Our society has grown into an economy where each household has at least one car in their porch. Most of the middle and upper middle class in the metro cities have two cars because the husband and wife, both are working and having own vehicle provides lots of comfort and convenience for commutation.
When you buy a car, it is mandatory to have insurance for it for risk coverage. Most of the renowned insurance companies also have policies for car insurance. You can even buy an insurance policy online with the advancement of internet and e-commerce. Let us look into various factors that need to be considered while choosing insurance for the car.
Choose the ideal type of insurance required: There are basically two types of insurance when it comes to car insurance.
Third party insurance: This is a type of insurance which covers any damage that has occurred to a third party, or to property. It covers any death or injury to a third party in case of an accident. Third party insurance is a mandate for all vehicles that are to be driven on public roads.
Comprehensive plan: This is an all coverage plan which means it will cover your vehicle, any personal injury as well as third-party coverage. By all means, this is a much-preferred plan for most of the car owners. The comprehensive plan also covers damage to the car in case of natural calamities like earthquake, cyclone, fire, explosions etc.
Premium amount to be paid: Have a look at the amount that needs to be paid for the insurance coverage. Most of the times, the premium would be based on the make and model of your car. The sports utility vehicles are charged more premium amount than the hatchback models. There are a lot of other factors like fuel type, capacity etc. The diesel engine vehicles are charged more premium than the petrol vehicles. The age of the car also matters when it comes to an insurance premium. The older the car, more premiums you will have to pay. The value of the car after depreciation is another key factor which determines the premium amount. The insurance company will also check the claim history before finalizing the premium amount. If the car has a lot of claims in the past, the premium amount would be higher due to obvious reasons.
Terms and conditions: You must check the terms and conditions of the insurance scheme thoroughly before you sign the cake. Some of the car insurance companies offer facilities like no claim bonus. This is a bonus which you will receive in case you have not made any claim in the history. You might also receive a reduction in the premium amount if claims are not made in the past. So compare insurance plans from different companies to get the best deal.
Always make sure to renew your car insurance on time. Usually, the insurance company offers a grace period of a week during which insurance will still cover your car.