A very well-explored car insurance policy can benefit the policy holder in various ways. For owning a car, it is mandatory to have an active car insurance policy. Today, many insurance providers across the country offers many added benefits along with the policy you buy. Nowadays, when it comes to buying a new car insurance policy, many people take a hurried decision. They end up buying a car insurance policy that serves the legal aspects as stipulated by the motor vehicle insurance laws, but fails to provide reasonable benefits to them. That is why insurance experts and companies, like Bharti AXA, emphasize on the importance of due diligence before taking a call on a motor insurance policy.Insurance experts advise on choosing a policy that is both suitable as per one’s needs and yet affordable.
Given below are five important things you must know about while purchasing a car insurance policy:
Car insurance policies can be broadly categorized into two types:
1) Basic/ Third party car insurance policy
2) Comprehensive car Insurance policy
A third-party car insurance policy only covers damages to others in case the policy holder meets with a car accident.
Comprehensive policies, provide more protection – to the policy holder as well as others involved in the accident – and therefore cost more.
- Premium vs Insured Value (IV):
IDV or insured value is the total sum that the insurer is liable to pay in case of eligible claims. Premium is the amount paid by the insured to the insurance company as a contract of insurance.
- Add-on features:
Many insurance providers today provide special facilities. Breakdown assistance is one of them, where the insurance policy also provides a helpline and roadside assistance. Some insurance companies also offer assistance in case of loss of car key. For an individual open to spending more than minimum on a motor insurance policy, making a list of desired features before zeroing down on an insurer is advisable. Other features may include personal accident cover, for the family of the policy holder in the event of disability or death, natural calamity cover, in case of damage caused by natural calamities such as storm, earthquake, landslide, etc.
This is the portion of damages payable by the car insurance policy holder. A higher deductible means the insurer will pay a larger amount of damages in case of an accident. A higher deductible also leads to a lower premium.
- No claim bonus (NCB):
No Claim Bonus is the benefit that a car insurance policy holder gets, generally in the form of discount in the annual premium payable, for not filing any claims during a year. Before buying a car insurance policy, youshould learn about the NCB in order to be able to make the best decision should the need for a claim arise in a year.