After finally buying the car you have always wanted, the next important step is to buy a car insurance policy that suits your requirements. Even as third-party car insurance is mandatory by law, car insurance is necessary to protect you and your vehicle in the event of an accident, or even during minor occurrences such as breakdowns. There are two kinds of car insurance policies available today—third-party car insurance and comprehensive car insurance. Comprehensive car insurance policies can be customised with various add-on covers.
What’s best for someone else may not be good enough for you, therefore it is important to do a thorough research before buying a car insurance policy. There are several other factors too that need to be considered such as the reputation of the car insurance provider, number of add-ons provided. First, let’s look at the advantages of buying a car insurance policy.
Purchasing a car insurance policy offers numerous benefits. A motor insurance policy offers coverage against risks arising from an untoward incident. The car insurance policy protects you against any legal liability towards bodily injury, death, or damage to property. In the event of an accident, the car insurance provider is liable to settle the claim amount, as per the terms and conditions of your policy. Such a car insurance policy might also cover damages to your vehicle due to natural or man-made calamities such as floods, earthquakes, riots, and strikes. Additionally, you may enjoy coverage against loss or theft of your vehicle.
It is mandatory to purchase a third-party car insurance policy according to the Motor Vehicle Act, 1988. The following steps will help you choose the most convenient motor insurance policy.
Before investing in a car insurance policy, do your due diligence to obtain the best car insurance in India at the most competitive rate. Following are five tips to help you navigate the car insurance purchase process smoothly.
The first step towards buying a car insurance policy is identifying the type of coverage you need. There are two major coverage options—third-party cover and comprehensive insurance.
Mandatory for all vehicles, a third-party car insurance policy does not cover the policyholder’s vehicle. It provides cover to the third party in the case of bodily injuries or death. It also covers any property damage of the third party, and provides personal accident cover for the policyholder.
A comprehensive car insurance policy offers additional coverage along with third-party coverage. In such a type of car insurance, you may get financial protection in case of a bodily injury or damage to the vehicle.
Compare both the motor insurance options and make a well-informed choice based on your needs.
Car insurance providers offer the benefit of enhancing your coverage through riders. These add-ons allow you to customise your motor insurance plan according to your needs. Some of the common riders available with car insurance policies include zero depreciation cover, roadside assistance and towing, engine coverage rider, co-passenger insurance cover, and enhanced owner personal accident rider. Add-on covers are available at an additional premium above the cost of your basic motor insurance plan. While you will undoubtedly pay an additional amount of money to get the add-ons, the benefits they offer are also numerous.
For example, with your no claim bonus (NCB) protect add-on cover, you will get discounts in the form of lower premiums during subsequent car insurance renewal, even if you have made claims during the previous policy year.
In this digitised era, many motor insurance companies provide the benefit of online purchase. You may purchase a car insurance policy with just a few clicks either on the go or from your office or home. It not only helps save time, but also provides a great degree of convenience. You might avail yourself of good discounts while purchasing a car insurance policy through the internet.
Once you have shortlisted the car insurance company, you may go ahead with your application. Download the application form and fill in the required details. Remember, it is necessary to provide accurate and valid information to know the car insurance premium cost and benefits. Your car details will be helpful in the calculation of the premium. Upon successful payment of the premium, you will receive the certificate of your motor insurance. This is valid for the duration the premium is paid. For example, if you have paid a premium for one year, you may enjoy coverage benefits for a single year.
It is better to be safe than sorry. You should be prepared for any eventuality that may come your way by simply investing in a car insurance policy. Keep these tips in mind and buy the most suited car insurance plan for yourself.
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