While the cab vs car debate will go on forever, we know that driving a car in India is something that lakhs of people indulge in every day. With higher disposable income most households are able to afford this convenience which is no longer a luxury. It increases one’s mobility and eliminates dependence on public transport and Car Insurance Policy.
However, driving in India also comes with its own threats. Cases of road accidents, traffic indiscipline and lack of legal enforcement by road authorities are reported commonly in the newspapers. Considering these factors, it is important to get car insurance right after one buys a car.
Why Long-term Comprehensive Car Insurance Policy?
While the Indian law makes it compulsory to buy a third-party insurance, it is recommended to opt for long-term comprehensive car insurance policy. Low premium costs are the sole deciding factor while buying a car insurance for most people.
Third-party car insurance only provides coverage to the insured vehicle in case of any liability claim that may arise for causing bodily injury, property damage or demise of the third party. However, Long-term comprehensive policy, in addition to coverage to third party losses, also helps you pay for damages done to your car in non-collision accidents. These can include damage due to natural disasters, vandalism, riot and strikes and theft.
If you are ready to buy or research a long-term comprehensive insurance plan we have a list to assist you in your decision-making process.
- Risk Exposure: Before opting for an insurance plan it is best to check how much risk you might be exposed to. For example, if your locality is flood-prone, or if there have been instances of car theft lately in the neighborhood. Are you someone who likes to take their car for a long trip on every possible weekend? If you drive around a lot, is it likely that your car is not parked in the garage most of the time? In these cases, your car is exposed to more risks and you should choose for adequate coverage.
- Add-ons- After you analyze your risk exposure you can choose appropriate Add-on covers. For example, if you live in a flood-prone area, you might want to avail the Hydro Static Add-on or opt for a Zero Depreciation Add-on and your insurance provider will not deduct your car’s depreciation while settling the claim.
- Ownership: Opt for a long-term comprehensive motor insurance policy if you plan to keep the car for more than three years or have a brand new car that you do not plan to sell. For example, you purchase a long-term comprehensive car insurance policy for five-years. Now, in case you have to sell the car in a year, you will be required to transfer your car insurance policy to the new owner of the car. The money you have paid will not be fruitful.
- Credibility of the Insurer: You want your settlement process to be smooth and hassle free. The insurer should stand by you in tough times. So, it is always recommended to do a basic research before purchasing the policy about the credibility of the company. You can check reviews online or talk to your friends, family and colleagues.
- Compare different policies: Selecting the right insurance for you out of the plethora of options available both offline and online, can be a tedious task. You should take your time to research and select the policy according to your car, location, what is covered and what is not.
Now that you are aware of things to consider before purchasing a long-term comprehensive car insurance, make an informed decision and purchase a well-suited plan. Do not fall for mere gimmicks and have peace of mind with the right policy. To buy a car insurance plan CLICK HERE.