Tips for finding the right Car Insurance Policy

Even though finding the right car in your budget is a difficult and time taking task, people enjoy doing it. They enjoy putting their effort into learning everything about the features of the cars they’ve shortlisted to buy in order to make sure that they buy nothing but the best. Another thing which is equally if not more important than your car purchase is the car insurance policy purchase. And yes, let’s face it nobody likes to put effort into learning about how to buy the right car insurance policy. the reason is simple, it is straight boring and doesn’t end there only.

Learning the knowhow of insurance policies is then followed by a hunt for the right policy from hundreds if not thousands of different vehicle insurance online and offline from companies like ICICI Lombard and Royal sundaram car insurance. Well, would you like to put some effort into finding the right policy for your car if we would say that we would make your former step way easier? If yes, then stick around as this article contains some useful information which will help you find the right car insurance for you. And Don’t worry, we’ll not be serving you with boring long passages about a car insurance. We’ll try to keep the content simple and interesting so that you can both enjoy and learn at the same time. So, grab a cup of your favorite drink as we are about to get started with this article.

Apologies in advance but you’ve got to learn the basics first

See, we told you that we’ll make the process easier but not a cakewalk. What is important is important and you just can’t simply skip it. In this section, we are going to do a short discussion about the basics of a car insurance policy. So, without any further ado let’s wrap up this section in a hurry.

  • Types coverages provided by a car insurance policy

The first thing to learn is the types of car insurance policies you can buy based upon the coverage i.e. third-party cover and a comprehensive cover. The former insurance provides coverage for damages caused to a third-party you while the latter one provides personal and own vehicle damage coverage. According to the laws of the Indian government, every car has to have a third-party cover but there is no such compulsion for a comprehensive cover. A third party car insurance price tends to be lower than its comprehensive counterpart due to a few reasons. One of the prominent one being that a comprehensive cover comes with a lot of extensions and add-ons that can be bought along with the policy. another reason for a third party car insurance price being lower is that it is a basic car insurance and no personal coverage at all is provided by it.

  • No Claim Bonus

Although a No Claim Bonus might not be of much use to you right now it can be of great help in getting big discounts at the time of car insurance renewal. Basically, a no claim bonus as the name suggests is a reward that you get from your insurer when you don’t make any claims from your policy for a specific period of time. the minimum discount that you get via an NCB is 20@ when you don’t make any claim for a period of one year. if you want to calculate your premiums after you avail a No claim bonus, then a car insurance renewal premium calculator can be used. a car insurance premium renewal calculator is not very different from a car insurance calculator and you will find it very easy to use. lastly, the details about the discounts that you can avail from NCB are mentioned in the table given below:

Time Period Discount Offered
One Year 20%
Two Year 25%
Three Year 35%
Four Year 45%
Five Year 50%
  • Insurance Declared Value

Next up on the list of basics is IDV of your vehicle. IDV or Insurance declared value as you may call it is the value that you get from the insurance company in case of theft or total loss of your car. IDV is set after both the insurer and the policy buyer agrees on it through a discussion. as a policy buyer, you have a control over the fact that you want to keep you IDV higher or lower. but keep in mind that your rate of premium will be affected by the IDV of your car. if you keep your IDV high, your premiums will be high too and a lower IDV will keep your premiums low too.

  • Zero-Dep Cover

if you want to get complete reimbursement for the damage repair of your car throughout the course of your car insurance policy, then a zero-dep cover should be the thing of your interest. And yes, if you were thinking that you will be getting complete reimbursement of the damage repair by default, then my friend you’ve got to reconsider your concepts of car insurance. A zero-dep cover is an add-on that makes you eligible to get 100% reimbursement from your insurer but only for a maximum period of 5 years. Companies like HDFC Ergo and Royal sundaram car insurance have a lot of different zero-dep covers to choose from.

So, we talked quite a bit about the basics, now is the time when we can move to talk about the tips and tricks which will help you select the car insurance policy for your car which comes with enough coverage and fits right into your budget.

Explore as many options as possible

The first most important step in order to find the right car insurance policy for yourself is to never hold yourself back while looking for the options. Believe it, you have to look around for hundreds if not thousands of different policies form companies like Bajaj Allianz and Royal sundaram car insurance. What this will do for you is that you will get know about which company is providing you the policies that are right for your requirements and fit right into your budget. Now the most confusing part of this step is to decide whether to look for the options online or to go with the old school market hunt of right car insurance. Well, we have a separate section dedicated to this debate, so, let’s head to it.

Online vs. Offline car insurance purchase: a never-ending argument

Let’s face it, this is a debate that is never gonna have a proper ending any day soon at least. But to give a short yet useful crux of this discussion, your choice mainly should depend upon how much you already know about a car insurance purchase. If you are familiar with it, then you can easily go vehicle insurance online but without a pre-knowledge, it is going to be a bit difficult task for you. But yes, purchasing vehicle insurance online is definitely going to save you a significant amount of money. The reason is very simple as there is no involvement of an intermediary online while offline, there are several insurance agents involved in the process each of which has to earn a profit from the cost you pay for the policy.

Use Car Insurance Calculators

Car insurance calculators can be of great help for you if you are new in the world of car insurance. From suggesting the right budget, you should have for your policy to suggesting the policies that fit right into your budget, they are very handy and easy to use tools. You can access a car insurance calculator on insurance companies’ websites like royal sundaram car insurance and HDFC Ergo car insurance. The process is very simple you just have to provide information like your income and expenditure and make, price and model of your car and boom, you are good to go, you can find the results right in front of you on your laptop’s screen.

Choose your car wisely

It should not come as a surprise to you that the make and model of your car pretty is the main factor that determines the cost of your car insurance policy. So, keep your budget for the insurance proportional to the value of the car you bought.

Keep a note of your Credit score

Your credit score is also a factor considered by the insurers although not as important as your driving record or your car’s value. A low credit score might get you a lower premium.

Notice your coverage requirement

If this your renewal period, then review your coverage from the previous policy. you might be needing a few more add-ons or it might be the case that you can shave off some of the benefits from your coverage as they are not really something that is useful to you.

Higher Excess; Lower Premium

Keeping your excess can significantly bring down your rate of premium. Although, the overall cost of the policy will remain the same this is something you need to know if you are looking for a way to reduce your premiums.

So, we have reached the end of this article. we hope that you learned something useful today from everything we talked about in this article. now is the easy part, you get to browse the net and find the right car insurance policy for you.