So, you have decided to buy a car. This means you need to think long and hard about buying insurance for the cover of the vehicle. Well, you can go for the insurance package offered at the showroom, but you can also choose the best one according to your budget and car choice if you are willing to go through the following post. It is not complicated or intimidating. Understanding what type of cover you need is as simple as logging in to your favorite insurance website to find the perfect personal car insurance quotes.
So, what exactly do you need to keep in mind? Let us have a look.
1. Choose the right policy
There are two main types of policies available: third-party insurance and the comprehensive cover. The former might be mandatory depending on the state of your residence, but the later is the more beneficial. The third-party coverage will provide the basic cover; against third-party incidents and involvement.
2. Set the declared value
The IDV or the Insured Declared Value might sound like jargon, but it isn’t one. It is the approximate current market value of your vehicle. It is not the resale value of the car. Therefore, keep in mind that the IDV is more like a reference point, and therefore when you are going for the comprehensive coverage, make sure to set the IDV as accurately as possible. Additionally, it would help if you remember that setting a higher IDV will result in higher policy premiums. A lower IDV will result in a reduced claim in case of theft or accidents.
3. The case with the deductibles
Again, there is no need to worry! Understanding this facet is quite simple. The deductible is the amount you are supposed to pay as the policyholder when you are going for a claim settlement. Deductibles can be compulsory, as well as voluntary. If you are a safe driver, you can keep your deductible relatively high, which means you will have to pay low premium amounts. However, in case of an accident, your claim amount will be low as a result.
4. About add-ons
Any insurance service provider will always persuade you to go for additional coverages and various add-ons. Well, multiple add-ons do present the policyholder with numerous advantages, and these include zero depreciation add-on, passenger cover, roadside assistance, engine, accessory cover, and NCB protection cover. Since you buy each add-on separately, you are in the ideal position to pick and choose the vital ones for your daily operations.
5. Timely renewal is vital
A car insurance policy is like a bond that you shouldn’t break as long as you possess it. Keep it active at all times. Car insurance policies are usually single term-year options, but there are long-term options available as well. A lapsed policy is of no use to anyone and can get you into a spot of bother with the legal authorities. Keep in mind with every passing year; you will be accumulating NCB or the No-claim Bonus as well, which is reset if your policy lapses.
These are the basics that will allow you to choose the best car insurance policy.
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