The auto insurance package changes due to various reasons and you must be aware about the different procedures that are associated with each of the parameters of auto insurance.
It is better to take professional help.
Renew on time
It is not only necessary to buy an insurance policy, but also to keep it active at all times. Usually, a car insurance policy is valid for 1 year, long-term policies are also available. You need to renew your car insurance in time or else the policy will lapse. A lapsed policy is of no use and will not provide any kind of financial security to you or the third-party. Also, you may lose the accumulated NCB i.e. the No Claim Bonus if you fail to renew the policy in time. NCB is a discount you receive on car insurance prices when you do not raise any claim. Since this discount can be as high as 50%, you need to renew the policy in time to retain it.
Increase add-ons aptly
If you have opted for a comprehensive car insurance policy, you will be given an option for selecting additional coverages i.e. add-ons. If you have a new car, you can select from a wide range of add-ons.
Do understand deductible
A deductible is an amount that the policyholder needs to pay at the time of claim settlement. This is a small amount paid as a share by the policyholder. Basically, there are two kinds of deductibles in car insurance – compulsory and voluntary. You can choose the amount you wish to pay at the time of claim under the voluntary deductible. It is commonly believed that setting a higher deductible is fruitful for safe drivers. However, setting a higher deductible will result in a lower claim amount. Thus, be careful while setting a voluntary deductible.
Select appropriate package
Remember that there are two types of car insurance policies, third-party car insurance and comprehensive policy. The former is mandatory by Indian law, however, more coverages and benefits are offered by the latter kind. If you wish to avail minimum coverage i.e. only against third party perils, opt for third-party car insurance. However, if you want to protect your car as well, go for a comprehensive policy.
Know about Insured Declared Value
IDV is a jargon related to car insurance that you will come across frequently while buying the policy. IDV stands for Insured Declared Value. It is the approximate current market price of your car. Note that IDV is not the resale value of your vehicle, it is more like a reference point for the current value. Remember that you do not need to set an IDV if you opt for third-party car insurance. Thus, these are auto insurance techniques for beginners.