Car insurance is a legal requirement, and hence, as a car owner, you must compulsorily be covered by it. Selecting a policy among the plethora of insurance plans is often regarded as a confusing purchase by most buyers. This is primarily due to the different jargons that are used in describing the policies. Before you finalise on any insurance cover, it is essential to acquire an in-depth knowledge of it. It not only helps clear important insurance concepts but can also help you make a smart decision on your car insurance
Here are some of the questions that you must ask yourself so that you have the right policy based on your needs and requirements:
- What should I expect out of my car insurance policy?
When buying car insurance, it is essential to know what to expect from your insurance plan. You should not buy only for legal compliance as it may be counterproductive when you need it the most. Instead, you can buy a plan that provides coverage for repairs. This will ensure your policy provides protection when you need insurance coverage. Ignoring it and choosing a policy with the lowest premium will result in you ending up with a plan that has inadequacies. *
- What is excluded from the policy’s scope?
As critical it is to be informed of what is covered by your car insurance plan, it is equally important to know what isn’t. This can help you understand what events are outside the purview of the insurance company’s coverage. This way, you can be prepared for those situations where the scope of your policy ends. Further, you must also be aware of the general exclusions that even a standard comprehensive cover excludes, which are as follows:
- Damages from routine wear and tear.
- Mechanical issues or electrical faults.
- Depreciation element of your vehicle.
- Damages due to driving the car in an intoxicated state or when the driver does not possess a valid driving licence.
- Any other specific exclusions mentioned in the policy.
* Standard T&C Apply
- How much will the car insurance cost?
The pricing of your car insurance policy is not based on one factor but a combination of many factors at once. For starters, the type of policy — third party car insurance
or comprehensive car insurance — have a significant impact on the premium calculation. Next, the insured declared value, model and make of the car, registration date, and location of registration are some factors that impact the price of your policy. Lastly, any add-ons selected in your comprehensive policy will further increase the premiums. *
- Should I opt for deductibles to lower the premiums?
Deductibles are a part of the insurance terms that require you, the policyholder, to pay for the repairs and only after, are compensated for by the insurance company. While every policy has a mandatory deductible which is a nominal amount, you can also opt for voluntary deductibles. This deductible is over and above the mandatory deductible and hence further lowers the premium but requires you to shoulder a higher out-of-pocket expense during a claim. Depending on your ability to pay for a claim, you can decide to opt for the voluntary deductible or not. *
* Standard T&C Apply
While these are some critical questions to address before you pay the premiums, you can also take help of a car insurance calculator
to decide which policy is right for you. The tool not only helps compare premiums of different plans, but also the underlying features, helping you make a smart choice of insurance policy. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.