Tips before buying car insurance

By | October 13, 2015
(Last Updated On: October 13, 2015)

Car insurance

For every car owner, motor insurance is definitely a big headache. But if treaded carefully, you can not only save, but also get added benefits for the same price. Here’re  tips that you can refer to while you renew your car insurance.

Compare different policies before buying car insurance

It may seem like a tedious job and continuing with your existing insurance option may seem to be the best option. But why not compare, when there are various websites available that make the insurance comparison process easy and hassle-free. For e.g.: is one website where you can compare insurance packages and get the best deal.

Read the fine prints of car insurance Policy

The policy package may seem to be a great deal with several discounts among others. But read the fine print and understand the hidden clauses while buying the policy.
Read each detail carefully and understand their implications to avoid hassles in the future.

Know what your car insurance Policy

car insurance

Know what your standard policy covers. While theft and accidental damage is covered under standard policy, not all parts of your vehicle get full coverage.

Calculate Your Vehicle’s Value before buying car insurance

We have all hated mathematics. But a little mathematics can save us from shelling out large premiums. It is extremely important that you calculate your car’s market value before you renew your insurance.

Once the depreciated value of the car is known, you can negotiate with your insurance agent over the premium amount, and save quite a lot. Consider this, if the market value of your car at the time of purchase was Rs 4 lakh and after three years, its value is Rs 2 lakh then your car’s value has depreciated by 50%.

Hence, while renewing your car’s insurance, you should take a policy on the depreciated value Rs 2 lakh instead of the original market value Rs 4 lakh.

No Claim Bonus

It’s the award that one gets for being a good student. And in this case, you are rewarded by the insurance company for not making any claims under your existing policy. Ensure that you claim your No Claim Bonus after your policy matures as it can reduce the premium amount by up to 50% over the years.

Claim Higher Deductibles

Experts have always suggested that by claiming higher deductibles, one can reduce the premium that is paid later. Voluntary Deductible is the amount you pay at the time of the claim; and if you pay a higher a voluntary deductible, then it converts into a sort of premiums-discounts over time.

Get additional damage cover in your car insurance Policy

Add-on plans, as the name suggests, offer insurance for several damages or events in addition to own damage and third party liability insurance that a regular motor policy offers.

Go for a zero depreciation add on cover with base policy

It is advisable to go for a zero depreciation add on cover. Here, the depreciation amount is paid by the insurance company, as against the buyer in a standard car insurance policy.

Add-on covers also include key-replacement cover, where you would be reimbursed even for the cost of replacing a lost car key. Do check with your agents about such add on covers.

For highly expensive cars, one should go for Zero Depreciation as well as engine protection add on covers.

In some of the expensive car models, there is a high risk of engine damage because of flooding or waterlogging, because of the low ground clearance of the cars

Do not nullify car insurance while customising your car

If you are customising your car, make sure that the changes made to the car do not nullify the insurance. Minimum cosmetic changes should be fine.

However, modification of engine or mechanical setup usually do not come under the standard cover. Also, there is a limit to the value of customisation that can be insured under any policy. Do check with the agent on any such limits before giving your car that facelift.

 Go for the best cover that fits your requirements

And finally, do compare car insurance offered by different companies. Usually, there is a significant price difference between policies of different companies. Go for the one that best fits your car and your requirement.
Reference :-, 
Naval Goel, Founder & CEO, PolicyX
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