Third-party car insurance is mandatory by law. Car insurance constitutes more than just law mandates. Cars form an integral part of our day-to-day life. We must take care of all aspects of it.
Types of insurance coverage:
- Liability coverage: After an accident, it is concluded that it happened due to your negligence, liability coverage comes into play. It is mandatory by law to have liability coverage. It reimburses for the damage incurred by the third party. It covers the medical expenses of the third party due to the accident.
- Collision coverage: age of the vehicle is the determining factor. If it is involved in a collision, the insurance company will compensate for the repairs. On occasion, the money required to repair the car exceeds the market value of the car, in which case, the company reimburses the market value.
- Personal injury coverage: In addition to the mandatory insurance, one can avail of additional befits such as this. It ensures the reimbursement of the medical bills of all the passengers of the car regardless of liability.
- Comprehensive coverage: This is all-encompassing insurance that accounts for numerous risk factors. It covers a spectrum of hazardous elements such as weather damage, fire, theft, and flood. It will cover multitudinous factors even outside the purview of collisions.
Things to consider while selecting car insurance:
- The foremost thing to contemplate is the coverage variant befitting an individual’s needs. As aforementioned, there is a diverse selection of insurance available for one to choose from. One must consider their needs before settling on one.
- Another parameter to consider is add-ons. One can purchase more add-ones to enhance the basic insurance bought. Thus, it is imperative to consider add-ones costs while opting for insurance.
- Another crucial facet to consider is the IDV or the Insured Declared Value. It is the decided-upon market value of your car. The IDV is directly proportional to the premium. Thus, one must carefully weigh the benefits with capital to select an option.
- Apart from the basics, it is essential to inquire about the network of garages. Repairs done at authorized garages allow for a cashless claim. Thus, one must look over the number and frequency of the garages.
- Claim settlement ratio: This gives a real-time estimate of the claims settled by a company. It shows the proportion between the received and claims closed in a year.