Three effective ways for purchasing car insurance

Three effective ways for purchasing car insurance

Purchasing automobile insurance policy or having timely car insurance renewal is a mandatory under Indian Motor Tariff Act. However, before trying to purchase automobile insurance, there is a need for the individual to ensure the following:

  • Understand the coverage requirements
  • Understand liability if a claim is to be filed
  • Perform online comparison for ensuring to derive the best deal

The coverage requirements

It is necessary for the individual to know as to what can be expected from the automobile insurance coverage and as to which of them is likely to fit the coverage requirements. 

Basic automobile insurance is likely to provide the following coverage against risks such as the following:

  • Damage to any other person / third party property or own car during an accident
  • Theft of the car
  • Damage to the car due to man-made calamities such as riots, because of malicious act or terrorism.
  • Damage or loss to vehicle because of natural calamities such as explosion, earthquake, lightning, fire, etc. 
  • Personal accident coverage that is required to offer fixed amount to driver of car if the accident leads to disability or death.

Besides the basic insurance coverage provided, if the individual is trying to look for further protection of his car, then he can easily opt for riders such as:

  • Zero depreciation coverage: It allows the person to get full reimbursement of all expenses, having damaged parts to be replaced without deduction on depreciation.
  • Extend personal accident coverage to co-passengers: Personal accident coverage that covers normally just the driver could be extended towards including co-passengers.
  • Spare car cover: The spare car coverage is likely to allow the person to avail daily cash benefit or reimbursement for covering cost of hiring alternative transport mode.

Liability of the individual on filing a claim

The individual’s personal liability is likely to depend upon the type of insurance coverage that is purchased. Basically, there are about four things which are likely to influence the liability of the individual while filing a claim.

  • Deductible

On filing for claim, there is a need to pay specific minimum amount by insured and it completely depends upon the vehicle that is owned. Going through the website of the provider is sure to help the car owner to understand the type of deductibles and premium amount that needs to be paid.

  • Voluntary deductible

There are some people who are quite confident in regards to their driving skill, intending to have the insurance premium to be kept low. In such a case, they are to opt for voluntary deductible. It is regarded to be in excess of compulsory deductible which is agreed by the insured to pay as he files for claims.

  • No claim Bonus

During the filing of a claim, there is a need for the individual to ensure that the amount that is being looked forwards to claim is quite big since no hidden costs are attached towards filing a claim. Here, the hidden cost is just the No Claim Bonus.

  • Depreciation value

Here, insurer pays for the parts’ current market value that is calculated by having deprecation on the parts to be calculated upon. The insured is required to pay difference between the part’s depreciated value and replacement value.

Online comparison for the best deal

One should do online comparison of the various types of automobile insurances provided by the different companies so as to avail the best deal. 

Author’s Bio: The author is freelancing with reliancegeneral. He writes various types of articles for his client.

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