Be it a car or car insurance; research is the key factor to get the perfect one. Explore options and compare features and rates to make a wise choice.
Atul speaks about his purchase of a Honda City compact car to his friend over coffee. He mentions his fast-approaching car insurance renewal. He also speaks about how simple it was when the dealer arranged for his insurance the first time around. As the conversation continued, his friend advised him to look around a bit before the renewal.
Atul agreed to his suggestion and conducted thorough research online research. Atul saw that there were better car insurance policies out there. He realised his current one was not the best car insurance. You must think the same way about your car insurance. Read on to find out what Atul missed during the first year.
The “so-called” comprehensive car insurance plan bought from the dealer only had basic vanilla features. It offered 3 primary coverages, which were a necessity as per law. It also included the third-party liability cover and the own damage cover. The own damage part covered the loss or damage to the car. The another personal accidental cover was for the owner/driver. But, there are plans available with added inbuilt features too. These include roadside assistance and towing rider help, ambulance expenses and rental reimbursement rider. These missed out features could have enhanced the coverage and made it a more extensive plan.
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Settling for a lesser coverage may be the major outcome of not discovering more before making a purchase. This is what happened with Atul as he didn’t have an idea of his car’s IDV or Insured Declared Value. IDV is the current market value of the vehicle at any assessment time. This is the maximum amount of coverage the policy offers in case of total loss to the vehicle. Had he paid attention to the IDV, his coverage would be better.
Almost all insurers offer added features or riders at an extra cost. Even though there is an added cost involved, a few of them are must-haves. Had Atul has an idea about these riders, his plan would be enhanced on the purchase. Some of the important ones he missed out on are:
Roadside Assistance Cover
This cover is essential as Atul travels on highways, most of the times. With this rider, vehicle breakdown situations are handled. It is worth the while when you encounter problems like flat tires, jump-starting the battery or a fuel run-out.
Engine Protect Cover
Considering Indian monsoons and roadways during these times, water logging is a common problem. Such scenarios affect the car’s engine, which is the most expensive part. An engine protector is worth the extra cost.
Co-passenger Personal Accidental Cover
A family man like Atul, who travels with his family, needs this cover. This add-on protects co-passengers during an accident.
There will be a reward in the form of No Claim Bonus (NCB) for each claim-free year, up to 50% over the years. All hard-earned bonuses are lost if there a break in the chain of claim-free years. Though Atul is a careful driver, he may lose all accumulated bonus with one unfortunate event. An NCB protector can protect his bonuses.
Comparison shopping always fetches a better deal when it comes to policies. Atul bought a policy with all the necessary features; he missed on not only extensive coverage but also the chance of having them at a more reasonable rate. Gaining more information and practical use of the online platform is helpful. There are various discounts offered by many insurance players to be cost-effective.
Be it a new car insurance or a policy renewal, understand the need and explore options to get the best plan. Here are a few tips to make your car insurance purchase exciting.
Before you start, do your homework. Make use of the information available online. Understand the various options and plans with different features available in the market. Knowing these will help you make a suitable choice as per your need.
Compare the insurance quotes online. There are many platforms to make your comparison job easy. Don’t finalise the first quote you receive from your car dealer. Comparison gives you the bargaining power to make a smart choice.
For most of us, the first policy we buy is what the dealer suggests. But, while renewal we should consider all options and explore to learn about our policy to get the best at a reasonable rate.