Accidents occur when you least expect them. For instance, you are leisurely driving on an empty road after a fancy dinner at your favourite pizza place and boom! A young learning driver rear-ends your car. This is when you remember about your four-wheeler insurance policy.
While if the situation is reversed – any legal liability that is due to another person is covered by a third-party car insurance policy, but what about the damage to your car? This is where comprehensive policy steps in. Comprehensive four wheeler insurance policy not only covers third-party policy coverage, but also includes additional benefits like cover for own-damage along with personal accident cover. Also, these comprehensive plans can be customised to your liking with the help of add-ons. This article enlists some key factors that you must remember when buying a comprehensive car insurance policy. Let’s have a look –
Exposure to risk
Start with estimating the risk that is faced by your car. Depending on situations where and when you drive your car, the risk exposure can be estimated. Say, you are buying a car that is majority times used in city commute to navigate through bumper to bumper traffic. There are seemingly high chances of damage to your vehicle even without your fault. Thus, at such times, a comprehensive policy makes more sense than third-party insurance plan. Further considering the parking situation at your residence or place of work, traffic situation in your city are some additional considerations that can help you make a better estimate to determine the risk exposure to your car.
Add-on covers
Add-ons are additional features that are available as optional when buying car insurance. These add-ons can significantly enhance the scope of your car insurance policy and thus must be carefully considered at the time of purchase or car insurance renewal online. A combined evaluation of the risk exposure for your car and the suitable add-ons can aid in the long run. Further, remember buying unnecessary add-ons does no benefit and contributes to increase premiums. Thus, with the help of car insurance premium calculator, you can estimate how much premium will be impacted if you add or remove a specific add-on.
Deductibles
Deductible is something that every policyholder needs to pay when raising a claim. It is mandatory clause specified by the regulator, Insurance Regulatory and Development Authority of India (IRDAI). There are essentially two types of deductibles, one compulsory and other voluntary. As the name suggests, compulsory deductible forms part of all insurance plans whereas voluntary deductible can be opted for. With a voluntary deductible as a part of your policy, it may increase the amount you are required to pay from your pocket at the time of claim. So, read the terms thoroughly to know about it. However, the positive side to voluntary deductible is that it reduces your premium at present. Thus, make a wise choice among the two.
Insurance company
Lastly do check the reputation of the insurance company. Make sure to check for testimonials or feedback on forums to know about the insurance company’s way of working and managing claims and other processes. This can help to know all the positives as well as negative about the insurer.
These are some of the things to keep in mind when buying a comprehensive car insurance policy. Apart from the policy features, make sure to compare the above points and base your decision upon it. 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.
