What kind of car insurance should you buy for your car
Availing car insurance gives you the necessary financial protection your vehicle requires the most. According to the Indian Motor Vehicles Act of 1988, it is mandatory to have a minimum of third-party car insurance in India. And driving without active car insurance in possession is considered as an offense on Indian roads inviting high penalties. A car insurance policy needs to be studied and analysed in depth before availing it. You can also take advice from experts in the insurance sector with dedicated handling of the auto industry. Car dealers also have in-house professionals who can offer their expertise on finalizing the right insurance for your car. They also facilitate and help us to comprehend the intricate details specified in the insurance documents. The ensuing facets and the type of policies offer a peek in determining the perfect kind of car insurance you should buy for your car.
Insured Declared Value
In simple terms, the IDV (Insured Declared Value) of the car insurance policy is the sum for which the vehicle is insured. The value is the maximum amount of claim you are eligible to get in the event of your car being damaged beyond repairs or gets stolen. The IDV is the representation of the market price of your vehicle after taking into account the appropriate value of depreciation. Each and every insurance firm adopts a different approach in finalizing the IDV and this is the reason why the values differ for different policies. It is always advised to do a comparison between the different available plans and make a wise choice by opting for the one with a high IDV as a high value enhances the claim value.
Though it is a norm to have a car insurance policy it should not deter you from checking on the premium rate to be paid. It has become a basic necessity to understand how the premium is charged. You need to make out the various components under different heads and it goes without saying you need to compare the premium rates of different types of plans before opting for it. Third party insurance and comprehensive car insurance are predominantly the most popular policies in the car market.
Third Party Insurance
This type of insurance entails coverage under the circumstance of an accident and damage that has been caused upon the adjoining property or a person leading to injuries or fatality.
Coverage – It encompasses the compensation for the individuals, other automobiles, the surroundings, including all external and other third-party components, wherein you aren’t eligible to receive any benefits.
Exclusion – Any form of damage incurred by your vehicle or injuries suffered by your passengers does not have the provision of receiving compensation.
Price – Third party car insurance is comparatively low priced when pitted against comprehensive policy as the coverage is restricted. Car owners can choose this insurance if the vehicle is not expensive and the expenditure incurred towards repair work can be easily managed.
Comprehensive Car Insurance
The comprehensive car insurance covers a host of factors and has a wider coverage.
Coverage – It includes coverage for natural disasters like floods, fires and earthquakes etc. Also covered in the policy are man-made disasters like robbery, riots, sabotage and even terrorist attacks. Third party insurance is part of the comprehensive car insurance and the personal accident cover offers benefits on experiencing injuries while driving the vehicle.
Exclusion – The coverage excludes benefits if the car turns old and there is value depreciation over a period of time.
Price – The cost of the policy increases in proportion with the rise in the coverage.
Qualified professionals employed with the car dealers are one of the safest sources for guidance in availing the suitable type of insurance and consulting them gives you the much needed comprehension of the policy.