Purchasing an insurance for your car is mandatory as per the Indian Motor Act. Is that the only reason you should buy car insurance for? I guess the answer is NO. There are multiple other reasons why you should buy insurance for your car. We will tell you which factors you need to consider before you buy an insurance product for your car. Knowing these factors will help you determining a car insurance that fits the best to your need.
- Suitable Plan
Indian Motor Act mandates you to buy the car insurance policy that covers injuries caused to other person in an accident. Most of the people choose to buy a comprehensive car insurance policy that additionally covers the damage of your own car. You can choose to buy either of them.
- Additional coverage
Some of the standard insurance companies provide additional benefits such as Hydrostatic Cover and Zero Depreciation Cover. The Hydrostatic cover provides coverage from the damage caused due to water logging. The Zero Depreciation Cover policy is mostly purchased by high end car owners, where depreciation amount is much higher than the premium paid to the insurance company. These coverages create an additional layer of protection for your car.
- Cashless claim facility
Always ensure that the insurance company provides the cashless claim facility at the garage where you repair your car regularly. It gives you convenience of giving your car to your trustworthy garage. It also saves your time and energy spent on getting your money reimbursed from the insurance company.
- Insured Declared Value (IDV)
Insured Declared Value is the amount that insurance company provides you as per the current market value of your vehicle for the current year. You are eligible to receive this amount only if there is a total loss or if your car is stolen. This value varies every year and it is completely decided by the insurance company as per the value of the car for the respective year.
- Basic Deductions
There is a basic minimum amount that a car owner has to pay to settle every claim. Generally, this amount is minimum 1000 or 2000. This amount varies company to company. This amount is charged to car owner to avoid the submission of any fake or small claims or to reduce the number of such claims.
- No Claim Bonus
If you have not made any claim during the entire year then you are eligible for the No Claim bonus while paying the premium of the policy for the next year. This bonus amount is 5-10% of the insured declared value (IDV). At the time of renewing the policy, ensure that you receive this bonus if you have not made any claim during the previous entire year. You can accumulate this amount up to a maximum of 50% of the insured declared value.
- Policy renewal criteria
The policy renewal amount can differ depending on many criteria. The below mentioned criteria can have the major impact on the renewal value:
- Additional rider selected or removed by the car owner
- Basic value of the car, which changes every year depending on the Insured Declared Value
- Type of selected plan
- NCB (No Claim Bonus), it is carried forward only if you have not made any claims in the previous entire year
- Other benefits, if applicable
You can always transfer your insurance policy from one insurer to another. When you transfer the policy, always ensure that all the benefits/perks from the current insurer are transferred to the new insurer, such as no claim bonus, accurate IDV etc.
- Claim process
It is very important that the claim process of the insurance company is easy and efficient. So always ensure that the insurance company provides easy and hassle free claim process.
- Compare the plans online
When you are buying or renewing any car insurance policy, it is recommended that you get a few quotes online. Compare those quotes based on your requirements and then choose the quote that satisfies your requirement with the best price.
Choose your insurer wisely
Your car dealer, generally, offers you the car insurance. Purchase that insurance product only if you find it the best and the cheapest. It is not mandatory for you to buy dealers insurance while buying a new car. You can choose to buy any other insurance product from the market as per your requirement. As a practice, always buy an insurance product only after comparing quotes and features from various insurers online.
Know the IDV of your car
It is very important for you to know the Insured Declared value of your car. This value is the maximum amount that you can claim for your car under the Motor Insurance policy. Older the car lesser the Insured Declared value. It is directly connected with your car insurance premium amount.
Car insurance premium varies according to location and cubic capacity of the vehicle
The insurance premium of your car differs according to the geographic location and the cubic capacity of your car’s engine. You may have to pay different premium for the same model of car at the different locations. Metropolitan cities will have higher insurance premium as compared to non-metropolitan cities.
Keep the above points in mind while buying the insurance product for your car and surely you will end up buying the best product at the cheapest price.
We wish you get the best deal for your car!