A car insurance policy is necessary for car ownersThe Motor Vehicles Act mandates a third party car insurance policy for all cars in IndiaHence, most car owners opt for a third-party liability cover only if they are looking for cheap car insurance in India.
However, these plans do not offer protection against damages to the policyholder’s carAs a result, people looking for complete protection tend to opt for comprehensive plansBut just choosing between third-party liability and comprehensive covers is not enough.
There are various inclusions, exclusions, exceptions, and other terms that need to be finalised before buying insurance for a carThis article will highlight some important questions that you must ask before you buy insurance online for a car in India.
Table of Contents
What Do I Need From My Car Insurance Policy?
Before you buy car insurance online, it is important to understand that the policy and add-on covers determine the coverage you getSince every car owner is unique and has a specific use of the car, the insurance policy must be tailored to meet the requirementsThis ensures that you don’t face any hassle while raising a claim.
For example, if a car owner travels often, you might want to include an add-on personal accident cover for passengersAlso, if you are a new driver and tend to have minor mishaps regularly, raise claims, and get them settled, then you might want to include the NCB Protection add-on to help you avoid losing the accumulated No Claims Bonus.
What are the Inclusions And Exclusions?
The purpose of insurance for the car is to offer financial protection against losses arising from damages caused due to accidents, mishaps, or various other reasonsTherefore, when you buy insurance online for cars and compare premiums, you might skip the inclusions and exclusions partThis is important since it impacts the terms under which your claim will be accepted or rejected.
Make sure that you are aware of the sameSome common exclusions that tend to catch car owners unawares are:
- Damages due to the wear and tear of the car
- Manufacturing defects
- Electrical or mechanical issues with the car
- If damages occur while driving under the influence of alcohol or any other intoxicant
- If damages occur while driving without a valid driving license, etc.
What is the Cost of the Insurance Policy?
When you buy insurance for a car, you pay a premiumThis is a dynamic number that varies based on a range of factors like the type of insurance, the make and model of the car, the current market price of the car, the choice of add-on covers, etcThe factors affect the quote for car insuranceWhile most insurers offer an online car insurance calculator to help you assess the cost of buying the car insurance policy, it is important to use it to choose deductibles or add features to your car to make the premium more affordable.
Should I Opt for the Voluntary Deductible in Car Insurance?
When you buy car insurance online, you will come across deductiblesThere will be two types of deductibles mentioned – compulsory and voluntaryA deductible is an amount that is paid by the policyholder at the time of the claim while the insurer pays the restFor example, if the deductible is 10% and your claim amount is ₹10,000, then you will have to pay ₹1000 while filing a claim, and the insurer will pay ₹9000.
A compulsory deductible is determined by the insurerAs the name suggests, this is mandatory, and the policyholder has no option but to pay it.
A voluntary deductible, on the other hand, is an optionYou can choose a percentage of the claim amount that you will bear as a voluntary deductible.
Since this brings down the liability on the insurer, they offer a discount on the premium amountSo, unless you are prone to accidents and mishaps, a voluntary deductible can help reduce your premium.
How Do I Choose the Add-Ons for My Car Insurance Policy?
This is a question that you need to think about based on your needsThere are many options available like a zero depreciation cover, no claim bonus protection cover, personal accident cover for passengers, roadside assistance cover, consumables cover, etcBefore choosing the add-ons, make sure that you assess your insurance needs based on the use of your car as the add-ons increase the insurance price on cars.
Summing Up
Remember, buying a car insurance policy is mandatory in IndiaWhile the rule is about third-party liability only, it is recommended to purchase a comprehensive plan to protect yourself against losses to your vehicle in the event of an accident or mishapThere are various types of car insurance policies and add-ons available that can help you tailor the policy according to your needsMake sure that you consider all aspects and get your car the best protection it deserves.