Which Type of Car Insurance to Choose?

How much do you pay for your car insurance policy? Do you think there’s better car insurance policy? Will you be getting all the benefits you are entitled to? There are two types of car insurance and it is very important to make the right choice. This article will help you decide if you must go in for the insurance you have chosen.

The first type of insurance will cover third party damages of up to Rs 6,000 done to your car. An additional premium will have to pay if you want fire and theft damages to be covered. The second type of car insurance in India is the comprehensive insurance policy which gives maximum coverage. Damages due to fire, landslides, earthquakes, robbery, riots, strikes, accidents or any other man-made or natural calamity get covered under this insurance. It however does not cover the losses incurred due to drinking while driving, damages occurring from driving without a valid license, wear and tear of car parts due to regular use, electrical and mechanical failures and damage caused due to nuclear risk or war.

The following checklist will help Indian car owners make a better choice:

  • Most cars come with theft devices. Having these in your car increase the chances of getting a discount on car insurance.
  • Check if the insurance provider offers discounts if two vehicles are insured. It sometimes so happens that insurance amount for two cars will be the same as one. In case you are about to sell off your old car, hold on for some time. Sell it after getting it insured as an insured car will have more value. At the same time you would be getting the insurance for two cars at the cost of one or at a very low rate.
  • Stick to long-term policies. Even when the insurance amount increases after a certain time, your car will remain unaffected. For example, choose a yearly policy instead of a six-month policy.
  • If your car will not be in use for any period of time, save on car insurance by keeping only comprehensive coverage during that time. Your car will not meet with accidents in the garage and does not need too much coverage.
  • Do not mention more kilometers than what you travel by your car when asked by the insurance agent. Watch your mileage closely and specify the exact distance traveled. You are likely to get a significant discount by not giving a greater mileage figure.
  • Call the agent and ask for a list of affiliations. You are likely to get a discounted rate when you are identified as the member of an organization or the employee of your company.
  • If your car is very new, you needn't worry too much about the coverage as comprehensive and collision coverage will be available as default. However, if your car is old, make sure the car has additional coverage.
  • Make sure to browse online to get a fair idea about car insurance rates and the coverage provided. You may lose a lot as a result of ignorance. It is possible to get quotes online. Get them from multiple insurance providers and compare to pick out the best.

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