5 Points Checklist while buying Car Insurance

5 Points Checklist while buying Car Insurance



Buying automobile insurance is more than just fulfilling your duty as a car owner. Automobile insurance gives you a variety of advantages – it acts as your financial safeguard from any loss or damage to your car thanks to an accident, natural calamities, and man-made disasters like floods, earthquakes, fires, riots and even just in case your car gets stolen. It also covers your financial and legal liability just in case of any third-party loss or damage caused by your car in an accident.

When you plan to buy a vehicle, the choice will always be special. So, do that task with proper planning because it also needs your hard-earned money. Prepare an excel sheet, comparing mileage, features, color details available within the list of models a person is getting to buy.

If a customer is unhappy with their current car insurer, he or she will always choose the other insurer while renewing their automobile insurance. One can switch automobile insurance companies at the time of renewal by finding out rock bottom premium quotes and comprehensive benefits available within the market.

Here are the five points to remember:

  • Know the types of Car Insurance plans: 

This may assist you to form an informed decision based on your requirements. a comprehensive automobile insurance policy will provide you with wider protection of canopy. It’ll cover damages to your car caused by an accident either by you or a 3rd person. It’ll also cover any damage to your car thanks to theft, or acts of vandalism, or fire. Third-Party Liability automobile insurance will only protect damages caused by you to other people’s cars. If your car gets damaged in an accident of your fault, this policy won’t cover any repair work for your car.

  • Know the Add-on covers: 

It is important to explore all add-on coverage available like zero depreciation, engine protector cover, invoice protection, 24*7 roadside assistance, covering consumables, loss of keys, etc. There could be some add-on coverage that you’ll have to pay a nominal amount for and a few which don’t need to be purchased. You may choose the add-on covers mentioned and far more with the assistance of our experts at Proficient Finance. Zero depreciation, no claim bonus (NCB), 24×7 roadside assistance, engine protector, accessories cover and personal accident protection passengers are a number of the add-on covers you could take on to give your car extra protection.

  • Set the accurate IDV for your car: 

The maximum sum assured fixed by the insurer is the Insured Declared Value or IDV of your car.  Insurance companies fix the IDV for the tenure of the automobile insurance policy, usually based on the manufacturer’s asking price of the car minus the depreciation value of the vehicle IDV in automobile insurance is the amount you’d receive if your car gets damaged, stolen, or lost parts. Make sure that you do not set the IDV higher (will increase your premium) or lower (will offer you a lesser claim amount) than your car’s market price.

  • Understanding factors affecting your Insurance Premium:  

When buying automobile insurance, you must also know the factors that affect how your automobile insurance policy premium is going to be calculated by the insurance firm. A better or lower premium amount depends on these factors. Some factors are within your control like the sort of car you purchase, its engine cubic capacity (cc), age of the car, the value of the car, the add-on covers opted for, No Claim Bonus (NCB) and therefore the Insured Declared Value (IDV) of the car. However, the driving location where your car is registered might not be in your control to vary. A high vehicle density and theft-prone location will increase the premium.

  • Your Policy Wordings: 

Opting for the least premium available isn’t always the simplest choice. It’s important to read the fine line of the detailed coverage of the policy, including clauses at the time of insurance renewal. If you’re not thoroughly apprised of all possible terms and clauses, this will cause misunderstandings and disappointment when the claim is repudiated. Hence, you ought to do a web automobile insurance comparison to know, to the fullest extent, what’s covered and not covered to form an informed decision.

So, these are the five key points you must know before going out shopping for car insurance. Do not forget that choosing the proper policy is extremely important because it’ll help policyholders to secure their expensive purchase, a car without burning an enormous hole in your pocket. And if you find all of this a bit too confusing or hectic, you can take help from our experts at Proficient Finance to determine which car insurance perfectly suits all your needs. Reach back to us and get perfectly optimized car insurance for yourself today!



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