The same effort is required to select the right car insurance as choosing the car. The market research begins months before the purchase of a car and the buyer test drives nearly all cars within his budget. However, enthusiasm for buying insurance for such a high-priced vehicle drops dramatically. Indians still view car insurance as a statutory obligation. They settle for the cheapest insurance policies or choose popular names to get insurance coverage.
Comparing car plans can help you save money and get better features. It is important to compare at least three plans when you are looking for car insurance. In this instance, the more the merrier principle holds. It is always a good idea to invite quotes from many companies, as it allows you to find the best deal.
Comprehensive car insurance covers both the damage to the owner and the damages to third parties that are injured in a collision. It is a mistake to get only third-party insurance if your car is brand new. This is because the repair costs for accidents can be very high. When choosing a comprehensive car insurance plan, one should also consider adding on to the regular OD (own damages) section. These are the most important add-ons:
* Depreciation Rembursement: This add-on waives the depreciation of parts that need to be replaced due to damage.
* Return To Invoice: The insurer pays the difference between the admissible claim and the sale price of the vehicle, or the new replacement value of the exact make and model.
* No-Claim Bonus Protection A NCB of more than 25% can be earned on a new vehicle, or by making no claims for the past two years. This add-on protects the NCB if there is no more than one claim per year and the policy is renewed within 90 days.
* Glass, Rubber, Fiber, & Plastic Parts: The NCB will not be affected if a claim is made to repair or replace the glass, rubber, fiber, and plastic parts.
* Hotel Expenses and Emergency Transport : If the vehicle is unusable, the cost of accommodation at the nearest hotel and return home expenses can be up to 50% of the insured sum or Rs. This add-on covers a maximum of 50,000 or less.
* Personal Belongings: Coverage for personal property that is lost in an accident-related vehicle.
* Replacement: The cost of replacing lost keys to a vehicle is permitted.
* Daily Allowance – In cases where damage is caused by an insured peril and the vehicle requires more than three days to be repaired, the insurance would pay an allowance for hire transport for up to 10 days for normal damages or up to 15 days for total losses. Depending on the vehicle’s category, the daily allowance can range from Rs.600 up to Rs.2000.
* Engine Protection: Insures damage to internal parts of engine from water ingress/leakage lubricating oils and/or damage to gearbox as a result an accident.
* Road Side Assistance or Spot Assistance : This coverage provides emergency services for vehicle owners who use their vehicle daily. These emergencies are not caused by an accident.
Depending on the vehicle’s type and usage, one can decide which add-ons should be included in one’s car policy.
Research shows that online comparisons of car plans can save you up to 30% on your premium. Online car insurance plans are typically cheaper than their offline counterparts, as there is no agent commission. This reduces the premium significantly.
