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Messing up with Car Insurance: A Complete No No

Janhavi Shinde Janhavi Shinde 27 October 2016
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Learn the tricks to opt the right cover for your prized possession. Read here to know more.

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In my previous article, I have mentioned about the Motor Vehicles Act of 1988. In India, it is mandatory that every vehicle being driven on the road be insured. Basically, the car insurance is classified as third-party car insurance and comprehensive car insurance. Though third-party car insurance is mandatory by law, opting for a comprehensive policy is only as per one’s wish.

Analyze the below before you buy a car insurance policy As they say, “Never trouble trouble till trouble troubles you”. So, why be troubled when you can easily analyze your own needs and help yourself to choose the right cover for your car?

1. Investigate your Coverage

Understand, analyze and study your coverage. Make sure that you cover your car adequately. We are not asking you to pay high chunks of premium, but also not be under-covered. Paying huge premiums also does not really make sense.

For Example, third-party car insurance is mandatory by law. If you opt chose to opt for a third-party car insurance and your car happened to meet with an accident. Here, coverage is guaranteed to the third party only in the event of bodily injuries, permanent disability, and accidental death. But, the million dollar question is happens to your car now? Here, your assets could be at risk if it had to be a major accident. Therefore opting for a comprehensive car insurance would now make sense to avoid the major repair expenses.

2. Go Shopping just like Club Hopping

On a weekend, the way you go club hopping, similarly go shopping online while you buy your car insurance policy. With the different types of insurance products available, you can narrow down your search of selecting the correct insurance policy as per your requirement.

We at provide good comparison of different insurers on the basis of premium, cashless garages, claim settlement ratio etc. By comparing the car insurance policies online you save a lot of money since this involves less paper work. You also get a widespread range of products. So compare car insurance before you finalize one and give a thumps-up for your wise decision.

3. Buy Add-ons

Getting your prized possession insured is the first step when you buy a car. Still, protecting it wisely by going for suitable add-ons becomes like a cherry on cake. There are varied types of add-ons provided by Insurance companies such as bumper to bumper, paid driver cover, engine protector, roadside-assistance and passenger cover to name a few. This means, you pay a little extra to cover all your risks. Yet, check what add-on best suits your car and then opt for one.

4. Free Look Period

Not many of you’ll know that there is a certain time frame decided by the Insurance companies during which you can decide whether to continue the policy or not. This time frame is called as free look period. If you are feel hopeless with the policy terms and conditions or with the facilities or services of the Insurer, you may go for policy cancellation and ask for a refund.

5. Don’t Shy to ask for Discounts

Feeling shy to ask for discounts? Don’t be so. It can actually help you save some bucks? You can earn upright discounts for being a good and safe driver! The most overpriced parts of the car like the gear lock, safety equipment’s, air bags etc. can actually benefit the insurer since it reduces the cost thereby giving you perks and rewards for your safe and responsible driving.

6. Keep a Watch on the Insured Declared Value

Don’t you ever forget the value of the car before buying the Insurance policy. Insured declared value or the IDV is one of the major factors that decides the premium of the car. Always ensure the premium charged is correct because lower the IDV, lower would be the premium. In the event of total damage, make sure that your IDV is right. If it happens to be incorrect, you would then have to shell out a huge amount from your savings. So ensure to declare the correct value of the car.

So avoid the commotion and pick the right coverage.

We hope this article was valuable for you to keep in mind the minute details before buying car insurance for your prized possession.

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Janhavi Shinde
Written by Janhavi Shinde
Right from being a Flight Attendant to a Banker and now to a Content Writer, she has tasted success in all the fields. The kinda girl who loves pets and knows how to manage difficult people and events.