Indian car buyers are still not much certain about car insurance and it’s still one of those things that someone buys just because the rules ask you to. Most of the car insurances are purchased at car dealerships itself simply because people are not very well aware of the car insurance terms and facts.
Car insurance protects any person who might be driving the car and any third party person or property involved in an accident and provides covers for damages occurred. There are various factors that decide your car insurance premium and your insurance premium terms decide the scope of coverage you get in case of any damage or accident which may or may not involve any third person or property.
One should try to optimize the terms, especially when buying the car insurance online, in a way to get most coverage and protection at the need of the hour. Good car insurance can save a lot of trouble during accidents. Here are the top ten things that are still unknown to buyers:
- Most standard car insurance policies will cover about seventy percent of the damage cover and you will need to pay the remaining amount from your pocket. Also, they might not cover costs of plastic and rubber parts of your car, means more burden to your own pocket. Make sure you opt for most protection in case of an accident.
- Third party insurance is mandatory as per Indian Motor Act and regulations. This will cover any third person or property involved at the time of accident but provides no claim to damages to car or person driving it. Third party insurance policies are cheapest options for car insurances.
- Your driving history can play a role in your car premium. If you don’t claim any insurance coverage during the year, then your next renewed policy will be much cheaper than the previous one. One can also avail loyalty discounts if renewing from the same provider.
- Apart from accident history, your social and economic status can be a factor for your insurance premium. Having a high CIBIL score can mean you have to pay less for your insurance premiums. Apart from this, bundling all your vehicle insurances with the same provider will provide you better coverage while paying less premium amount.
- Insurance is also mandatory for used vehicles and vehicle ownership should be transferred in any such case. The law also mentions that car insurance should also be transferred in the buyer’s name. It is advisable to buy new car insurance even in case of buying a used vehicle.
- Car insurance has a value for vehicle which is the maximum amount that can be covered at the time of an accident. A lower valuation will mean cheaper car insurance premium. One should make sure that this value is around market value of the vehicle to get a fair premium amount.
- Zero depreciation policies are making its way in Indian car insurance segment. Zero depreciation insurance covers all aspect of damages to the vehicle and you don’t have to pay anything at any stage for possible repairs or replacements. It will cover maximum damages to the vehicle. It might be smart decision to buy such policies in case you own an expensive vehicle.
- One should always declare any kind of modification made to the vehicle to the insurance provider or they might not be liable to pay any claims. Any changes made to engines or body parts must also be reported. Usually, insurance companies can inspect the vehicle in case of any such modifications but this can differ case to case.
- You should take pictures and report to your insurance provider as soon you can in case of any accident. The pictures can be immediate proof of damages and help you in getting claims. Keep in mind that insurance providers will investigate every claim and make sure you are covered for maximum possible benefits.
- Personal coverage should not be avoided at the time of getting insurance provider. You can ask for more personal accidental coverage to drivers and passenger. This should also cover any friend or another person that may be driving your car. Usually, personal coverage is decided with comparison to the valuation of the vehicle.
Keeping yourself aware of these facts will go a long way to help you buy the best insurance policy for your car.