Owning a car in 2022 is more of a need than a want. But on the path of such ownership, it does bring a few confusions. These start from selecting the type of car and end only after choosing an insurance cover. There is a myriad of car insurance plans to choose from and it often can be confusing which policy suits you the best.
Considering car insurance is a legal requirement by the Motor Vehicles Act, it cannot be skipped. However, there are a few individuals who buy a car insurance policy for the sake of it. While it might help comply with the regulations, it offers limited insurance cover. This article mentions the different items to tick off when buying a car insurance policy.
- Ensuring third-party coverage
The foremost point to check is to buy a third-party insurance cover. It is the minimum required insurance cover and skipping it attracts hefty penalties. The coverage of a third-party cover includes protection from injuries to a third person and damage to their property. This way, any legal liability arising on the policyholder can be managed using a third-party cover. While the policy offers limited coverage, it is necessary insurance coverage and thus, cannot be skipped. *
- Opting for a comprehensive insurance plan
Using a comprehensive insurance policy ensures protection for the damages to your car too. During an accident, it isn’t only a third-party vehicle that is damaged. It is your car too. So, buying a comprehensive insurance plan helps to include the different damages to your car that may require repairs. Apart from protection for own damages, a comprehensive plan also includes protection against theft of your vehicle, natural and man-made events that may cause damages. Thus, a comprehensive plan offers a wider insurance cover. While own damage is a part of a comprehensive insurance plan, it also includes third-party cover. Thus, with a comprehensive policy, you can ensure legal compliance as well as financial protection for expensive repairs to your car. *
- Choosing appropriate add-ons
Add-ons in comprehensive plans are optional policy features that can be purchased. These covers increase the policy cover significantly and hence, must be purchased to enhance the policy’s scope. Since add-ons are optional in nature, buying them impacts car insurance prices. Thus, you can make a smart choice of add-ons by buying only those that add value to your car insurance coverage. *
- Not skipping personal accident cover
A personal accident cover ensures coverage for the policyholder due to injuries or disability due to an accident. By default, such a personal accident plan only covers the owner-driver, but can also be enhanced to include co-passengers in your car. *
- Opting for voluntary deductibles
While the above features help decide the insurance coverage, the voluntary deductible helps keep the premiums in check. A deductible is a clause where you, the policyholder, agree to pay for a specified amount before the insurance company’s compensation. These deductibles are of two types—compulsory and voluntary. The compulsory deductible is applicable for all plans while the voluntary can be opted in addition to the compulsory one. Since there is an out-of-pocket expense when you choose to go for voluntary deductibles, it does help to keep your premium in check. *
* Standard T&C Apply
These points are some of them that will help you select a suitable policy. To summarize, a third party car insurance is the bare minimum insurance cover but opting for a comprehensive cover helps avail a 360-degree coverage. 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.