Planning to buy your dream car? Well, don’t forget about the insurance policy for your car that you’re going to need. A lot of people approach the need for car insurance as just another document needed to drive the vehicle legally. However, there is more to car insurance. Looking for a suitable car insurance policy is just as important as looking for a good car that suits your requirements.
Why do you need car insurance?
If your vehicle meets with an accident and is damaged considerably, your car insurance can save you from the different repair fees and bills. The type of coverage that car insurance provides will differ for different insurance companies. However, some of the cases and situations are covered by almost all of them. The extent of the coverage is also dependent on the amount of premium you pay for your coverage.
Before worrying about the car insurance price, it is important to look at how well your policy is crafted. A well thought out car insurance plan can not only protect your car from damage but also save you a lot of financial responsibilities. A comprehensive car insurance policy will provide you with risk coverage against different unforeseen events like natural disasters, road mishaps. Hence, it is important that you research thoroughly about the different policies available for you and pick the policy that suits your requirements.
Here are a few things you should consider before buying a four-wheeler insurance policy:
- The reputation of the brand:
When you are deciding on the car insurance policy, checking the reputation and image of the insurance company is extremely important. If you select a company with a good reputation, then you will probably enjoy good quality services. Also, be sure to check the claim settlement ratio of the brand. If they have had a poor record of settling claims of their customers, then don’t opt for such a provider. Hence, it is preferred to opt for a reputed insurance company, with a good claim settlement history and process, when buying a car insurance policy.
2. Discounts:
When you’re buying car insurance from a company, do not just rely on your agent for getting all the information on the policy. Do your own research on the policy and the different offers and discounts you are eligible to get. These discounts can help you minimise the amount of your car insurance. When you buy car insurance online, many insurance providers offer some discounts that further boost the online purchase of car insurance.
3. Network garages:
Every insurance company has a network of garages that will provide a cashless car repair service for any type of damage that the car has suffered during the insurance plan’s validity. Hence, when you are buying the car insurance plan, it is important for you to look at the network of garages that come under the insurance company. The information about the network of garages is available online on the insurance company’s website.
4. Coverage:
The usefulness of a car insurance policy will depend on the coverage that it provides. It is essential to check and compare the coverage that is offered by different insurance providers before buying the car insurance policy. The coverage can differ widely depending on the plan type and the insurance companies.
The amount that your vehicle is insured for is called the Insured Declared Value or IDV. It is the current market value of the car that is calculated after subtracting the depreciation amount. If your car is stolen or completely damaged, then this is the amount that you will receive as compensation. The premiums you pay during the period of the policy will depend on the IDV.
5. Add-ons for the insurance:
Even a comprehensive car insurance policy may not be able to completely protect your car. There are always some exclusions in the policy that you should be aware of. However, insurance providers offer some add-ons like Engine Protection Cover, Roadside Assistance and so on, for a price that will complement your insurance policy.
By adding one or more necessary add-ons to your policy, you can ensure 360-degree protection for your four-wheeler.
6. No claim bonus:
Insurance companies offer a discount on the car insurance premiums if the policyholder successfully completes the policy term without filing a claim. This benefit is called a No Claim Bonus, and the discount is applicable on the next premium that you pay. The No Claim Bonus increases if you manage to avoid filing a claim for the next policy term as well. The maximum NCB that is available is a 50% discount on the car insurance renewal premium if you do not file a claim for 5 years straight.
7. Zero Depreciation cover:
It is a well-known fact that the actual price of your car goes down over time. It is the result of asset depreciation overtime. With the correct car insurance policy, you can beat the losses of depreciation by opting for a zero depreciation add-on cover with your car insurance. When you opt for a zero depreciation cover, you are guaranteed that the entire claim amount would be paid to you without subtracting the depreciation sum.
Summing Up
In conclusion, you should never neglect the importance of selecting your car insurance carefully and plan well for all of the situations. Before going ahead with an insurance agent, consider some of the things carefully like the reputation of the company, network garages that come under the company, discount, coverage and car insurance price.
