Owning a car is a dream that each one of us wants to fulfill once we start working. It seems a big achievement when you drive your car as the purchase is made from your hard-earned money. Along with research on the car manufacturers and the car type, you must also spend time researching the insurance options for the car. Though we always think positive about things that happen in our lives, it is always practical to insure your valuable belongings.
So, what is car insurance? Car insurance is an insurance policy that will be supportive in claiming the liabilities that arise during the time of any untoward incident with your vehicle. Choosing the appropriate car insurance policy i.e. third party car insurance or comprehensive car insurance is extremely important.
Researching about car insurance and looking for reviews was a very painful process but with the advent of the internet and smartphones, you can compare car insurance policies while on the go at the tip of your button. You no longer have to visit the insurance company as all the details are accessible online.
In this article, we deep dive into useful tips to buy tailor-made car insurance online:
It is necessary to understand that the insurance terminologies used by the insurance providers will be the same but there might a significant difference in their offerings. Just by looking at comprehensive car insurance or third party car insurance, you might not know about the details of the insurance policy.
Many insurance aggregators provide useful information about policies from different insurance companies. You can also seek advice from friends and family members who already own four-wheeler as they can guide you to choose the right insurance provider and appropriate insurance policy.
2. Do your homework
The common principle is that the insurance coverage will increase with the price of the car. For example, if you own a high-end sports car, the amount spent on repair of the car will be huge in case the car meets with an accident. Hence, opting for only comprehensive car insurance coverage might not be a good option in this case.
If you are able to afford a high-end car, you should also be in a position to pay a higher insurance premium for the vehicle policy. It is recommended that the car owner does a sufficient amount of homework before researching online else the research might bias this/her thinking.
When you have decided to opt for an insurance policy, do a thorough analysis of the coverage offered by the policy. If needed, you should choose appropriate add-on cover so that you do not feel the financial itch when any untoward incident occurs.
3. Quick Car Insurance Calculator
Instead of reading content, it becomes easier if you get the most relevant information just by keying in the required information. With the quick car insurance calculator, you can get the price estimate of the insurance policy.
The advantage of using the quick car insurance calculator is that you have to just enter the necessary details such as the policy holder’s name, address, contact information, etc. and it will give you the appropriate quote. Below are some of the four-wheeler variables that need to be added in the calculator:
- IDV (Insured Declared Value)
- Age of the car
- Details about the car
- Engine size
It does not matter whether you have purchased your first car or it is your second four-wheeler purchase; always make judicious use of the quick car insurance calculator to save on your insurance.
4. Know the IDV of your car
In simple terms, Insured Declared Value, also called IDV is the maximum amount that can be claimed under the four-wheeler insurance policy. A widely known fact is any type of automobile is a depreciating asset and its value reduces the moment it is delivered to the customer i.e. keys are handed over to the customer. In accordance with that principle, a new car will always have a higher IDV when compared to an old car.
IDV is the amount that the car owner receives in case there is damage to the car or the car gets stolen. It is recommended to have detailed knowledge about the IDV of the car as the knowledge will come handy someday or the other.
5. Opt for Comprehensive Insurance Coverage
If you are using the vehicle regularly, it is advisable to go for a comprehensive car insurance policy instead of third party car insurance. As the car is being used on a regular basis, there are more chances of it getting damaged e.g. getting scratches or meeting some minor accident due to the mistake of other drivers on the road.
Many yellow-board vehicle i.e. taxi owners choose third party car insurance policy over a comprehensive car insurance policy.
Comprehensive car insurance policy is useful in such cases as it provides the benefits of third party car insurance along with covering the damages that are caused to your car. It also protects your car from any accidental fire, theft, or any other damages that are covered under the insurance policy.
Whenever a claim is made through vehicle insurance, a certain amount called deductible has to be paid by the vehicle owner. There are two broad types of deductibles - voluntary deductibles and compulsory deductibles.
Voluntary deductible is the amount that is fixed by the insured and needs to be paid during every claim. Vehicle owners opt for this option as they can avail some discount on the insurance premium. As the repair cost is shared, it results in lowering down the insurance premium.
On the other hand, compulsory deductible depends on the CC of your car engine. The amount to be paid under compulsory deductibles is prefixed by the insurer on the car insurance premium.
Apart from these factors, you should also look into the NCB (No Claim Bonus) and avail the NCB reward at the end of the year. Always spend time on quality research before buying a car insurance policy as you would see the benefits over a period of time.