Car Insurance Secrets That Will Help You Buy The Best Car Insurance Policy

• Protect yourself with third party or comprehensive cover
• Use bumper to bumper policies to reduce your liability
• Enjoy facilities like zero depreciation and roadside assistance covers

You can opt for the following to avail the best policy that serves your insurance needs and falls within the budget:

• Compulsory deductible

A compulsory deductible is a part of the insured amount that is mandatory of the policyholder to pay at the time of the claim settlement. The amount should be paid to the garage where the policyholder’s car was fixed, before the insurer provides his part of the claim amount. The amount to be paid by the policyholder is pre-set by the insurer in adherence to the Insurance Regulatory and Development Authority of India (IRDAI).

• A the deductible is embedded in the insurance policy, the insured cannot opt out of it
• Compulsory deductible is present to ensure that the policyholders do no make claims often, unnecessarily and this way encourages the drivers drive safely
• The amount fixed by the insurer for the deductible is higher so as to ensure that there are minimal claims raised by the policyholders.

Every policyholder should check the IRDAI website or take the advice of insurance experts to know the standard amount for compulsory deductible and buy the insurance that meets your insurance needs and is well within your budget.

• Consumable cover

The consumables present in the vehicles, such as oils, coolants and grease are usually excluded from the insurance coverage. But in case, you want to include them in your coverage you can opt for the consumable cover add-on cover with the comprehensive car insurance, which will reimburse you with the amount pertaining to the cost of the consumables post an accident.

• Zero Depreciation cover

Depreciation is the loss in the value of your car as it ages. The depreciation charges varies depending on the make and model of your car, the accessories, etc. and on the car insurance policy you have opted.

Usually, at the time of a mishap, the insurer will give you the insured amount after deducting the depreciation charges. The insurance companies consider depreciation of the car parts, such as parts made of metal, plastic, fiberglass, etc. Whatever is the amount that has been deducted from the insured amount due to depreciation, you will have to make up for that amount yourself. To avoid this, you can opt for the zero depreciation cover. The cover will ensure that you receive the full claim amount without the deduction of the depreciation charges on the car parts.

This way the insurer will cover the complete cost of repair or replacement of your car parts at the time of a mishap. You can only raise two claims using this cover during your policy period and the add-on cover is available only for new vehicles that are not older than 5 years.

• No Claim Bonus (NCB)

A No Claim Bonus is a discount on the insurance premium awarded by the insurer to the insured for every claim-free year.

The NCB belongs to the vehicle’s owner (policyholder) and not the the vehicle. Therefore at the time of renewal or change of the policy, the policyholder can transfer the accumulated NCB to his/her new insurance policy. You can accumulate the NCB for 5 consecutive years, starting from 20% and increase to a maximum of 50%.