles Act, it provides protection against the damages in the event of 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 not only covers the third-party liabilities, but also repairs that are required to your car. Further, a comprehensive policy can also be customised in coverage. Based on this information, you need to decide which type of insurance policy you must opt for.
2. Comparison is the key
Next point to remember when making a choice of insurance plan is comparing the available plans. From a plethora of plans, preference of policy type can help you shortlist a handful, but comparison among these handful plans will help to narrow down your purchase decision to the one. Thus, you need to compare the available plans and make the right choice. A car insurance calculator is a handy tool that can help to compare these policies not based solely on price, but also the features, inclusions and exclusions underlying them.
3. Check your IDV
IDV or insured declared value is one of the critical components that determine 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 make sure this IDV is set right to provide adequate insurance coverage.
4. Balance deductible and premiums
A good car insurance policy is that which helps to strike a balance between the deductibles in your policy and the resulting premiums. Deductibles are that amount which you need to pay before the insurance company compensates for the damages. Thus, opting for a higher deductible may lower your premium but will require a higher out-of-pocket expense. * Standard T&C Apply
5. Select only useful add-ons
Comprehensive policies let you customise the policy coverage using add-on facility. These add-ons, being an optional and additional policy feature, end up bumping up the premium, hence 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 sales brochure/policy wording carefully before concluding a sale.