car insurance

Auto or car insurance protects you from unforeseen risks. Its another thing, that it is a mandatory requirement just like vehicle registration for car owners.

 Is it only to obey the law?

It is a well-known fact, that sometimes due to us and sometimes due to others on road, a mishap may take place. There can be other reason also like natural calamities  (lightning strike, earthquakes etc.) or maybe manmade like hooliganism. The insurance cover financially reduces your burden.

How to choose

There are reasons that you need to be careful about the kind of policy you opt for and the add-ons you select.

Third party insurance and Comprehensive insurance, are the two most common policies offered by major players in the field of car insurance.

External party damage alone is covered by third-party policy whereas, Comprehensive provides cover to both parties. The premium differs, as is obvious. I suggest you decide which policy to go for as per make, the model of the car and the age of the car. Advisable to go for the third party in case of older cars but for comparatively newer do go for add-ons like natural calamities, engine, and electrical damage, RSA and inconvenience allowance too.

 

Rewards for no claims

No Claim Bonus is what you get on the premium if you do not make any claims in a year. Believe me, its substantial as about 20% of the premium might be covered by NCB in the subsequent year. Added no claim years may reduce the premium even up to 50 %! That is why its better if you do not charge the insurance company for small repairs and gain big in reduced premium for the next year.

Choose the insurer

There are many reputed insurer companies. Pray to spend a little time in deciding who to go to for insurance of your car as it is going to save a reasonable amount of moolah. Here, beware of tempting offers by those who may take you for a ride. Read the fine print. There are companies who pay the full repair cost and not part of it. So choose carefully.

Be responsible

Renew within 90 days of expiry or you loose out on the benefits offered.  The annual premium is calculated on the basis of IDV (Insured  Declared Value ) of the vehicle done every year by the insurer. It varies from company to company though not much. Do not reduce it just to have reduced premium, as then the claim will consequently be lower in case of write off or theft. Of course, the anti-theft device in your car lowers the premium considerably.

Another important thing to remember is that the No Claim Bonus is attached to you and not the company so it can be carried over to the new car or even to another company if you wish to get insured by someone else. See, if you are not happy with the insurer you are not bound to continue with him . you can always change the insurer if that is how you feel.

Although it seems like a tedious and time-consuming process, it does save a lot of hassle in case something goes wrong. It also gives peace of mind and boosts the confidence of being able to tackle situations smoothly as well as a pat on the back as a law-abiding citizen.

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