Getting the Right Car Insurance

Choosing the right car can make all the difference in your satisfaction as a customer and a driver. But choosing the right insurance policy is also equally important. In India, it is mandatory to have a third party liability policy. This is simply because in many accident cases, the person at fault may not have the means to pay for the damages and injuries. Therefore, the government made it a legal compulsion to have an insurance policy to at least cover third party expenses. But in an accident, paying for own damages can cost a lot. This can have serious repercussions on one’s finances. But an appropriate policy can help cover these costs. Let’s take a look the policies available in the market and what are the best options.

Third Party Liability Policies

These plans are offered by all insurance companies and provide cover only for the expenses incurred by the third party involved in the accident. Under the Motor Vehicles Act, this insurance is mandatory for all car owners. You cannot legally drive on Indian roads without this insurance. The downside of these insurance policies is that no expense incurred on damages to your own vehicle and injuries to yourself will be covered.

Comprehensive Cover

These plans are more beneficial compared to third-party plans. If one can afford the premiums on these plans, this is a more advisable option. The plan will cover financial losses incurred towards third party damages along with own damages and injuries. In case of theft, the plan will ensure you are compensated. You will also receive protection on financial losses against damages incurred on your vehicle due to manmade disasters and natural calamities. Car owners can also opt to enhance their cover with add-on options at an extra premium.

Things to keep in mind

• Premium calculators are available online to see the maximum coverage you can get for the premium you are willing to pay. Premiums on diesel cars are higher than petrol cars.

• Taking measures to add security to your vehicle, such as having autocop installed, CCTV cameras on your premises, parking your car inside the premises rather than on the road, and so on will reduce your premiums.

• Living in a safe area, areas that are not prone to earthquakes and floods will also contribute to a lower premium.

• The model and variant of the car you own will also make a difference in your premiums. A car that has safety features such as ABS, airbags, hill hold control and so on are preferred.

• Add on covers can enhance your protection at a small premium. You can get roadside assistance, no claim bonus protection and zero depreciation.

• Buying an insurance policy from an agent can be beneficial if the agent is good and gives you the best options in the market.

• Purchasing a policy online can fetch you discounts and other benefits.

• Insurance policies are also available at most dealerships. Don’t blindly accept a policy that is given to you.

• Read the offer document carefully and ensure the coverage is suitable.