According to reports from Statista, about 4.4 million cars (including passenger cars and commercial vehicles) were sold in India in the year 2018. The overall sales of cars surpassed 26.7 million for the very first time in the country.
The figures denote that cars, especially four-wheelers, are no more a luxury good. It has made its mark as an item of necessity for many Indians. People thus feel the need for safeguarding their cars from all kind of damages. The government has also mandated every car owner to have a car insurance policy through the Motor Vehicles Act of 1988. Such insurance policies compensate for any damage to your vehicle caused due to an accident, burglary or natural calamity.
Steps to take while changing your car policy:
When you avail a car insurance scheme, you get coverage as returns against the premium paid. However, your current insurance plan might not fulfil all your coverage requirements. In case you feel the need to change car insurance policy, these are the two essential steps you must take –
1. Find a policy offering higher coverage
While the Motor Vehicles Act necessitates car insurance, it does not obligate any car insurance policy company to provide a stipulated coverage amount. While it is to the discretion of the policy-providing companies to set their coverage limits, you must compare the several policies available before selecting the best. The factors based on which you can assess the coverage limit of a car insurance scheme are-
- Your budget- Determine the premium amount you will be able to pay easily. Figure out the other expenses so that you do not end up surpassing your budget.
- Value of the vehicle to be insured- If your car is newly bought, your coverage demands would certainly be higher. In such cases, it is important to opt for a car insurance policy with extra coverage.
2. Look for customised plans
Several insurance companies offer policies with a range of add-on covers so that you can address your requirements in the best possible way. You will only be required to pay an additional premium amount as applicable. You can look for policies regarding car insurance online to have an idea of all the available options. The add-on covers you must have in your next car/ motor insurance plan are-
- Cover against engine breakdown-
In such add-on schemes, policy providers compensate for the cost needed to repair engine break-downs. This facility is available on cars that are not more than 3 years old.
- Zero depreciation cover-
In general insurance schemes for car, certain depreciation value is deducted from the coverage amount. However, availing a zero-depreciation cover add-on lets you claim the full coverage amount, devoid of any depreciation cost deduction.
- No-claim Bonus facility-
Certain car and motor insurance schemes provide you with a bonus if you have not made any claims for your car throughout the year. A maximum amount of 50% of the total cover value can get accumulated as NCB.
- Returns to invoice-
You can opt to buy car insurance online which compensates for the entire damage/loss of your car and also pays the following-
- Market value of the insured car.
- Registration charges.
- Stipulated road tax.
- Spare car facility-
In the case of car accident or damage, you might feel the need for a substitute car to meet your temporary requirements. By availing a substitute car add-on, you can acquire the hiring cost of a spare car for up to 15 days.
- Key replacement coverage
With this add-on, a car insurance policy offers you the compensation amount for fitting/purchasing new car keys in case they have been stolen or misplaced.
- On-road assistance
Availing such add-ons, you can get financial assistance while changing a flat tyre, emergency repairs, or even refuelling the engine.
Switching to a car insurance policy that best suits your requirements and overcomes the drawbacks of previous policy is extremely important. Check all the terms and conditions carefully before doing so.