Categorized | Car Insurance

how much deductible can i opt for?

Motor insurance is mandatory  and essential for any vehicle owner who wishes to safeguard his vehicle against any unfortunate incident. Investing in the right Policy and deciding upon the Premium and Deductible amounts is a very long and taxing procedure. Detail study and proper investment is absolutely necessary to make an investment that doesn't adversely affect your budget in the long run.

Insurance companies provide different types of covers for your vehicle insurance:

Third party property damage
Third Party Fire and theft Cover
Comprehensive Car Insurance

AWARENESS OF CAR INSURANCE CLAIMS

Vehicle insurance claims could fail at several instances. Before making a Claim you need to analyze the total damage costs, because claiming often for small amounts is primarily an investment failure. And if the damage costs are unaffordable then you need to make a claim and submit every detail of the Accident as a report and support it with a witness. After getting the claim approved, get your vehicle repaired in an Insurer recommended garage or an authorized motor service centre and claim the Reimbursement later.

One must be aware of all the circumstances under which a motor insurance claim can be denied by the insurer. Few of them are listed below:

Structural failure of the vehicle due to defective maintenance.
Intentional damage to the vehicle by owner or caused as a collateral damage of a civil commotion or war.
Inaccurate and insufficient details in the claim report.
Accidents registered outside the policy defined territorial limits.

WHAT IS A DEDUCTIBLE?

Deductible is the amount paid by the policy holder when a damage or loss happens to the car. His monthly investments towards the car insurance plan are known as premiums. Premiums are generally less if the deductible is higher. Before investing, decide upon the most affordable premium and maximum bearable deductible considering your claim probability.

CALCULATE  DEDUCTIBLES

Deductibles could be calculated on the following basis before you buy car insurance policy:

DRIVING RECORD

A person with poor driving record is liable to be making more claims in a year and hence the premiums might increase exponentially with each claim. Therefore it is better if he choose a high deductible as it will compensate with the low premiums.

HIGH PROBABILITY OF THEFT

If the policy holder is in a region where the probability of car being stolen or damaged as an act of vandalism is high, then it is better to choose a high deductible. Repeatedly if parts of car are stolen or the car as a whole is damaged extensively, you will have to make multiple claims and this will substantially increase your premium to a really unaffordable rate.

DRIVING HABIT

Adventurous driving is always Risk prone and has considerable claim probability. Therefore depending upon the driving nature and extent of driving hours one may decide upon the amount of deductible. People with less driving hours or less prone to risks may opt for low deductibles as claim probability will be low.

ACCIDENT RISK

Roads with high accident risks may also add to driving risks and poorly maintained roadways may also damage the vehicle to a great extent. The deductibles could be calculated keeping all these minor factors too in mind.

THINK BEFORE INVESTING

Car insurance plans could be customized to suit your requirements. It’s better to be fully aware of the factors that could help in getting maximum returns from your investment like deductible amount, Coverage aspects, premium amounts etc. Remember the following stuffs if you are an auto insurance policy holder:

If you have a claim free year, you will be able to avail the 'no claim bonus'. Shell out minor repair costs from your pocket instead of making claims.

File your claim report carefully providing all the details accurately.

Choose the best motor policy and be aware of all policy details.