How To Get The Most Out Of Your Car Insurance?

When you own a car, it is mandatory that you have to maintain a befitting car insurance plan. According to the Motor Vehicles Act, of 1988, every Indian vehicle legally plying in the country must possess a valid car insurance plan.

Owning a car is not enough. To ensure optimum utility, you have to secure it properly. A car insurance policy is the most plausible solution in this respect. A third-party insurance plan is mandatory for every vehicle. As the name suggests, this only considers the damages experienced by the third party during any accidental circumstance. On the other hand, a comprehensive insurance plan offers much more extensive and expansive coverage. It considers both the third-party damages and covers the policyholder’s vehicle. 

In the case of comprehensive insurance, you can enhance the coverage span by adding befitting riders to it. Once you purchase any car insurance plan, you must make the most out of it. Optimum utilisation will uncover its true potential and ensure your vehicle's coverage under challenging circumstances. 

This article will highlight certain typical tricks and tactics that will aid in squeezing out the utmost utilisation of your chosen car insurance policy. 

Ideal car plan

An ideal car insurance policy will not only take care of third-party damages and liabilities but also for your vehicle in the case of theft or accident. 

Without fail, you have to insure your car with a third-party plan. However, that will only meet the legal standards and won’t protect your vehicle. Considering the circumstances, you must buy your Own Damage Cover. However, you can get the most out of comprehensive insurance. Moreover, you can further enhance its coverage by adding suitable riders according to your needs. 

Maximising the utility of your car insurance

If you follow these handy tips and tactics, you can ensure to maximise the utility of your existing comprehensive insurance:

Comparative study

Since digitisation, the online platform has become a very strong ground for seeking reliable information regarding several competent car plans. You can easily make a comparative study among different plans offered by different insurance providers, understand and compare the premium amount depending on the coverage, read customer reviews with first-hand knowledge and experience, IRDAI license authenticity, etc. 

Whether you are a first-time policy buyer or renewing your existing plan, don’t stay blindly loyal to only one insurance company. Open up to explore other competent opportunities available to know if you are charged correctly and then proceed. 

Different insurance companies may charge differently for identical coverage spans. So, comparative analysis and research are essential to get the best deal at the most affordable price. 

Opt for digital 

Since digitisation is the signature of the day, it is best to opt for digital insurance companies if possible. All the car insurance-related tasks can be done online easily from your comfort time and zone. It includes plan purchase, plan renewal, claim raise, claim settlement, etc. 

You can even utilise the digital platform for comparative study and utilise the premium calculator to know exactly how much premium you need to pay ideally for your chosen coverage. 

Optimise the IDV

One of the significant determinants of the car policy premium is the IDV. It is the amount that your insurance provider will pay if the concerned vehicle is stolen or damaged beyond repair. It is best to choose the current market price of the vehicle while deciding on the IDV. 

Certain car plans are comparatively cheaper and the sum insured usually remains low. Although you may pay a lower premium, the IDV is decided lower than the market value. This will earn you a lower compensation during theft or extreme damage to the car. Choosing the right IDV is very crucial to avoid such losses. You can even use the digital IDV calculator to determine the ideal amount. 

If 2 identical plans offering the same IDV, charge different premium amounts, you should go for the cheaper one. 

Encash the discounts

Most insurers offer several discounts on various grounds. These discounts can be cash discounts like premium value reduction or offer various coupons that can be utilised on several occasions under specific circumstances. You must always research such discounts before purchasing any plan. 

However, discounts should not be the only determinant in making your policy selection. You simply should not opt for a plan just because it is offering more discounts. All the other more significant determinants like the coverage span, the premium value, etc. must be considered. 

Secure NCB

NCB or No Claim Bonus is the special discount that you receive while not raising any claim during a specific policy tenure. This discount may rise and add up to 50% of the total premium amount. This will help you in optimising your savings without compromising on the coverage span. 

Try to avoid raising claims for minor issues as it will lose you on the NCB front. You should stick to raising claims only for major damages and losses where the repair and recovery costs are highly expensive.  

Add riders for more extensive coverage

A comprehensive policy has been specifically crafted to offer quality financial support in the case of loss or damage to our vehicle, with certain specific exclusions. To cover for such exclusions like key loss, NCB protection, etc. you can add befitting riders to enhance the coverage span. However, you must critically analyse your requirements well before choosing these riders as each rider is charged differently and eventually adds up to the premium payable amount. If you tend to choose several riders, it will turn out to be contributing to unnecessary financial drainage rather than optimising your coverage. Some of the popular riders include Zero Depreciation Cover, Engine Protection Cover, return to Invoice Cover, Roadside Assistance Cover, etc. 

Utilise car insurance premium calculator

The car insurance premium calculator is a reliable online tool to help you determine the exact premium amount you need to pay considering all the relevant and specific details like the make and model of the vehicle, manufacturing year, location, etc. With the help of this calculator, you can easily compare several plans across various costs and benefits, completely done by yourself without any involvement of any agent and easy online purchase.

Read Also

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Conclusion

These are some of the techniques and tips that you need to consider before purchasing any comprehensive car insurance policy. Before deciding on the correct plan for your vehicle, you must consider the NCB, IDV, deductibles, premium amount, claim settlement ratio, claim settlement procedure, customer reviews, etc.

Disclaimer: This is a syndicated feed. The article is not edited by the FPJ editorial team.