5 Crucial Factors For Car Insurance Comparison

Buying a car is an exciting experience. It is getting one step closer to the life you have always dreamt. A few years back, what was regarded as a luxury, is now a necessity. With cities expanding leaps and bounds, a car gives you the convenience of commuting. But if you want to maintain your car, there are a few things to note like timely servicing and repairs, regular use of the moving parts and lastly protecting your dream on wheels with insurance. Ultimately, it is your beloved prized possession.

The digital revolution has made it easier to opt for car insurance at the convenience of your home. A few clicks and you have your insurance policy.

But what must one look at when availing a motor insurance plan? Read more to find out –

Types of Insurance

Motor Vehicles (Amendment) Act, 2019 makes it mandatory for every car owner to have at least third party car insurance. On comparing it with a comprehensive cover, it offers lesser coverage. Your insurer covers only third party liabilities, and the insurer will not bear any damage to your car.

On the other hand, comprehensive car insurance will cover damages to your vehicle with the other in case of any mishap. Combining the comprehensive plan with a zero depreciation add-on is one of the better insurance option. It gives the advantage of receiving insurance claims without factoring for the depreciation that otherwise reduces the value of your car.

Coverage of your Policy

When you buy car insurance online, irrespective of a comprehensive or third party car insurance policy, verify the coverage of your plan by going through the policy documents. Various add-ons are available for added benefits that make your driving experience more secure. Some of the popular add-ons that are recommended are zero depreciation or also called as ‘zero dep insurance’ and an engine protection cover.

Age of your Car

The age of your car determines the Insured Declared Value or IDV. It is the value which the insurance company offers in case of theft or loss of your car. This value reduces as your car ages. So, older cars have lower IDV. Some part of your car insurance premium is allocated towards this insured declared value.

Premium Amounts

One of the most critical factors in deciding while buying car insurance is the premiums charged. Like other types of insurance, a car insurance policy requires periodic payments. It can be annual or half-yearly too. Since this is a regular expense to protect your car, make sure this amount is not too high to become a financial burden. Comparing across different car insurance plans will help in equating the benefits against the cost for it.

Exclusions from your Car Insurance

When you buy car insurance, reading the policy documents will give a detailed understanding of the various expenses that will not be covered under your insurance plan. It will help in reducing the possibilities of your claim being rejected. Comparing the different plans as offered by the insurers goes a long way to get the ideal plan that can cover all the necessary expenses as required in repairs.

So whether it’s a first-time purchase or during car insurance renewal, make sure to look at the points mentioned above for some idea on selecting an appropriate insurance cover for your roadster.

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