Factors To Consider Before Purchasing Comprehensive Car Insurance

Why Buy Comprehensive Car Insurance?

In this section, we will highlight the benefits of insuring your car with Comprehensive Car Insurance.

 

1. Legal Compliance: As mentioned earlier, Third-Party Car Insurance is legally mandatory in India. Third-party coverage includes financial protection against injury, death or property damage to a third party. Buying a Comprehensive Car Policy includes this mandatory cover and therefore ensures that you are driving legally on Indian roads.

 

2. Better Coverage: Beyond the legally necessary Third-Party Insurance, a Comprehensive Car Policy also includes coverage against damages to your own vehicle. This extra monetary protection is provided under its Own Damage (OD) component. An OD Cover includes financial protection against accident-related damages, theft and damage caused by natural and man-made calamities.

 

3. Option of Add-ons: Another advantage of a Comprehensive Car Insurance Plan is the option to include Add-ons. Add-ons are complementary coverages that you can get over your existing coverage at an additional cost. Different insurance companies provide different types of add-ons to enhance financial protection for cars. Some of the commonly provided Add-ons include Nil Depreciation Cover, Consumables Cover and Road Side Assistance.

 

Things to consider before buying Comprehensive Car Insurance

Now that we have gone over the benefits of insuring your car with Comprehensive Car Insurance, here are some factors to consider before purchasing one.

 

1. Assess Risk

To decide if you need Comprehensive Car Insurance, first assess the accident-related risk that your car is exposed to. For instance, do you drive regularly or is your car parked in the shed most of the time? If you drive on a day-to-day basis or go off on occasional road trips, we recommend selecting a Comprehensive Car Insurance Policy.

 

2. Reliable Insurer

Once you are locked in with an insurance provider, you may be able to port to another insurer; however, porting to another company may result in losses. That is why, when purchasing insurance, it's vital to research the insurer thoroughly. Look into their Claim Settlement Ratio (CSR), client base, and reviews on social media and other websites to ensure their reliability and credibility.

 

3. Add-ons

Beyond the financial shielding of regular Comprehensive Car Insurance, you should consider buying Add-ons to improve coverage based on your insurance needs. There are multiple Add-ons, each designed to enhance insurance coverage. Nevertheless, in the interest of saving costs, assess your insurance needs and choose only the necessary add-ons.

 

4. Deductibles

A deductible is an agreement with your insurance company to share a percentage of the claim cost. Selecting a deductible may seem like an attractive choice at first because it reduces the premium payable, however, it may turn out to be a financial burden during a claim. Therefore, choose a deductible after careful consideration, and only choose a deductible amount that fits your pocket.

 

5. Learn Terminologies

We know insurance terminology can be confusing at first. But with a little bit of research, you may be able to find the meaning of basic insurance terminology like Policy Premium, Policy Term, Inclusions, and Exclusions. Knowing these terminology will help you understand the terms and conditions present in a policy document better, making your Comprehensive Car Insurance Policy buying journey a breeze.

 

6. Digital Presence

Most of the popular car insurance providers, like Shriram General Insurance, offer both online and offline modes of insurance. This has increased customers' ease of buying and using car insurance. So, when you are looking for Comprehensive Car Insurance, consider an insurance provider that has an online presence. That way you can conveniently buy, renew and raise claims against your Car Insurance.

 

7. Discounts

Want to get a good deal on your Car Insurance? Here are some insider tips. Generally, car insurance insurers provide a No Claim Bonus (NCB) after the completion of every claim-free year, capped at five consecutive years. This amounts to a maximum discount of 50% on the OD premium for a five-year claim-free period.

 

FAQs

1. How do I find the details of the inclusions and exclusions applicable to my Comprehensive Car Insurance Policy?

You can find your policy’s inclusions, exclusions and other details in the policy document shared by your insurance provider.

 

2. What is the cost of Comprehensive Car Insurance?

The cost of Comprehensive Car Insurance is not fixed. It varies from one insurer to another. Furthermore, the premium payable will also be influenced by the add-ons you choose. Therefore, we suggest that you head to our website, choose the coverages you want and get a free Comprehensive Car Insurance quote to get an idea of the cost.

 

3. Is it okay to buy a low-priced Comprehensive Car Insurance Policy?

We strongly advise against looking for the cheapest Comprehensive Car Insurance while selecting insurance for your car. Because, when it comes to Car Insurance, low-cost doesn’t always translate to the best option. We rather suggest that you choose a policy based on coverages, Claim Settlement Ratio (CSR) and online reviews, all while taking your budget into consideration.