Owing to safety, the Motor Vehicle Act of India has made “Car Insurance”, also known as Third-party Liability Insurance, mandatory for all the car owners across India. Usually, it covers damage or theft caused due to external factors, and sometimes internal too.
But choosing the right policy for your car is a critical choice to make. Here are a few things that you should know while opting for a policy or renewing an old one.
Did You Claim or Not?
A ‘No Claim Bonus’ is a bonus that gives you additional benefits like lower premiums apart from your routine benefits. The catch here is that you can avail it only if you haven’t claimed your car insurance bonus last year, and are willing to revise it in the upcoming year. Hence, if you have a new car and haven’t claimed it all year, it is time to claim the No Claim Bonus.
High Premium or Low Risk
The nature of your work primarily defines the type of car policy you should opt for. For example, if you are a car driving enthusiast, you should opt for a high risk and high premium car insurance policy as you will be more inclined to drive to far off places frequently. On the other hand, if you are not much into driving, you can opt for low risk and low premium car policy as you might not drive that often.
IDV – The Vehicle Value
The value of your vehicle depreciates as the time passes. Basically, the more time you own a vehicle for, the more its value depreciates over time. This further affects the Insured Declared Value (IDV) for a car insurance policy. Thus, before opting for any policy, ensure that you get the deserved value for IDV as most car insurance policies offer a low imbursement.
Beneath the Bonnet
The car insurance policy you buy is often determined by the capacity of the parts present beneath your bonnet i.e., the engine of your car. Basically, your car premium remains the same for a few years. So does your No Claim Bonus. But as the age of your car increases, the engine capacity starts decreasing. This further affects the performance of your car, and so the premium of your insurance.
Purpose of Vehicle
Ultimately, the decision of which car insurance to buy depends upon the purpose of your vehicle and the car you buy. If you are buying a car for routine use then the regular car insurance can be truly beneficial for you. Whereas if your enthusiasm is the reason behind your purchase, then a full-fledged insurance is the best bet.
Furthermore, the type of car you own also determines your choice. A pre-owned car with No Claim Bonus can be an ideal choice in this case. It also asserts that the car is well-maintained and has given the best returns. Download the Kuwy app for best deals on car finance of verified pre-owned cars. We verify them thoroughly via Kuwy Car Check, and speedy auto-finance solutions can help you buy a car in a short period of time at the best rates. Know more about us on www.Kuwy.in.