Knowledge Centre

5 Questions to Ask Before Buying Car Insurance

With road accidents and car thefts on a rise, it has never been more important to ensure you insure your car with a good car insurance policy that safeguards you against all the potential risks. To buy a good car insurance policy, you actually have to be wise and spend enough to read on the features and coverage offered under the policy. Spending some time researching on the terms and conditions of the policy is essential to ensure you are covered at all times and are not left disappointed at the time of making a claim. For this, we have listed down a few questions that should be on your checklist when you buy car insurance.

What is the coverage offered under the car insurance policy?

The coverage offered under the policy is an important aspect to check as on the basis of it you will be able to make a claim and pay the premium. Car insurance policies are of two types-comprehensive policy and third-party liability policy. While opting for comprehensive car policy is a matter of choice,third party insurance is mandatory as per the Motor Vehicles Act, 1988. The comprehensive policy insures your vehicle against theft, fire, self-ignition etc and natural calamities, whereas, third-party insurance provides coverage only for the damages, injury or death caused to third person or property..

What is insured declared value?

The insured declared value of a vehicle is deemed to be the sum insured that is fixed by the insurer at the time of policy purchase. The value is fixed as per the manufacturer’s listed selling price as is adjusted on the basis of the depreciation schedule. Insured declared value is important factors as your premium amount will depend on the same and also the claim settlement amount. IDV is the maximum amount you can claim for in case of a total loss of theft of the vehicle.

How can I get the best car insurance deal?

Many insurance companies offer car insurance online and offline at up to 70% discount. You can get the best car insurance deal online or can connect with your insurance agent to know about the same.

What are the add-on covers I can opt for?

You can buy add-on covers with your comprehensive car insurance policy. Adding add-on covers to your car insurance policy helps you enhance the coverage, thereby offering you additional benefits. Different add-in covers you can buy with your car insurance policy are: zero depreciation, return to invoice, no claim bonus protection and others.

What are the exclusions of the policy?

A car insurance policy generally does not cover the following:

  • General ageing, wear and tear

  • Mechanical or electrical breakdown

  • Damage caused when driving under the influence of alcohol or drugs

  • Damage caused when driving without a valid driving license

  • Damage caused to tyres and tubes, except in case of an accident

  • Loss or damage caused due to war, nuclear risk

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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