Planning to Buy Comprehensive Car Insurance? Consider These 6 Factors First

While third-party insurance fulfils the statutory obligations, it doesn’t cover the damages caused to the insured vehicle. On the other hand, comprehensive vehicle insurance covers your car for both third-party and own damages. Therefore, comprehensive four-wheeler insurance can be a better option to go with.

However, there are certain factors you should consider before purchasing comprehensive four-wheeler insurance.

1. Insurer’s Reputation

One of the first things to check while buying comprehensive vehicle insurance is the insurer’s reputation regarding settling claims. While you can always switch to a different insurer later, it helps if you get the right insurer at first.

Look for some common ratios to identify a good insurance provider. For instance, the insurer should have a good claim settlement ratio, preferably more than 95%. Moreover, the claim settlement process should be quick and hassle-free.

2. Quote Comparison

You can easily request a vehicle insurance quote online by visiting the insurer’s website. A quote gives you an estimate of the budget required to buy the right comprehensive car insurance. A quote can also help you to prioritise the add-ons to consider.

3. Add Ons

Add-ons are the optional covers you can include with your comprehensive car insurance by paying an additional premium for each one. Consider including some useful covers which can be handy in tackling certain crisis situations.

For instance, the 24 x 7 Roadside Assistance can help you get mechanic help or tow your car if it breaks down in a deserted stretch of road.

4. The Car’s Condition

If your car is new or an expensive one, then you should buy comprehensive insurance to have full insurance protection. Your car insurance amount should adequately cover the repair or replacement costs you might have to incur if your car is involved in an accident.

But, if your car is old, then your insurer will take the depreciation into account, resulting in a low comprehensive vehicle insurance cost.

Moreover, some covers and add-ons are only available for new cars or up to the first few years. For instance, the return to invoice cover can only be purchased and renewed for up to the first 3 years.

5. Insured Declared Value (IDV)

IDV is the maximum value the insurer will give you if a car is totalled in an accident or stolen. However, IDV is directly proportional to the premium. So does this mean you should keep the IDV very low? No. As it can affect not only your insured amount but also your resale value. The best way is to select your car’s right IDV based on the IRDA’s depreciation guidelines.

Once you know your IDV, you can ask the insurance company for the right comprehensive insurance quote for your car and compare more objectively.

6. Voluntary Deductibles

The deductible is the amount of money the policyholder must pay before the insurer pays the rest of the vehicle insurance claim amount. For example, if you file a vehicle insurance claim of ₹20,000 with ₹3000 as deductibles, then you’ll receive a maximum claim of ₹17,000 only (20,000-3,000).

Every vehicle insurance claim comes with compulsory deductibles. Additionally, you can increase the percentage of deductibles by opting for voluntary deductibles. Your comprehensive car insurance premium can go down depending on the voluntary deductible percentage you choose. However, this may also lead to a lesser insurance payout in the event of a claim.

Owning a car can be a joyous experience when you don’t need to worry about vehicle insurance. Therefore, choose the right comprehensive vehicle insurance policy while considering the factors mentioned and hit the roads.