Car insurance protects you from having to pay for damage caused to/ by your car. There are mainly two types of car insurance policies:
- Comprehensive Car Insurance
- Third Party Car Insurance
Comprehensive covers protect your car and also pay for any damage caused by your car to third parties. Third party covers, meanwhile, only cover third party damage and are mandatory in India.
There are many options available for both types, and choosing the right car insurance policy for yourself can be quite hard. However, a little research will show you which policies the best suit your requirements. Moreover, there are certain steps you can take to choose the best car insurance policy for you.
Choose the insurance provider carefully
While there are a lot of policies out there, only a few are by reputed general insurance companies. The reputation of the company matters to know the likelihood of your claims being paid. You need to check for the following of your shortlisted car insurance company:
- Claims settlement ratio
- The time required to process claims
- Customer reviews
Understand the policy coverage
Comparing the key features of the policy to know what all is covered is absolutely necessary. This will tell you if the policy meets all your requirements. Many car insurance policies have similar coverage, but it is still important to understand the fine print. For example, while certain car insurance policies may cover damage due to terrorist attacks, others may not.
Check the insured declared value (IDV) offered
The IDV is the maximum Sum Assured decided by the insurer, that is provided on theft or total loss of the insured vehicle. This amount is usually equal to the current market value of the vehicle but decreases with time and the depreciation of the vehicle. Be sure to not understate the IDV for a lower premium. This would cause you to lose more money in case you suffer a total loss of your vehicle.
Review add-ons/riders on the policy
There are many add-ons or riders that you can purchase with a car insurance policy, at an extra premium. These riders provide extra coverage like:
- Roadside Assistance Cover: This lets you call the insurer for a mechanic/ roadside assistance at your location, instead of having to take your damaged car to the garage.
- Zero Depreciation Cover: This cover waives off your depreciation on substituted parts, making you eligible for a higher claim amount.
- Personal Accident Cover: This protects the owner of the vehicle against unexpected trauma/ events, partial/ permanent disability, and even death caused by a road accident.
- Compare car insurance premiums online
There are many online car insurance deals available in the market. While it is often cheaper to buy policies online, ensure that your needs are met. Review and compare various policies and their premiums before you purchase one.