Did you know that car insurance is mandatory in India? You can be fined for driving a vehicle without insurance. It is always advisable to have a vehicle insurance plan as they safeguard you and your vehicle against possible conflicts or mishaps. However, buying an insurance policy can be tricky. With numerous types of vehicle insurance policies on offer, how do you find out which one meets your requirement? What does each online car insurance plan cover? These and some other questions that will be answered in this post.
What Is The Type Of Insurance Suitable For Your Requirement?
The first step to finding the right kind of insurance is knowing all the types of insurance plans that are available.
1. Third-Party or Liability Cover:
This plan covers any damage caused to the third party in the accident. Simply put, if you are in an accident that results in some form of damage to another vehicle or property, the cost of those damages will be covered by this insurance plan. It usually also covers any medical bills that arise from the accident for the third party. The purchase of this plan is mandatory by law.
2. Comprehensive Cover:
A third party plan pays for the damages caused to the other party. But what about you? What about the damages caused to your car? A comprehensive plan offers you complete coverage – for yourself and the third party. Since you have to buy a car insurance policy anyway, you might as well take one that benefits you too. The premium will be higher for this when compared to third-party insurance, but only by a slight margin.
3. Private or Commercial Vehicle Insurance:
Do you use the car only for personal purposes? Or is the car being used commercially as a cab, for delivery etc.? A car that is being used commercially is on the road more often than others and therefore is subject to greater risks. This is why there is a separate online car insurance plan that covers commercial vehicles. The premium for this type of insurance might be higher, but the coverage is also equally high.
If your car is used privately, you are typically susceptible to as many risks as a commercial vehicle. So, the premium and coverage need not be that high.
4. Personal Accident Cover:
Personal accident insurance plan covers any injury that can occur due to an accident. It usually covers partial or complete disability and death. If you already have a good health insurance plan that covers injuries caused in an accident, you don’t need a personal accident cover. However, if your health insurance plan is not very comprehensive, it is wise to get a personal accident cover along with your online car insurance policy.
5. Zero Depreciation Cover:
Typically, the IDV or Insured Declared Value of the car decreases with time. So the amount of that the insurance covers also decreases. With a zero-depreciation cover, the insurer bears the full cost of repairing the car, and you don’t have to pay a dime. However, this is available only for new cars, typically less than 5 years old, and the premium is also higher. If your car is new and you use it on a daily basis, it is a good idea to get the zero-depreciation cover.
What Is Your Long-Term Plan With Respect To Your Vehicle Insurance?
Car insurance is not something you buy only for a short period. It is a recurring purchase. This leads to another important question – Do you go with the same insurer or should you change companies?
Here is how you find the answer. Are you happy with your current plan? If the answer is yes, then it is better to continue with the same insurer. When you get your insurance from the same company for a few consecutive years, the company rewards you for your loyalty with some bonuses and benefits. And it also saves you the trouble of having to search for a new insurer.
But if you have had issues with your insurer in the past term, it might be a good idea to look at other options. There are a plethora of companies offering online car insurance plans, and you don’t have to be stuck with an insurer who doesn’t meet your needs.
Sometimes changing circumstances also demand a change in your insurance plans. The IDV or Insured Declared Value of the car decreases as your car becomes older. If you feel that your current insurer is not offering enough IDV, you should check out other options. Also, if you have been with the same company for a while, you can check out the competition to see if you can get a better deal.
Get You Insurance Today
If you don’t already have an insurance or are looking forward to buying one soon, it is a good idea to compare the different plans available. And you can do just that on Coverfox.com. If you are unsure about the type of insurance to get or if you need any assistance in buying the insurance, Coverfox.com can help you with that as well.