Buying a car is always cause for celebration, but it’s even more important to safeguard this occasion to ensure continued bliss. The best way to do this however, is by getting car insurance.
A car insurance policy acts as a silent protector, coming into play anytime you face issues with your vehicle. Most car dealerships offer car insurance at the time of sale. But you shouldn’t just buy the first insurance plan you can find. First, you should know everything about the types of car insurance policies available in India
Third party Car Insurance Policy
Third party car insurance was made a mandatory requirement by the Motor Vehicles Act, 1988. This type of car insurance policy protects you from any issues arising from damage done when your car is involved in an accident. This means protection against legal liability arising due to death, disability, injury or sizeable property damage to a third party. The downside to this type of car insurance is that it doesn’t provide any coverage to the insurer.
Comprehensive Car Insurance Policy
As the name suggests, this type of car insurance policy’s benefits are more inclusive than third party car insurance policies. While third party insurance helps in covering damage caused by your vehicle to a third party, comprehensive car insurance covers your vehicle against damages too. It’s an easily affordable plan that offers enhanced benefits in the form of add ons. These add ons help make your car insurance policy better suited to your needs.
A car insurance policy usually covers the following:
- Damage or loss of any kind done to the policyholders’ vehicle
- Any consequences of an accident or other factors like theft, fire, explosion, lightning, riots, strikes or act of terrorism, natural calamities, and more
- Any damage caused to a third party/person/property
- Personal Accident Cover
On the other hand, your car insurance policy will not cover:
- Any damage that happens when the policy is not in effect
- Depreciation of the vehicle and its parts
- Any damage taking place when driving without a valid car license
- Damages occurring when driving under the influence or through substance abuse, drugs, narcotics, etc
- Any damage taking place due to oil leakage
- Any damage occurring when using your private vehicle for commercial use
Buy Comprehensive Car Insurance
1. Don’t buy the first Car Insurance policy you see
There are a number of car insurance policies available in the country today. In fact, when you purchase your vehicle, there’s a high chance that they’ll push for you to buy car insurance from their partner company. But while the convenience in this method is higher, you lose out on offers more suited to your needs when you forgo the exploration process.
2. Determine YOUR needs
Everyone has different circumstances and lifestyles. That is why a one-for-all car insurance is not the best path forward. Some of the elements that you need to focus on include:
- Conditions of roads in your locality
- Areas where you are planning to take your vehicle
- Have there been instances of car theft in your area
Depending on factors like these, you can understand what your requirements are from the car insurance policy. For example, if you stay in an area prone to flooding, you should look for a plan that covers engine damage from water.
3. Check for add ons in your car insurance policy
Car insurance policies from leading brands available on Coverfox provide a range of additional options you can choose from, to customize your plan according to your needs. Some of these include:
- No Claim Bonus Protection Cover
- Engine Protection Cover
- Zero Depreciation Cover
- Consumables Cover
- Key Protection Cover
- Personal Accident Cover
- Daily Allowance Benefit
- Cover for Car Accessories
But you shouldn’t blindly pick every add on available, as each extra perk comes with its own set of premium payments. Select the ones that matter most to your vehicle and life, for a fully secured future.
4. Claims process offered by your car insurance company
The main objective behind purchasing car insurance is to get essential aid in the moment of distress. That is why, while investing in your car insurance policy, you need to pay attention to the company's claim settlement record (CSR). This helps in determining the response you will get when approving your claims.
5. Double check all policies and terms of Car Insurance
Today, many car insurance companies like Coverfox have begun simplifying the terminology and processes for the convenience of their consumers. But in other options you must make sure to read all the terms and conditions listed in your car insurance policy before making your purchase. The fine print in your contract can lead to a shock in the future if you are unprepared for the terms you have agreed to in the contract. That is why, after comparing your car insurance policy options online, get in touch with an insurance advisor, so you get a comprehensive understanding of the deal you are embarking on.