Planning to purchase a car? Then you would have conducted substantial research. Not only you, but your family members too. Firstly you must have planned your budget. Then you would have decided which type of vehicle do you need – a hatchback or a sedan or a SUV. If you are a petrol-head or an auto aficionado you would have also compared several technical specifications such as the type of engine, displacement offered, transmission, torque and many more. Your mother may prefer blue but your sister prefers black. You may also test drive different vehicles and watch several review videos. After considerable and thorough scrutiny, you would finally finalize the vehicle of your dreams. You are keen to welcome the new member of your family.
But wait! There are some formalities to be completed which include purchasing car insurance. And how do you purchase car insurance? Either you buy what the salesperson at the dealership recommends or you just find out the cheapest car insurance policy available and snap it up.
The story isn’t too different while renewing car insurance. You are most likely to renew the existing policy or purchase something cheaper.
Ever wondered about the comparison in the research done between buying a car and buying insurance for it? Is buying whatever convenient or cheap the only way out? Wouldn’t you want to have the best possible car insurance policy for your car?
Here are 5 important things to consider while purchasing or renewing car insurance
Insured Declared Value (IDV) – It is a good idea to be aware about the IDV of your car. IDV is nothing but the current market value of your car. It is the maximum sum assured that an insurer will offer on account of theft or total loss of vehicle. Each year, the value of your car depreciates and thus the IDV too. While renewing one’s car insurance, one might be tempted to insure the car for a IDV which is lower than the actual one to get the benefit of a lower premium. However in such a case, since IDV is less than the actual depreciated value of your car, in case of total loss or theft, the insurer will only pay the IDV. This means you may lose out on a certain amount since the actual value of your car was higher.
Purchase Comprehensive Vehicle Coverage – As purchasing liability cover or third party insurance, as it is popularly known, is mandatory as well as cheap, car owners are likely to ignore the purchase of a comprehensive cover. The comprehensive vehicle coverage offers a wide range of coverage options to the owner-driver. It also covers against man made damages and natural disasters.
Explore various brands: One would do well to evaluate what different brands have to offer when it comes to purchasing comprehensive vehicle coverage and not just go with the cheapest offering..
Network Garages: It is critical to figure out the insurer’s coverage of network garages. If you are likely to be driving between different cities, you may wish to check whether the network garages are available in all these cities. You may also wish to check whether one is near your house. Getting your vehicle repaired in a network garage will enable you to file for cashless claims.
Customizable add ons – One must consider Add Ons. Especially if one can customize them. Several insurers offer upto 5 to 6 add ons. However, is that enough for your car? What if you are based out a city which floods due to incessant rains such as Mumbai or Chennai. In such a case, wouldn’t it be prudent to have an add on that protects the car’s engine which is mostly likely to be damaged when such an event occurs.
Personal Accident Cover – Disability or death in the case of an unfortunate accident could lead to a position where your dependents could struggle financially. Even though you may have purchased term or health insurance, the personal accident cover will strengthen the financial position of your dependents, albeit temporarily.
Keeping these points in mind while purchasing or renewing your car insurance will ensure that you have the optimal plan instead of the cheapest one. New age insurance companies are attempting to change the traditional behavior of buying motor insurance. COCO by DHFL General insurance is one such pioneer in the new evolving “Insurtech” space and has been making waves since its launch. COCO recently launched their new comprehensive four wheeler insurance policy – COCODrive – that is India’s first customizable a-la-carte policy. Unlike the traditional insurance companies that offered rigid, pre-bundled policies, COCO allows users to select the add-ons that are most suited to their requirements – and in turn pay only for them. With a range of 19 add-ons, COCO is the only digital insurance company to provide the highest number of add-ons as most companies only provide 5-6 add-ons.
With such simplification of the insurance buying process, there is no reason to not pay complete attention while selecting your next Four Wheeler insurance policy.