What do you think buying car insurance is an easy task or difficult task? Earlier it was difficult but with the advancement in technology and availability of internet connectivity door to door, car insurance has become quite easy.
On the other hand if you are thinking that you can avoid buying a car insurance then think again. How good driver you are, sometimes unfortunate events happens and it results in heavy damage and loss to your car as well as you. Plus according to Motor Vehicles Act 1961, third party Insurance is mandatory in India under law. In addition to this, Car Insurance also covers the losses that occurs due to theft of the car or natural calamities.
Every month insured has to pay a certain sum of money to the insurer and in return they get an assured sum at the time of any accident or damage to your car.
Step by Step Guide for Buying Car Insurance
Step 1 – Do Proper Research
Do not make any decision in haste. The money that you are using for buying car insurance is your hard earned money. So before buying any insurance policy, do some in depth research. First of all find out about the best car insurance companies available and then check what discounts and services they offer. If you don’t have much time on your own. Go to an insurance agent, tell your requirements and he will do the rest task for you.
Step 2 – Know What Coverage you Need
Every person has different requirement according to their lifestyle and habit. So, before signing any document, do not forget to identify your own requirements. Some of the questions that you should answer before making final decision about your car are as follows –
- Is your car a newer model or some years old?
- What is your net worth?
- Do you own a business?
Answer of these questions are very important as these tells about the extent of the protection you require for yourself.
Step 3 – Know Yourself
There are lots of factors that determines the premium rate. Below are the items that influence the rate of premium.
- Type of car you driver.
- Age and value of your car.
- Your driving record.
- The distance you cover every year.
- Installation of Anti – Theft device on your car.
Step 4 – Look for Add – ons
With add – ons you can customize your car insurance policy according to your requirements. Well, the best part is nowadays, insurer provides you with the add – ons that are as per your need according to the age of your vehicle, model and several other factors. However to get these add – ons on your policy, you have pay extra sum of money. Yes, these add – ons increase your premium rate however provide extra protection to you as well as your car.
Step 5 – Never Undervalue
Are you aware that the premium rate is decided on the basis of the Insured Declared Value (IDV). Well, your agent can reduce this amount and hence you have to pay low amount as premium. However, I will advice you to never go for this step as when you will file for the claim it can reduce the assured amount. In simple words, higher IDV means higher premium and lower IDV means lower premium.