Advertisement

Are you buying car insurance in 2022? Here’s an updated guide for your reference

Purchasing the appropriate car insurance can be a daunting task; if you are confused about how to purchase car insurance, you have clicked the right link.

FPJ Web Desk | Updated on: Friday, April 29, 2022, 04:42 PM IST

Advertisement

All of us who don’t own a car with the right insurance for it will dread seeing our vehicle damaged. Adding to the inconvenience will be the situation of being without personal transport, especially in the current environment, where we are increasingly dependent on our vehicles. So, it becomes crucial to invest in insurance for ensuring that we can get our cars repaired and return to working condition seamlessly, without burning a hole in our pocket.

Purchasing the appropriate car insurance can be a daunting task; if you are confused about how to purchase car insurance, you have clicked the right link. This article will help you understand the basics of car insurance and give you a few tips on getting the cheapest car insurance basis your requirements.

Types of Motor insurance

There are two types of motor insurance offered by the insurer:

Liability-only

The first one is a liability-only policy. The government has made it compulsory for all vehicle-owners to possess this policy. It provides coverage against the legal liabilities arising from a third party's injuries, death, or property damage.

Comprehensive car insurance

Comprehensive policies provide coverage for own-vehicle damage as well as for third-party liability. They also cover damages caused due to manmade tragedies such as thefts, riots, malicious activities, and vandalism. In addition, it also covers damages caused by natural disasters such as earthquakes, floods, landslides, and storms. As third-party insurance is compulsory in India, it is a wise option to opt for comprehensive car insurance. It offers adequate coverage and can help you not worry about being underinsured.

Let’s take an example. Say you park your car on the road and go to the mall. When you return after shopping, you notice that there is a dent in your vehicle. When you go to a mechanic to get the dent fixed, the cost of repairs turns out to be rather expensive. What may irk you more is the effort and time involved in fixing the dent, because of no fault of your own. The conclusion is that when you have comprehensive car insurance, you are safeguarded against such expensive costs.

Factors that you should consider before buying car insurance.

• Allowance

When your car is under repair, you can get an allowance from your insurer for hiring another mode to commute.  

• Lost key replacement cover

You get coverage on your car key when it gets lost or stolen; you get a cover for lock replacement if your car gets broken into. *

• Return to invoice cover

There is a difference between ‘claim amount receivable’ and 'purchase price of vehicle’ when it comes to the coverage of the losses arising due to any accident. This cover helps pay the amount equal to the purchase price of the vehicle.

• No claim bonus

You receive a no claim bonus (NCB) when you don't file a claim during the policy tenure. 

• Depreciation of reimbursement cover

This add-on feature helps you avoid any deduction in the form of depreciation on the cost of replaced parts. Rubber, glass, fibre parts, and plastic; you can get them repaired without affecting the NCB.

• Optional Add-On Coverage

You might have realized by now that when you think about how to get car insurance, there is a lot more than basic car insurance coverage to consider. Many drivers purchase more than the state minimum to ensure adequate coverage.

• Roadside assistance:

This optional coverage gives you peace of mind if something should malfunction while driving. Typical services include towing, lockout services, jump-starts, flat tire changes, and gas delivery.

• Gap insurance

If you finance or lease a vehicle, you will want to look into guaranteed asset protection coverage. Because collision and comprehensive insurance only cover your vehicle at market value, it may not be enough to pay off the car loan if your car is totalled. However, gap insurance pays the difference, so you don’t owe the creditor anything after a complete loss.*

* Standard T&C Apply

Compare the quotes from reputable car insurance providers.

Whether you're buying car insurance for the first time or looking to switch from your current car insurance company, it's a good idea to get quotes from multiple insurance providers. This can help you compare coverage and rates. 

Also, while it's important to remember that since car insurance quotes are based on your circumstances, what’s best for your neighbour might not be best for you. There are several insurance providers in India; Bajaj Allianz General Insurance Company is among the top vehicle insurance companies that provide complete coverage for accidents and damages due to natural disasters.* Moreover, car insurance from Bajaj Allianz General Insurance Company also provides personal benefits that offer financial support after severe injuries or permanent disability resulting from accidents.*

* Standard T&C Apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.

(To receive our E-paper on whatsapp daily, please click here. To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

Published on: Friday, April 29, 2022, 04:42 PM IST