Getting a car insurance policy for your car can be an intimidating thing if it is your first time. You need to undertake thorough research since the terms and conditions of the car insurance policy differ from one insurance provider to the other. There are chances of you getting lost in the sea of information if you are not clear with what you want. To avoid this, it is important to assess your situation before you make the final decision. This article will help you know some important steps and things you should look out for when you are choosing your insurance policy.
Types of car insurance available
There are 2 types of car insurance policy you can choose from- Third-party insurance and Comprehensive insurance. Third-party insurance is the basic insurance policy that covers liabilities that arise against third parties while comprehensive insurance covers all kinds of damages including own damage due to natural calamities, theft etc. You are provided with overall protection.
Under a comprehensive insurance policy, you are provided with a choice to select add-on features that give you extra protection in certain situations. These add-ons cost extra over your premium amount which is why you need to be careful while selecting them. Make sure that you understand the clauses of the add-ons before you choose them.
Set the IDV wisely
Insured Declared Value is the amount you declare as the deductible amount that you are liable to pay at the time of filing for a claim. For example if your claim amount is Rs 20,000 and your IDV is Rs 10,000 then the insurance provider is liable to reimburse you upto Rs 10,000 only. Higher IDV reduces the premium payable but it also reduces that claim you will receive. Hence, you should set an affordable amount as the IDV.
With cashless claims, you do not have to pay for expenses out of your pocket and get reimbursed later. For example, if you get your car repaired for Rs 30,000, with a valid insurance policy, documents and claim, the insurance provider will directly pay for the repair. This is also subjected to various clauses, one of which is that the repair shop should be in the network of the insurance provider. Cashless claims ease up the claim filing process and make it less stressful.
It is important to know what certain technical jargons mean, in order to make an informed decision. You should not buy a policy without understanding the terms and conditions as they might lead to your claim getting declined when the time comes. You should ask your provider for clarification in case you have any doubts regarding the policy.
These are the five important things you should know about before you buy a car insurance policy for your car. Car insurance enables you to drive your car without worry about the potential risks on the road. To know more about car insurance, click here!