Insurance purchase is often regarded as a tricky experience. Considering the legal requirement, all car owners need to mandatorily buy one. However, with the myriad plans that are available, selecting a policy can be confusing. Questions like what policy should I purchase, which add-ons can be combined based on my needs, the appropriate insurance coverage are many more need to be addressed before finalising the coverage. This article mentions a thorough checklist that you can refer when you buy car insurance online.
- Choosing the right type of policy
Selecting the type of insurance coverage is the first step in insurance buying checklist. There are two types of insurance policies that you can buy—a third-party cover or a comprehensive plan. Both plans have different scope of coverage and thus it is crucial to decide upon at the beginning.
Third-party policies, or alternatively known as liability-only plans are insurance covers that provide protection against legal liabilities that arise due to an accident causing damage to third person’s pro property or even injuries. In both cases, you, the person at fault, are responsible for compensation that is required and thus the insurance cover protecting you against it.
Contrary to third-party covers, comprehensive plans provide an all-round coverage which includes third-party liabilities along with the repairs required for your car. Thus, with a comprehensive plan, you need not worry for any repairs that may be required for you vehicle. In addition to that, these comprehensive covers are customisable too.
- Opting for add-ons
Once you have decided upon the insurance coverage, the next step, if you opt for a comprehensive plan, is to purchase add-ons. Add-ons are extra policy features that can be bought with either comprehensive policies or even with a standalone car insurance cover. Selecting the right set of add-ons can significantly enhance the different events against which your car insurance policy provides coverage. Thus, not all add-ons offered by your insurance company need to be bought, but only those that add value. One thing to remember when opting for add-ons is that they are over the standard policy coverage and hence increase the premiums at purchase as well as insurance renewal. * Standard T&C Apply
- Setting the Insured Declared Value
Once the policy coverage is defined in full, the next step is to define the Insured Declared Value or IDV. IDV is the maximum amount which the insurance company pays in the event of total loss, or complete damage to your car. Undervaluing the importance of IDV can often lead to policyholders setting a lower IDV which may result in a financial loss in the event of complete damage. * Standard T&C Apply
- Limiting the deductibles
Deductible is that component that you are required to pay for every time a claim is made and is defined by the regulator, IRDAI. There are two types of deductibles, one mandatory while the other is a voluntary deductible. While no policyholder can escape the mandatory deductible, voluntary deductibles can be either not opted for in its entirety or kept at an absolute lower level. This will ensure a lower out of pocket expense for the claims made. You can visit the official website of IRDAI for further details.
Apart from the above points, you must verify the network of service garages as it will help to avail cashless repair facility. The broader the network, the better it is. In the end, do not forget to compare different plans for the above checkpoints. It will help you make a choice of the right insurance cover that ticks all the right boxes for you. A car insurance premium calculator is a handy tool that can aid the comparison process not just based on premium, but also comparing other parameters. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.