A car owner must have two things to drive legally, those are, a valid driving license and a car insurance policy. There are two types of insurance policies. The one that is mandatory is third-party, and the other is called comprehensive or package policy. All the insurance companies offers both types of policy.
As per the Motor Vehicles Act, 1988, it is mandatory that every vehicle owner must have a third-party insurance. However, a third-party policy covers only the loss or damage incurred to the third-party due to the insured vehicle. A third-party can be pedestrians, passengers of another vehicle, or any other vehicle or property.
Differences between third-party and comprehensive/package policy:
Third-party policy:
- The third-party policy covers any bodily injury, accidental death of the third-party and any damages incurred to the third party property due to the insured vehicle.
2. Premium is decided and fixed by IRDA based on the car engine cc.
Comprehensive or Package policy:
- It covers the damages incurred to the insured vehicle due to any man-made or natural perils.
2. It also covers the third-party loss or damages.
3. The loss due to the theft of the insured vehicle is covered.
4. Option to buy add-on covers to increase the coverage of the policy.
Clearly, if you wish to cover own damage to your vehicle and also third-party liability cover, a comprehensive or package policy is a must.
Another important difference is regardless of the insurer the third-party liability cover premium will be same as it is based on engine cc and is fixed by IRDA. However, the premium for a comprehensive policy differs from insurer to insurer. That’s where you need to find the best cover quotes.
So let’s see how to find the best car insurance quotes.
#1 – Check different plans online
There are many general insurance companies that offer a car insurance policy.
The best way to get the best car insurance quotes is to go online and compare the quotes offered by different insurers. You may also compare online on the web aggregators website or the insurance brokers firm like Coverfox.com. Additional paid features like add-on covers are optional. These add-on covers come at a price but are worth the money. Check and compare add-on covers provided by different insurers. Buy only those which are necessary. Unnecessary add-on covers will just add to the premiums you pay.
#2 – Opt for a voluntary deductible
A voluntary deductible is optional deductible facility offered by insurers. It works on the basic fundamental that the policyholder promises to pay a percentage of a claim amount at the time of claim, while the rest will be paid by the insurance company.
When you opt for a voluntary deductible, you lower the incidence of claims on the insurer. That is why insurers allow premium discounts when you choose a voluntary deductible limit.
#3 – Check for discounts
You may be eligible for some discounts on the premiums. There are ways you can save money on premiums, one such option is that if you didn’t lodge any claims in the previous tenure, you are eligible to No Claim Bonus (NCB). No Claim Bonus is a discount offered by all the insurers to the vehicle owner as a reward for safe driving.
Other options are to install IRDA approved anti-theft devices in your car which makes you eligible for discounts. You also get discounts on the premium if you are a member of any Automobile Association of India.
#4 – Choose the right Insured Declared Value (IDV)
The Insured Declared Value (IDV) of your car is the market value of your car after depreciation. The IDV decreases every year as your car gets old. The IDV determines your car insurance. So, when selecting a car insurance plan, choose the right IDV of your car to get the best car insurance quote for your insurance plan. The cheaper the quote doesn’t mean it’s the best quote. Some insurer may charge a lower premium, but IDV might also be lower. Check IDV and also claim settlement ratio.
#5 – Renew policy on time
If your insurance policy has expired, you may have to pay the penalty. In addition to that, your car will undergo inspection before renewal. The delay over and above 90 days will nullify the benefit of discount you get because of NCB.
These are the secrets to get the best car insurance quotes. Besides saving money on the premiums, these secrets also give you the best car insurance policy for your car. Keep these points when next time you plan to buy a policy. This simple, quick guide shall help you to get the best car insurance quote.
