covers your car against risks like theft, accident, explosion etc.
As per the Indian law, you need to have third party insurance cover for your vehicle. Hence, if you own a car, you ought to buy a car insurance policy. However, before you buy any policy, remember to understand the terms and conditions of the Policy and also make a comparison with other policies to arrive at the most appropriate decision.
Be aware that the car insurance is portable, so you are not compelled to renew the policy from the same insurance provider. If another insurance provider is offering better terms and service, you may as well take the insurance from the new provider, without incurring any potential cost or loss. If you have a no-claim bonus, the same will be honored by the new insurance provider.
The sum Assured for your car generally depends on the IDV of your car. IDV is a commonly used Term which refers to the Insured Declared Value. The calculation of IDV is dependent on the age of your car. It is presumed that higher the age of the car, higher is the wear and tear. Depreciation is applied on the previous year value of the car to calculate the new IDV. The IDV will determine the maximum Claim that you would receive in case of damage to your car. Under no circumstances, you can claim for a damage that is higher than the IDV of the car. In case you would like to insure your vehicle at the cost of replacement with a new car, you may opt for the Return to Invoice cover.
Besides the basic terms that your policy includes such as third party coverage, damage reimbursement, Personal Injury Protection etc. Do compare the value added benefits that your insurance company may offer such as:
You would be compensated for the cost of replacement of keys / locks, in case your keys are stolen or lock is broken in case of car break in. The compensation is subject to certain limits.
This would allow compensation for loss or damage to any personal belonging at the time of damage or loss to the vehicle.
As per this benefit, No Claim Bonus will be awarded in case you take a repair (rather than replacement) of damage to only Glass, Fibre, Plastic and Rubber parts, provided no other claim for damage to the vehicle is preferred during the policy period.
In case the vehicle becomes immobile due to accident, you would be compensated for the cost of overnight stay and taxi charges for returning to the place of residence or the nearest city of travel.
You will be compensated for the cost of alternate transport that you might have to take while your vehicle is under repair.
Usually, most people compare insurance Premium quotes on a broad basis and take a decision. However, it is crucial to comprehend the terms and conditions offered by different car insurance policies, along with the premium before you buy car insurance. These days you can conveniently compare car insurance premium and features through insurance comparison websites such as www.easypolicy.com.