Factors to Consider Before Purchasing Comprehensive Car Insurance

If you own a car in India, you have to insure it. It is mandatory to do so. While the law makes it compulsory to purchase a Third-party Liability policy, it is suggested to opt for a Comprehensive plan for extensive coverage.

Accidents and other unfortunate events cannot be predicted. However, their probability can be gauged. Insurance is only provided once this probability is determined. A Comprehensive Car Insurance policy includes the mandatory Third-party Liability policy and offers a wide insurance coverage.

Consider the following four factors before purchasing a Comprehensive Car Insurance policy.

• Risk Exposure

You should avail insurance based on the risks you might be exposed to. For example, a car is more prone to accidents if it is frequently taken through risky routes or on long weekend drives, compared to one that’s parked in the garage most of the time. Identify the risks you might be exposed to first and then go for adequate coverage.

• Add-ons

Add-ons are not compulsory, they are optional, hence the name. Analysing your risk exposure will help you choose appropriate Add-on covers. For example, if you reside in a flood-prone area, you might want to avail the Engine Protection Add-on Cover. If you want help while you are stranded in the middle of the road, go for Roadside Assistance.

With a Zero Depreciation Add-on, your insurance provider will not deduct the vehicle’s depreciation while settling the claim. No Claim Bonus (NCB) Protect Add-on will keep your NCB intact even if you make two claims in a year. It is important to select a suitable Add-on and know about its coverage in detail before purchasing.

• Deductible

When you purchase car insurance, you will come across something called deductible. A deductible is a small amount, deducted from a claim, which the insured person would have to pay.

There are two types of car insurance deductibles, Compulsory and Voluntary. Compulsory deductible is pre-defined while Voluntary deductible can be adjusted as per your wish. If you opt for Voluntary deductible over Compulsory deductible, your premium amount will go down (based on the percentage of your contribution). However, be cautious while increasing the Voluntary deductible, as you will receive a lesser amount while claiming, since your premium was less.

• Credibility of the Insurer:

The credibility of an insurer is of the utmost importance when it comes to purchasing a policy. You want your insurer to stand by you in tough times. Claim-related processes need to be stress-free. You do not want to get stuck with an unsuitable insurance company for a long period of time.

Yes, portability is an option but it does take an effort. It is better to conduct basic research regarding the credibility of an insurer before purchasing the policy. Speaking to friends and family, and checking online reviews is a good way to verify the credibility of an insurance company.

Also, read: Top 6 Reasons For Switching To A Better Car Insurance Company

• Comparison of Vehicle Insurance:

Do not skip car insurance comparison and jump straight to purchasing a policy. Car insurance comparison can help you to understand the cover, features, and the price charged. You can compare policies on aggregator websites as well as by browsing insurer’s websites individually. You can get insights after visiting the insurance company’s website as they offer cover-related information in detail.

While comparing, do not get blinded by the premium. Check whether you are getting enough and needed coverage at the offered price. Digital insurers are known to offer optimal coverage at a low premium.

• Extra Features:

The car insurance industry has become competitive due to the advent of digital insurance. Traditional insurance companies have adopted a digital way of life. Digital-first insurers have also come into the picture. Amidst this, existing and prospective policyholders are the ones who are getting benefitted thanks to better features.

Some insurers might provide free of cost pick-up and drop services (from accident spot/home to the garage and back to your residence). Insurers might also bundle select Add-ons in their Comprehensive plan. Keep an eye on these extra features while thinking about purchasing a long-term insurance policy.

Frequently Asked Questions:

FAQs

Can I renew long-term car insurance online?

You have the option of buying or renewing long-term car insurance online. Online car insurance renewal is simple. You can insure your car within minutes.

How can I clarify my doubts about buying long-term car insurance online?

Make sure to read the policy document and clear your doubts by getting in touch with the insurer before buying or renewing a long-term car insurance policy online. You can contact your preferred online insurance company by calling their support team or by sending them an email.

Who decides the premium for a Third-party Liability policy decided?

The insurance premium for the basic Third-party coverage is not decided by car insurance companies. They have to follow the rates mentioned by the governing authority of insurance in India, which is the Insurance Regulatory and Development Authority of India (IRDAI). These rates may or may not change annually.

Who decides the premium for a Comprehensive car insurance policy?

The premium for a Comprehensive car insurance policy can be determined by the insurance companies. Therefore, different insurance companies charge different insurance premium for their Comprehensive Plans.

Is Roadside Assistance an Add-on feature?

Roadside Assistance is an Add-on cover. However, some insurers might offer it as a part of their Comprehensive plan. To understand it in detail, you will have to go through the inclusions of the policy you are about to purchase. If you feel you are unable to understand the inclusions, you can contact the insurance company via call or email and clarify your doubts.

Where can I come to know about the terms and conditions on my car insurance policy?

Important details about the car insurance policy are usually mentioned on the web page from where you are about to buy or renew the plan. Sometimes, you might not get in-depth information over there. To know about the terms and conditions of your desired car insurance policy, you can look at its corresponding Policy Wordings. This document can be downloaded from your insurance company’s website. Usually, it is located under the website’s Downloads section.