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Insurance is something that doesn’t come like magic. Anyone interested to have an insurance policy must go through proper papers and channels. At present, many policies come and go, but you must know the considerations before choosing one. In this blog, we will tell you about how you can go ahead with an insurance policy without any hassle. Make sure you follow all the points diligently.
Points to ponder before giving a nod to an insurance policy
- Third-party insurance
The Indian road safety act and the Indian Motor vehicles act have made availing a third party insurance policy for your car mandatory. This policy protects you against injuries to any person, property, or vehicle. It also provides coverage for claims of injuries, disability or death. The third person can be anyone except the insured and the insurer. No matter you were seating behind or driving the car yourself or had someone else hired for driving when the accident took place, a third party insurance policy will cover any such related claims.
Therefore, before purchasing your first car, ensure to possess valid third party insurance before hitting the street. Generally, third party insurance designates a dealer along with the purchase value of your car determines the amount of premium you have to pay. You cannot, however, ask for a claim for damage made to an individual or car with the help of an insurance company.
- Comprehensive car insurance plan which protects against damages
A comprehensive insurance cover offers protection for injuries caused to you and your car in case of any unforeseen accidents, thefts, fire, etc. This insurance policy is not included under a third party insurance policy and hence should be availed separately.
So, if you contemplate that insurance is going out of your budget, then it always recommended that you bundle your insurance plans for more than 1 car in your home. If you take insurance for the same company in bulk, then you might get good discounts in the lump sum amount.
- Add-on plans with different attributes
Today’s insurance providing companies offer special facilities like breakdown assistance. This means that your insurance company is providing you a helpline and roadside assistance whenever you are in need. Few companies offer assistance in case the car key gets lost. Insurance experts advise all those who are not restricted to a certain budget, to make a list of the features they would like to avail from their insurer and then proceed to choose a suitable insurance providing company.
Other facilities that companies provide these days are personal accident cover, in case of death or injuries caused to the family members of the insured person or policyholder, natural calamity cover, covering charges for damages caused by any natural calamity and zero depreciation cover. If you choose zero depreciation cover, your insurer will pay the entire claim amount without considering the depreciation sum.
- The insured declared value of your asset
The insured declared value is the highest claimable amount under a Car Insurance Policy which means that your insurance premium is dependent on the IDV of your car. It is obvious that a new car will have higher IDV when compared to an old one, meaning that the premium amount that has to be paid for the new car is higher. Insurance experts advise people to choose an insurance policy that will cater to your needs and requirements and simultaneously be affordable. Hence, it is better not to take a hurried decision based on what the insurer is offering instead of assessing your budget, needs, and requirements
- Deductibles
High deductibility indicates a low premium that has to be paid. Deductibles are to be paid by the car owner or the insurance policyholder. The rest of the amount will be paid by the insurance providing company in case of an accident.
The takeaway
With the above points, it’s clear that no insurance policy is free of risks, but it’s beneficial if the right steps are followed. The above-mentioned pointers indicate that you must be careful beforehand. Today every three companies offer insurance, but it’s on your hand, how you choose the best among the rest.
