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Understanding Your Car Policy: What You Need to Know Before Hitting the Road

July 31, 2024 06:01 PM

Getting a brand-new car is a dream come true for most people. After purchasing a vehicle for yourself and your family, buying a good insurance policy is the first critical and mandatory step. You might spend significant time researching and identifying the best policies based on your needs. Understanding the small nuances of what you are looking for can be the first step. 

5 Things to Know

Buying insurance for your four-wheeler will consist of several aspects. Here is what you need to know, especially as a first-time vehicle insurance purchaser, so you do not overlook any details.

       1. Types of car insurance plans – Two major car insurance policy types are available in India. Your insurance provider will offer you details regarding each.

-       Third-party insurance – This is the basic and compulsory vehicle insurance as per the regulations set by the government. This is helpful if a third-party vehicle or person suffers damage or injuries.

-       Comprehensive Insurance – As the name suggests, this type of insurance policy is pretty holistic in providing layers of coverage. Along with third-party liability, this policy covers any damage to your vehicle. 

      2. Factors affecting the premium – It is vital to recognize the factors affecting the premium amount of your insurance policy. It will help you reduce insurance costs.

-       Driving record – A cleaner record will result in lower premiums, while a history of accidents might increase the amount.

-       Vehicle type – The make, model, and year will affect the overall amount. It depends on personal preference; however, owners of expensive cars usually opt for a better policy with a higher premium. The premium for older cars might depreciate over time.

-       Location – Urban areas tend to witness more accidents due to a higher traffic density. Similarly, some cities may have more incidents of theft. It will affect the overall policy coverage and price.

       3.. Claim process – Before narrowing down a plan, ensure that you are well aware of the final claims process. In case of an emergency, it is always better to save time and act fast. Choose a policy that will provide online services. It reduces the risk of skimming through documents in times of hassle. Familiarise yourself with the process to avoid any unwanted surprises while filing a claim.

       4. Add-ons – You can tailor-make your car policy to cater to your needs by opting for add-ons. These factors can help you fulfil your insurance needs by providing a more enhanced coverage scheme. Examples of add-on benefits are – roadside assistance cover, engine protection cover, zero depreciation cover, etc. Read about the options to avail yourself of the most beneficial additions. 

       5. Fine print – Lastly, you should always read the fine print along with the terms and conditions before making an important purchase. Many details can be missed, which can eventually lead to a costlier compensation from your end. Prevent any hassles by knowing the coverage limits associated with your car insurance. Each policy also has exclusions. These are specific situations that are not covered by the insurance. It helps to keep those in mind while you file for a claim.

Insurer Details

Buying insurance is a huge deal. You would want to know all the relevant and essential details regarding your insurance provider to avail yourself of a hassle-free claim. What you are looking for is a company that is trusted and receives good feedback from most of its customers. Another factor that should be considered is the helplines and customer service. 24/7 assistance can be of great help when you are in need. To ease the process further, choose an insurer that can help you file claims online. 

Conclusion

Choose adequate and holistic protection for your beloved four-wheelers by making an informed decision regarding the type of insurance policy. Knowing the smaller details can help you understand the factors that play a role in this decision. Drive in peace with the comfort that your car is secure even in unforeseen circumstances.

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