Car insurance is mandatory in India. And yet, there are still many cars that carry fake insurance papers just for the sake of having them. Hence, when it comes to claiming compensation in case of an eventuality, these car users fail to get the adequate compensation amount. Even the car users who purchase motor insurance generally are not in complete control of their policy. The first policy is generally bought from the car dealers and the buyers hardly go through the same. The tougher part is when they initiate the car insurance plan renewal process.
Let’s look at a few important factors every car owner must keep in mind while renewing their car insurance policy.
Which Car Insurance Plan is needed?
This is the first step of any car insurance policy renewal. The car owner needs to understand whether he/she needs a
Standalone 3rd Party Liability Insurance – Covers damages caused to another vehicle by the insured vehicle. It also covers damages or loss caused to a third party individual or property due to the insured vehicle or,
Comprehensive Car Insurance Policy – Covers both self as well as the 3rd party against damage. This policy is costlier than a third party liability insurance as it provides protection against a wider range of unforeseen events.
Are there any add-ons?
This is what every policy holder should keep in mind right after choosing the car insurance policy that best suits his / her needs. Some car insurance renewal plans offer additional benefits along with the core offers. A few of the additional benefits generally offered by premium policy holders are
Nil depreciation cover – This plan has complete coverage for car insurance in case of accidents. It leaves out the depreciation factor and offers 100% coverage to fiber, rubber and metal parts. This is generally beneficial to people who own luxury cars, are inexperienced drivers or live in an accident-prone area. It generally costs 15-20% of the standard premium. Car owners who have a relatively new car [under 5 years old] must choose this coverage.
Hydrostatic cover – This coverage is important considering Indian roads, especially during monsoons. This additional benefit covers issues like damage of cylinder walls, piston and engine caused due to hydrostatic lock. This kind of issue generally occurs when the roads are flooded with water.
Roadside Assistance Cover – This cover helps you in case you are stranded in a remote location due to a flat tyre, battery issues or an empty fuel tank. The insurance company will also provide accommodation assistance [if applicable and required]
NCB Protection Cover – This cover, as the name suggests, reduces the slab for NCB discount on premium. In simpler terms, a NCB protection will not let your NCB discount go to zero in the event of a claim
Is there Cashless damage repair?
A car owner should choose a car insurance policy which offers cashless car repairing services. Insurance companies generally have tie-ups with garages and if the car is repaired at one of the affiliated garages, cashless repairing services are provided.
So, a car owner should go through the complete list of garages with whom the insurance company has tie-ups with and then choose the one which offers services at the locations they visit the most. This is an important point people should check when they renew car insurance plans because it is easy to settle cashless claims than reimbursements.
What is the Insured Declared Value [IDV]?
This is the basic amount which the car insurance company pays in a particular year if the car gets stolen / damaged. This amount is fixed on the current year’s market value of the car.
These tips might help car owners make the right choice. It is advisable that car insurance plan renewals be done only after comparing quotes from several companies. You should be smart about this process in order to stay fully covered and protected!