Finance

Prerequisites You Should Know of Before Buying Car Insurance

Insurance has become a crucial topic today as it has much significance in our day-to-day lives. Even when it comes to motor insurance, the Motor Vehicles Act, 1988, makes it mandatory for each automobile owner to buy a basic third-party liability policy for their vehicles. Insurance proves to be of great help when it comes to combating the ever-increasing repair expenses caused due to road accidents. Nonetheless, this does not also mean that you buy any insurance policy that is suggested. Modern technology makes it easier for you to conduct your own research and find the best car insurance policy for yourself.

Keep reading to know what prerequisites you should consider while buying car insurance:

  1. Types of car insurance policies

There are mainly two types of motor insurance policies: third-party liability and comprehensive policy. As the name suggests, third-party liability cover only compensates for damages caused by your car to the third-party’s person or property. On the contrary, a comprehensive policy is an extensive policy that covers own damage as well as third-party liability.

  1. Make a choice

You can go for any type of policy that you prefer. If you opt for a comprehensive policy, you also have an option to enhance your existing cover with the help of the available add-ons. However, you must know that additional covers rack up your premium cost.

  1. Look for concessions

Don’t go for the very first insurance policy you like. Browse more such policies as you might find one with the exact same coverage you need at a more affordable rate. Look for maximum concessions, trustworthy insurers and run online comparisons on the various policies that are being offered.

 

  1. Compare insurance policies online

Before you purchase a policy, it is necessary to compare multiple policies online. Calculate the premiums with the help of a car insurance premium calculator and look for various quotes that the insurance companies are offering you. It will be your loss if you do not study the market as well as the pricing before buying. It is also necessary for you to know the inclusions and exclusions of the policy you’re opting for.

Another important thing to keep in mind would be car insurance renewal. You must also always remember to renew your policy on time, i.e. before the term expiration date. You cannot enjoy the benefits of insurance on a lapsed policy. Most insurance companies do provide you with a grace period of 30 days as a second chance to renew your policy. If you do not renew your policy even in this period, you will have to buy a new insurance cover, meaning that your car will be inspected again, not to mention the loss of the no-claim bonus.

If you cannot afford a comprehensive policy or if you don’t feel the need to protect your car from untoward damages, then buying the basic third party car insurance online is a good place to start.

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