Ask Yourself These 5 Questions before Buying Car Insurance

Looking at the rise in the number of road accidents and car thefts, it has become imperative to have a good car insurance policy so that you’re protected. Before you purchase a car insurance policy, make sure to understand its coverage and features. Also, read the terms and conditions carefully before investing in any insurance policy to ensure that don’t face any problems while filing an insurance claim.

To guide you, here are five questions to ask yourself while buying a car insurance policy.

  1. How does the Insured Declared Value (IDV) affect the premium amount?

The value of the automobile being insured is termed as the insured declared value (IDV). This value is fixed by your insurer according to the manufacturer’s selling price. It is adjusted based on the depreciation schedule. Your premium, as well as the claim settlement amount, depends on the IDV. In case of total loss or theft of the vehicle, the IDV is the maximum amount that you will receive.

  1. What additional covers can I purchase?

If you opt for a comprehensive car insurance policy, you can also purchase add-on covers. They help enhance your existing coverage and offer you with added benefits at the cost of extra premium. You can opt from the various add-ons available such as Engine Protection, Zero Depreciation, Lock & Key Replacement, Accident Shield, and 24×7 Assistance.

  1. How to save on car insurance?

You can buy car insurance online to get a good deal and save a little. This way, you can also save on middle-men/agents.


  1. What is the extent of coverage offered under each type of car insurance policy?

The extent of coverage provided under the policy is one of the most important aspects to look at. The two main types of policies available are third-party liability and comprehensive policy. As per the Motor Vehicles Act, 1988, it is mandatory to purchase a third-party liability policy. On the other hand, purchasing a comprehensive car insurance policy is optional. The latter provides you with extensive coverage and protects you against fires, theft, and man-made and natural calamities, etc. On the contrary, a third-party insurance policy only offers coverage for damages or injuries caused to a third-party’s person or property.

  1. What are the exclusions of the policy?

You must go through the terms and conditions mentioned in your policy document to understand what’s not covered in your car insurance policy:

  • Electrical or mechanical breakdown
  • Damages caused while driving without a valid license
  • Any losses caused as a result of war, nuclear risk
  • General wear and tear, ageing
  • Accidents caused after driving under the influence of drugs or alcohol
  • Damages caused to tubes, tyres, etc., unless it takes place during an accident

Do not buy an insurance policy before asking these questions. Remember, you’re paying for this policy and so it should be able to offer you the maximum benefits. To avail better deals, make sure you compare multiple car insurance quotes online to check which insurance company is offering you good coverage at affordable prices. You can get premium quotes easily within a few minutes by using an online car insurance calculator.

Clare Louise

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