Which Car Insurance Plan is best for you ?
You have bought a brand new car and it’s time for you to insure it, but you are still wondering which type of car insurance policy suits your vehicle? No worries! With a few suggestions you can definitely be able to find the right car insurance for your car. Even if you are looking to renew an expired car insurance plan you can still follow the below mentioned tips. In a nutshell, car insurance policy is the much-needed safety shield for your car. It protects your financial losses due to damage caused to your car in the course of an accident, natural calamities or fire breakout.
While choosing car insurance plans you will have to keep in mind the below points
IDV: The total amount that you get if your car faces a total loss or theft
Age: Newer the vehicle higher the premium, so if your vehicle is old your premium will reduce so will the IDV.
Add on: Additional covers offer you a much larger cover by simply paying an additional premium; however the benefits are totally worth it.
Types of Car Insurance
Third Party Car Insurance: This is the mandatory policy, which helps you when there is any damage caused by your car to any third party person or property. It is the same policy, which traffic police often inspects. But, getting just the mandatory insurance to get away from legal formalities is not the long term solution. If you ever face an unfortunate accident leading to tremendous car damage, you have to burn a hole in your pocket for paying expenses for remain and any major injury too.
Comprehensive Car Insurance:This policy is just what you need. Be it an old car or a swanky new car right out of the showroom, comprehensive car insurance is highly recommendable. It not only gives you the mandatory third party cover but also offers own damage coverage. Own damage is the damage caused to your own car due to an accident, natural calamities, fire or theft loss. You get your car covered with a shield that promises to save your hard earned money.
Add on Covers
For a single year comprehensive insurance you can buy a wide range of add on covers for that extra protection
In most of the scenario, your claim is paid or IDV is fixed considering the depreciation factor, due to which you may often get a lesser claim settlement amount. Hence, if you buy zero depreciation cover or bumper to bumper policy then you will get the entire claim amount without factoring zero depreciation. Excess/deductible as mentioned on policy schedule has to be borne by you.
NCB or No claim bonus is the discount that you get on your renewal premium as a reward for making no claims in the last policy year.However, if you ever make a claim your no claim bonus is lost. This add on helps in protecting your no claim bonus, so basically even if you make a claim you still get the no claim bonus discount at the time of renewal. However, you can avail this benefit for a maximum of up to 3 claims.
Emergency Assistance Program
Imagine your car breaks down in the middle of nowhere, the only way out would be getting it towed to the nearest garage and get it checked. To help you during tough times, this add on cover provides emergency assistance so that nothing stops you from reaching your destination.
Loss of use / Downtime protection
When your goes under repair due to accidental damage and you have to rely on the public transport it gets cumbersome. We provide cash allowance for meeting day to day travelling expenses till your car gets repaired.
Cost of Consumables Items
Usually expenses for all non reusable parts of your car has to be paid by you in case of a repair due to accident, however if you take this cover your consumables cost is covered.
Engine and Gearbox protection cover
Imagine on a rainy day due to accident, if there is damage to the engine/gear box and chances are that engine oil will start leaking. In such a situation, if you continue to drive the vehicle, engine will get seized. Such damage is a result of a consequential loss which is not covered under the standard motor insurance policy. With this Add-on cover your car’s internal parts of engine and gearbox remains protected.
Return to invoice
What if your car is stolen or damaged to such an extent that it cannot be repaired? Theft or Total loss, isn’t it? In such a scenario with this add on cover your entire amount gets repaid by us on submitting FIR and other supporting documents. You have to ensure that an FIR has been filed and the car was not recovered within 90 days after the incident. In addition to this, registration charges and applicable taxes are also paid by us.
In a nutshell, the best car insurance plan should be the one with comprehensive coverage and most prominent add on covers to give it an all round protection.
Disclaimer: The above information is for illustrative purpose only. For more details, please refer topolicy wordings and prospectus before going ahead with the sales.