What Essential Aspects you should Consider Before Purchasing Car Insurance?


When it comes to purchasing car insurance, you should rest assured to come across different car insurance coverage packages. It would be relatively easy to determine what you require purchasing by making a comprehensive list of things.

A majority of people would look forward to purchasing a car insurance policy to protect against the financial damage that may be caused in case of an accident.

Three basic purposes of a car insurance policy

  • Third-party coverage
  • Personal accident coverage
  • Car damage coverage

Car insurance has been mandatory for the vehicle owner to own third party coverage. However, it would be the prerogative of the car owners to purchase vehicle damage coverage along with personal accident coverage. The kind of car coverage you purchase would determine your car insurance premium. More coverage would cater to you with higher premiums.

Important aspects to consider when choosing a car insurance policy

You would come across details in all insurance policies. It would be relevant and imperative for receiving hassle-free claims. Find below a few important aspects that you need to consider before you purchase a car insurance policy.

  • Comparing car insurance policy terms and premiums

The competitive car insurance market would require you to do an online comparison before purchasing car insurance. You may strike a good deal. You should not look for the lowest premium offered. It would make a huge difference in the benefits you may receive. Making a comparison for lower premiums after finalizing the benefits and features would help you purchase the right insurance policy.

  • Settlement of claims

You should be prudent in choosing an insurance provider who has the best claim settlement history. You should also ensure that the insurance provider has authorized repair centers and agents in your region. It would enable you to make the most of hassle-free cashless claim experience.

  • The insurance declared value (IDV)

The agent might lower the Insurer Declared Value (IDV) of your car and allure you with a lower premium. However, you should ensure that the IDV of the vehicle is higher. The IDV has been deemed the maximum amount you could claim in the event of vehicle theft or damage of the vehicle beyond repair. When it comes to calculating the IDV, you should consider deducting the depreciation from the IDV of the previous year. You should search for the highest IDV and the lowest premium.

  • Compulsory deductible and voluntary deductible

When looking forward to purchasing a comprehensive insurance cover protecting you from vehicle damage and third party liability, it would be essential to check the compulsory deductible for your car insurance policy. A compulsory deductible would be the requisite amount you need to pay for filing a vehicle damage claim.

Chances are higher about your insurance agent alluring you with lower premiums. He would incorporate a voluntary deductible above the compulsory deductible in your policy. The compulsory deductible would be the amount that insurers agree to pay in the event of filing a claim. The liability of the customer agreeing to voluntary deductible would increase in case of filing a claim.

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