5 Points to Consider Before Buying Long-Term Comprehensive Car Insurance Policy
If you have a car in India, then you have to have insurance because it is mandatory. While the Indian law makes it compulsory to buy a third-party car insurance policy, it is recommended to go for a comprehensive car insurance plan for wide coverage. You can opt for both these plans for the long term but today we are going to discuss a long-term comprehensive car insurance plan.
A long-term comprehensive motor insurance policy is recommended as it relieves from the task of annual renewal. Moreover, when you purchase an insurance policy for the long term like for three-years, you will have to pay the price of the current year. In this way, you shield yourself from obvious price hikes of insurance plans for the coming two years.
The rates of third-party car insurance policy tend to increase on annual basis and since a comprehensive policy includes third-party cover as well, so its price bound to get increased. With this, the insurance providers may also increase the premium of your car insurance policy by offering cover for own damage and other add-ons every year that leads to an increase in the annual premium of the insurance plan.
Therefore, you should keep multiple points in your mind before purchasing a long-term insurance policy for your car. Mentioned below is the list of a few things that aid in buying the right long-term comprehensive car insurance policy:
mention below is the list of a few things that aid in buying the right long-term comprehensive car insurance
Will You Be the Owner?
You may renew or purchase your car insurance policy for three long years. However, the question here is, will you be keeping your vehicle for that long? Let us take an example, suppose your car is ten years old and you have purchased a comprehensive motor insurance policy for three-years on its eleventh year. Now because of some reasons you have sold it in that year only. So, in such a scenario the insurance premium that you have paid will not be fruitful. You will be required to transfer your car insurance policy to the new owner of the car, and if you buy a new car, then you will have to bet it insured as well. In this way, selling a motor car in the mid-way of your long-term comprehensive plan is non-productive in such a case. However, if you have the plan to keep your car for a long time, then you should opt for a long-term comprehensive motor insurance policy.
Riders or Add-Ons
You will have to keep in mind whether your selected rider is going to be with your policy for the long term or not. Suppose you have passenger add-on insurance cover as you travel every day with your spouse to the office. However, this scenario may change if you or your spouse goes for a job change and you both no longer travel together in the same direction. So, this type of cover may not be of use in the long run. If you will be using your car for road trips, then you must take a road-side assistance rider. Some other popular riders or add-ons are – Engine Protection, Zero Depreciation Cover, Return to Invoice, and cover for accessories. However, always remember that opting for these riders or add-ons will increase the premium of the car insurance policy. So, cross-check twice before buying any add-on and buy only the suitable ones by keeping the long-term nature of the policy in mind.
The credibility of Your Insurance Provider
The credibility of your insurer is very much required when it comes to policy purchase. This is because you want your insurance provider to be with you at the time of need and the claim settlement process has to be hassle-free. You never want to get stuck with an insurance provider that is not suitable for you. Even though portability is an option, but porting from one insurance provider to another requires a lot of effort. So, it is always recommended to do basic research related to the credibility of your insurance provider before buying a policy. Speaking to your family members and friends regarding the insurance provider and checking the reviews online is always recommended.
The insurance industry has become competitive because of the advent of online processes. Almost all the car insurance providers have gone digital. Because of this, the prospective and existing policyholders are getting the benefit of some extra or other features. Some of the car insurance providers are offering free of cost drop and pick-up facility (from the spot of accident or garage to the home and then back to the resident of the policyholder).
Comparison of Car Insurance Policies
It is suggested to not to directly jump in purchasing a car insurance plan before comparing different car insurance providers. A comparison of car insurance policies helps you to know the cover, premium charged, and the features of different policies. You can compare different car insurance plans on the website of a car insurance web aggregator and by browsing the website of some top insurers individually. Generally, most of the car insurance providers give all the information related to cover on their websites. However, at the time of comparison of different motor insurance, do not blindly purchase a plan that has the lowest premium instead check whether the coverage provided by your selected insurer is enough or not. Most of the insurers offer optimal insurance coverage at low policy premiums.
The Final Words!
Keeping the above five points in your mind may help you to make an informed decision related to the purchase of a motor insurance policy. In addition to this, the digital revolution in every field has made it easy to purchase anything and interact with sellers or brands. The insurance sector is no different in digitization. Most of the insurance companies have their website and sell their products there and hence they are also making their significant presence in the online market. Today, you can purchase insurance policies online very easily in just a few clicks. Moreover, to get the best deal, you can compare different car insurance plans online. So, keep all the aforementioned points in your mind and buy a long-term comprehensive car insurance policy online without much effort. In this way, selecting a comprehensive motor insurance policy for a long-term is not at all difficult instead all you need is to understand its necessity for you.
Frequently Asked Questions
Ans: You always have the option of purchasing and/or renewing your long-term car insurance policy online. The process of online renewal is quite simple and you can get your car insured within minutes.
Ans: It is recommended to read the policy-related documents carefully and clear all your doubts by contacting your insurance provider before renewing or purchasing a long-term motor insurance plan online. You can easily contact your car insurance provider by sending them an email or calling their customer support team. By these means, you can easily clear all your doubts.
Ans: The premium of the basic third-party car insurance party is not finalized by car insurance companies. They just have to follow the rates that are mentioned by the insurance governing authority of India, i.e. IRDAI (Insurance Regulatory and Development Authority of India). These rates may not or may change annually.
Ans: The insurance companies decide the premium of comprehensive car insurance policies. Therefore, it varies from insurance provider to insurance provider and different insurance companies may have different comprehensive motor insurance plans.
Ans: Road-side assistance is an add-on cover that you can add in your comprehensive car insurance policy. However, some insurance providers can offer this cover as a part of their comprehensive car insurance policy. You will get to know whether your comprehensive plan is offering roadside assistance or not by going through your car insurance policy. If you think that you are unable to understand the inclusions of your motor insurance plan, then you may contact your car insurance provider through email or call and get your doubts clarified.
Ans: All the crucial details related to your car insurance policy are mentioned on the webpage from where you have bought or renewed your insurance plan. However, there may have times when you do not get complete information about your insurance plan from there. In such a situation to get to know about the terms and conditions of your needed motor insurance policy, you can see the corresponding wordings of your policy. You can download this document from the website of your car insurance provider. Most of the time it is located under the download section of the website.
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Note: This is your car’s recommended IDV as per IRDAI’s depreciation guidelines.asdfsad However, insurance companies allow you to modify this IDV within a certain range (this range varies from insurer to insurer). Higher the IDV, higher the premium you pay.
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