Make smart choices by comparing auto insurance policies

Main Points:

  • The renewal of car insurance is essential to ensure any financial loss due to an accident or theft of the car.
  • There are two types of coverage: full policy and third party auto insurance
  • Additional coverage is available, such as zero depreciation, no claim bonus coverage, bill return, consumable coverage and roadside assistance for auto insurance in India
  • It is essential to understand the factors that affect the car insurance calculator.
  • It is important to compare car insurance to be able to take out the right policy

Why buy car insurance?

Even if you are a fantastic driver, you will need auto insurance. Motor liability insurance is mandatory in India and it is illegal to drive a car without a license. You should ideally opt for a comprehensive auto insurance policy to protect your interests. Auto insurance is the best way to secure your car and yourself. Some reasons why you must have car insurance:

Accident

We often see that you have an accident due to the fault of others that damages the car. Regardless of the cause, the costs of repairing cars increase exponentially and the purchase of insurance will cover you against these expenses.

Third Party Liability

In the event of an accident where you cause damage to a life or property to a third party, liability insurance will help you to compensate. This will protect you from the legal consequences.

Natural disasters

Your car insurance policy will protect you against any loss resulting from a natural disaster that has damaged your vehicle.

Theft

In case of theft, your car insurance policy will cover you against the loss.

Cover Type:

Secara umum, ada dua jenis cakupan asuransi mobil yang tersedia di India

Third Party Liability Coverage

This offsets any loss caused by damage to property or lives of others. Although this is not the best thing to do, this coverage is for people who take out insurance, according to the Motor Vehicle Act. Under this cover, no loss for the insured or the car is payable.

Full coverage

This insurance provides better coverage to the third party and the insured. Liability coverage is available in this context. Damage to the car in case of theft, accident, fire or natural disaster is also covered. By opting for full coverage, the insured also has the choice to opt for additional coverages.

Add on Covers

Zero Depreciation Cover:

Under this cover, no impairment is calculated at the time of the loss. This saves money that should be paid by the insured for the repair of cars.

No claim bonus protection

With this coverage, the insured can benefit from the reduction. He can get a no-claims bonus on his policy even though he has filed a claim.

Return to Invoice

With this coverage in the event of total loss, the insured’s total declared value is returned to the insured.

Roadside Assistance

This cover allows assistance in case of emergency leading to the insured person’s grounding. Coverage provides various types of assistance, such as a towing facility and a taxi benefit, in a variety of situations.

Factors affecting the premium

Registration City

Premiums are influenced by the city where the car is registered. People who own a car in a metropolitan city have to pay more premiums than in smaller cities. Indeed, the risks of theft and accidents are higher in the first case.

Model and Make

The make and model of a car and the risks associated with it affect the premium of car insurance. The older the car, the lower the premium due to depreciation. Powerful, high-end cars attract a higher premium.

No Claim Bonus

If the insured has not made any claims during the policy year, he is entitled to a rebate at the time of renewal, which is a bonus.

Insurance Cover

The policy and additional coverages determine the premium payable. The extra blankets make the policy more expensive.

Why Compare Car Insurance?

Comparing auto insurance policies online from different companies is the best way to buy the right policy. The comparison is made on the basis of the declared insured value, additional coverages, discounts, deductibles and of course the premium, in addition to certain other parameters. The main advantages of online comparison are:

Convenience

Many companies in the market offer auto insurance, but accepting quotes from all is a difficult task. When comparing online, the insured can easily get all the quotes at his home with a click of the mouse. When all quotes are available in one place, it’s easier to compare and make the right choice.

Clarity

When all the policies are available for comparison purposes, the insured can know the right price and the best coverage available. The exclusions and deductibles of a contract may also vary from one insurer to another and, with all the details available at the same place, the decision making becomes simpler.

Fine Print

When comparing online, the insured has access to a wealth of information that enables them to understand the fine print of the font. A complete understanding of the product is very helpful at the time of a claim.

No Hidden Clauses

When you compare and buy the online policy, transparency is total. The insured has all the details and also has access to notices to make an informed choice.

Important Factors to Note:

Value declared insured

Having a low IDV can reduce the premium but reduce the coverage. Thus, an optimal IDV value is ideal, which is closer to the market value of the car.

No Claim Bonus

NCB means a discount on the premium. To benefit from the reduction, a bad NCB must not be given as this may result in the rejection of the request.

Things to Consider When Comparing

When comparing insurance online, one of the main factors to consider is the premium. But a font with the lowest premium is not always the best, as it may result in less coverage. Also check out the factors below:

Policy Excess

You should not go for a high excess because it is the amount you will have to spend at the time of the loss. A slight excess could increase the premium. When comparing a policy, it is important to look at the voluntary surplus.

Additional Covers

With a standard auto insurance policy, many cyclists are available. When comparing policies, it is necessary to compare the hedges proposed by each company and their impact on premiums.

Facilities without cash

Another important criterion is the garage network for each company where a cashless facility can be used. In most cases, it is easier to settle a cashless claim than to take a refund later.

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