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What you must know before buying a Car Insurance Policy

When you buy a new car, your car dealer makes sure that your car comes with a mandatory third-party insurance. This makes sure that in case of an accident, you are covered for any liability that arises due to third-party damages caused by your vehicle. So for the first year, your car is insured as per the mandate but what happens when it’s time to renew. How do you go about renewing your insurance? Well, this is a situation many car owners find themselves in. This may happen because either you are not sure about where to buy a car insurance policy from, or you are not aware of the important aspects of a policy. But there’s no need to worry about it, because we can help you with that. You must be already aware of the fact that a car insurance policy is important, so that in case you are in a difficult situation like, a road accident, your car repair expenses are covered. 

An understanding of some of the key aspects of a car insurance policy will help you pick one that fits your requirements and budget. Below we have mentioned some pointers that you must consider before buying a car insurance policy. 

1. Type of plan

You can either buy a third-party insurance plan or a comprehensive plan. Each of them caters to different needs. While a third-party insurance plan is lighter on the pockets, it offers minimal coverage as compared to a comprehensive plan. The third-party plan is however mandatory to purchase.

A comprehensive plan offers you with a wider coverage to include both, third-party insurance and also damage to your own car as well. The premium maybe slightly higher but given the coverage it gives you in times of an emergency makes it a wise choice. 

At the end of the day, it is up to you to choose which policy would better fit your needs and then purchase the same.

2. Add-on covers

Add-ons as the name suggests are the additional covers that you can buy to enhance the coverage of your car insurance policy. Add-ons come at a minimal additional cost over and above your policy premium.

While it is not mandatory to purchase add-on covers for your car insurance policy, it is worth taking a look at the different ones on offer. By paying a small premium amount for add-ons, you can secure a much better and wider coverage for your car. Some of the most commonly purchased add-on covers include invoice protection cover, zero depreciation cover, NCB cover, and engine protection cover. 

For example, a zero-depreciation cover for your own vehicle is a must-have, or if you reside in an area that is prone to waterlogging, anengine protection cover is a must.

3. Check the number of network garages around you

Before buying the policy, you must find out about the network garages of your insurer. This information is easily available, and it will be helpful in case you need to take your car for repairs caused by an accident. Network garages have tie ups with insurers and if you take your car over for repairs, you can avail cashless benefits through these garages where the insurer will make a direct payment of the bill to the garage.

Tip: Make sure to check which insurer is tied up with your preferred garage and then buy the policy of that company. That would save you a lot of hassles.

4. Adequate IDV

The Insured Declared Value (IDV) of the car is perhaps the most important factor affecting your policy. It is important to get a car insurance policy with the right IDV so as to enjoy the benefits of the policy later on.

Tip: Try not to compromise on your IDV in order to lower your car insurance premium.

5. Deductibles

A deductible is referred to as a minimum amount that a policyholder must pay during the claims. Insurance companies usually have a mandatory deductible and a voluntary deductible. 

Tip: Opting for a voluntary deductible at the time of policy issuance might be helpful to lower your premium but it can also reduce your claim amount. Thus, choose wisely.

We hope that these aspects were informative to you and now you will find it easy to buy a car insurance policy and understand the terms mentioned under it. These factors will help you make a wise choice while the policy. To make it simpler, just download and login to the Bajaj Finserv App.

Anywhere, Anytime insurance with the Bajaj Finserv AppThe Bajaj Finserv App is a high utility App that takes care of all your financial needs including insurance. On the app, you can explore car insurance plans from our trusted partners. Here you can view product features, compare prices and purchase a plan that is best suited to your needs. All this in a matter of minutes and from the comfort of your home. It truly is becoming the new way to buy insurance.

Williumson

Kate Johnson is a content writer, who has worked for various websites. She is also a college graduate who has a B.A in Journalism.

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