Points to Make the Best Out of Your Car Insurance Policy
If the cost of your car insurance plan is dragging you down, use these tips to make the best out of your car insurance policy. Read on to learn more.
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When it comes to purchasing a car, you plan and research its model, cost, engine, tires, and so on. So, why not follow the same tip while picking a car insurance policy? You should never underestimate its importance as it is vital for you as a car buyer to consider car insurance and bring the best out of it to ensure future financial security. Let’s discuss some major factors which you must consider before purchasing a car insurance policy online.
1. Select A Policy As Per Your Needs
Motor insurance comes with two insurance plans that comprise third party car insurance and comprehensive car insurance. The third-party cover is compulsory and takes care of third party liabilities only while the comprehensive plan is highly recommended that gives coverage for third parties as well as own damage expenses. The third-party liability coverage is cheaper as it provides limited coverage while the comprehensive plan is costlier as it provides extensive coverage. So, you should consider your requirements and budget before buying a car insurance plan.
2. Right Insured Declared Value (IDV)
Insured Declared Value is the ultimate factor that determines your car insurance premium. The current market price of your car is known as the IDV which is also the amount that is provided by the insurance company to policyholders for a stolen car or if it gets damaged beyond repair. However, you should know that the higher IDV value will increase the premium and lower IDV will reduce the claim amount. Hence, you should not declare the wrong IDV to save premium as it may provide you with insufficient cover during claim settlement.
You may also like to read: Benefits of Renewing Your HDFC ERGO Car Insurance Policy
3. Choose Add-on Covers Wisely
Add-on covers are meant to expand your policy coverage. You can opt for any required add-on by paying an extra premium for it. There are several covers available to choose from such as zero depreciation cover, return to invoice, engine protection cover, roadside assistance cover, passenger accident cover, etc. Each add-on cover holds a unique benefit which you should choose as per your budget and requirements.
4. Keep Your NCB Intact
No Claim Bonus (NCB) refers to a reward in terms of a discount that is given by insurance providers to their policyholders for not making a claim in a policy year. To keep the bonus intact for availing its discount on the next years premium, you should keep your policy active by renewing it time and not making any claim in a policy year, otherwise, you may lose the bonus accumulated over the years which can go as high as 50% for 5 consecutive claim-free years.
5. Pick Deductibles Carefully
A deductible denotes the percentage of the cost which the insured person agrees to pay at the time of repair work or claim settlement. Deductibles are of two types such as compulsory and voluntary deductibles. Under the voluntary deductible, you can choose to pay the percentage of deductibles but under the compulsory deductible option, the insurance company decides the percentage of the claim amount that you need to paid by the policyholder. A higher deductible means a lower premium cost to be paid by the customer, so you should choose the deductibles as per your premium paying capacity.
Also Read: SBI General Cashless Car Insurance Process Explained
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.