Hyderabad: Travelling in one's own car is everybody's dream. To realise it, we spend lakhs of rupees going through all the available choices. When it comes to insurance, we do not spend the same amount of energy in choosing the suitable and correct insurance policy for our vehicle.
Many regret not insuring their vehicle when their car is involved in an accident. Remember the adage 'better late than never', the search for vehicle insurance policies begins there. Some of us will take an insurance policy approaching insurance companies when we come to terms with our mistake of not taking one.
In Covid-era many of us prefer to travel alone in our own vehicles. This has led to an exponential increase in the number of car buyers. Law mandates insurance for all vehicles. And there are two types of insurances in the offer - comprehensive and third party. At least a third-party insurance is mandatory in order to bring the vehicle onto the road.
Let's find out what not to do when it comes to vehicle insurance.
Motor insurance policies are available online and offline. Since most of us have gone digital, we prefer to renew or purchase policies online. Insurance companies' help desks are just a call or message away to render their assistance in this regard.
However, we need to exercise certain precautions - be it insuring a brand new car or renewing the existing or lapsed insurance.
We have to factor in our needs before we opt for a particular policy. Yes. Opting for a need-based insurance is always a good idea.
Always opt for a comprehensive policy that offers full protection. The comprehensive policy also covers the third-party in its offering.
We also should dispense with the idea of insuring the vehicle only to provide for the legal compliance. Let's not forget the fact that repair cost would run into thousands of rupees even if it were a minor accident.
We may find a low premium policy attractive. We should never get carried away by that. Never choose a policy just because the premium is low. Your should make your choice after studying the insurance company's claim settlement history and the services provided.
It is possible to add more covers to the policy we choose by paying an extra premium. However, it is not advisable to choose the addons instead of taking the comprehensive policies. We have to be careful in choosing the add-ons in the policy - some may offer damage cover to the vehicle or engine - depending on whether or not these aspects are covered under the comprehensive cover. Also, you need to ask yourself whether you would require the services offered as add on covers.
It is ideal that the policy should be renewed before the end of the term. Otherwise, there is a risk of losing the No Claim Bonus (NCB). The NCB is paid for each unclaimed year. So, do not forget to renew your insurance before it expires.
According to Insurance Regulatory Authority of India, NCB is awarded to the insured and not to the insured vehicle. So when you buy a new car your NCB for the previous years, if any, can be transferred while purchasing the insurance for the new vehicle. Discuss this with the insurance company.
When taking out an insurance policy, make sure that all the details relating to the vehicle, make, model, year of manufacture/sale and personal particulars are entered properly. Mistakes, if any, are to be brought brought to the attention of the insurance company immediately and get the same corrected.
On a side note, never submit a claim which is not true as it attracts punishment as per law. Always make factual claims. Hope this article helped you with the tips you were looking for while purchasing car insurance.
