Since car insurance is mandatory in India, many people make the mistake of treating it as a formality. As a result, they do not enquire about the car insurance options. Research is necessary as the data you gather can help you find a better cover at a better rate. There are many small but important things that you need to find out while buying car insurance. Read this article to know what they exactly are.
Things you probably didn’t know about car insurance
Let us talk about the common car insurance facts that many people are unaware of:
- Third party car insurance is compulsory: It is absolutely compulsory for you to buy a basic third party cover. As per the laws of the country, you cannot drive a vehicle on the Indian roads without a third party car insurance cover in place. So do remember to buy a good third party motor insurance plan before you take your new vehicle out for a spin.
- Comprehensive cover is optional: A comprehensive car insurance plan is optional, but it is highly recommended that you get one. The comprehensive cover offers all the benefits of a third party cover. In addition, it also offers protection to your own vehicle.
- Riders are available: Riders are add-on covers that you can buy at an extra cost. Riders help you to customise your plan you increase the insurance coverage. Riders are available with all motor insurance policies. Some of the common riders include the engine cover rider and the zero depreciation rider, among others.
- Personal accident cover is vital: You can opt for a personal accident cover with your car insurance plan. If you die or are disabled due to a car crash, your motor insurance plan will pay a sum assured to your family members. This is a very useful cover to have and you must opt for it while buying a car insurance plan.
- You can bundle car insurance: If you have more than one car in the family, you can bundle all the policies, approach a single insurance provider and ask for a discount. If you buy multiple policies at a time, you will get a discount as well as better offers from the insurer.
- Car insurance prices vary on your location and model: If you live in a tier 1 city like Delhi and drive a Honda City, you may have to pay a higher premium than your friend who lives in Panipat and drives a Honda Civic. Car insurance premiums vary depending on where you live. It also varies depending on the car models. If you live in a tier 1 city in India, you will have to pay more for your motor insurance policy. Similarly, if you have a high-end car, quite understandably, your car insurance premium will be higher.
- Compare the available options: This is a tip that everyone can benefit from – never forget to compare the plans when buying car insurance. It is very easy to compare car insurance as you can then locate the best possible plans at the most economic prices.
Common myths about car insurance
There is a lot of misconception about car insurance and most of it stems out of poor research. Here are some common car insurance myths that you need to stay away from:
- An agent will find the best plan: No, he won’t! When you buy a plan through an agent, you pay a brokerage fee and that pushes up the overall cost of the plan. So buying the car insurance policy online is always cheaper.
- A policy for a red car is more expensive: The colour of the car has no role to play in the insurance costs. Your premium will be decided after taking the vehicle’s age, make and model number into consideration.
- All policies are the same: No, there are two distinct types of motor insurance – third party and comprehensive. If you buy a third party plan, you will not get covered for the damages to your own vehicle. For that, you need a comprehensive cover. So all insurance plans definitely do not offer the same cover.
Keep the points mentioned above in mind and make an informed choice when buying car insurance. It is very easy to find out the small details that will give you the maximum car insurance cover. So do your research and keep your vehicle protected in the best possible manner.