Buying a new car is an ecstatic feeling. For this feeling to stay longer, investing in a quality insurance policy is necessary. The Motor Vehicles Act of 1988 makes it mandatory for every vehicle to have an insurance policy. When you start scouting for a policy, there are myriad options from which you can make a selection. But at times this process can be perplexing.
In this article, we have compiled some tips that you can use to get a suitable car insurance policy.
#1 Familiarise yourself with jargons
The insurance buying process can often be bewildering due to the complex terms used. If you eliminate these technicalities, it is a relatively simple document to understand. Thus, the first tip at your car insurance purchase is to understand the various jargons used. These jargons are standard across the industry. Below are a few technical terms that you must be aware of when buying an insurance cover:
First-Party and Second-Party: First-party refers to the insured, whereas the insurance company is the second party.
Third-Party: Third-party is the person who is aggrieved by the insured vehicle. In case of third party car insurance, the insurance company makes good for any liability that might arise due to damages to such third-party.
Own Damage: Own damage refers to the damage suffered by the insured vehicle.
No Claim Bonus: The insurance company offers a concession at car insurance renewal date for no claims made during the previous policy tenure.
Insured Declared Value: It is the maximum amount you can claim in case of a total loss.
These are some of the most commonly used jargons.
#2 Understand the various types of policies
Depending on your coverage requirement, you can either purchase a third-party policy or a comprehensive one. The Motor Vehicles Act of 1988 makes it mandatory to have at least third party insurance. A comprehensive policy goes the extra mile to ensure any damages to your vehicle, either due to an accident or other perils are covered under the policy terms.
#3 Select the right add-ons
As crucial as it is to select the right policy, it is equally essential to choose the right set of add-ons. Depending on your driving habits, the location where your car is driven, where you reside is vital to select the add-ons for your policy. These add-ons help to significantly enhance the coverage of your policy at a nominal price. Some popular add-ons to consider are zero depreciation cover, 24X7 roadside assistance cover, engine protection cover, NCB protection cover and more. Make sure you do not purchase unnecessary add-ons else they will increase the premiums.
#4 Comparison is the key
Before you finalise an ideal policy to insure your car, compare all the available options at hand. There are a plethora of plans that are available from various insurance companies that offer more or less similar features. It finally comes down to your preference for a particular insurer and premiums charged.
#5 Ensure timely renewal
Once you have purchased a policy, do not forget to renew on time. Timely renewals will help to avail the accrued benefits, which can be either additional coverage options or even monetary concession at car insurance renewal.
These are some nifty buying tips that will help you in selecting a satisfactory policy that ensures optimal coverage.
