How to select a right car insurance plan?

Posted by sanjay on June 1st, 2017

Trouble comes uninformed hence even an experienced driver cannot avoid the risk factor while driving. Even a minor accident or a slight bump on the car can result in the heavy repair costs. The only way one can be prepared against such circumstances   that can cause heavy losses is to buy a car insurance policy. Car insurance covers the individual against the losses that might occur due to theft of the car or damage due to accidents and even natural calamities. Each month or annually the person pays a certain amount to the insurance company and he gets a sum assured when needed.

When an individual buys a car, buying a car insurance policy is mandatory. It can be tricky if he is unable to choose the right cover and the right insurance company. To help an individual find the right plan, here are some outlined steps that he needs to follow:

• Understand and assess: before an individual buys car insurance, it is essential to understand the two main categories of insurance which are the third party liability insurance and the comprehensive insurance. The next step is to wisely analyze and then decide the amount of cover that an individual would require.
• When he is deciding the cover of the car, he needs to be sure that he has covered the amount equal to the total value of the car. Being underinsured is unsafe; paying high premiums unnecessarily can also be heavy on the pocket.
• It is wise to compare the quotes before buying the car insurance as it can save huge amount of money and provide better coverage options. Also the comparison sites allow the details about the car insurance which are offered by the various insurance companies. Here you can read about the financial track record and the claim settlement ratio of the insurance company.

• The individual needs to constantly look out for discounts which can substantially reduce the burden of the premiums.  Factors such as good driving record, gear lock;anti-theft system and safety equipment’s can reduce the insurance premium by 5%. Ads these features ensure the enhanced safety of the car, it reduces the cost if the insurance company and the benefit is carried forward to the consumer. So be sure that you have all the available options and the minor details about the car while buying your car insurance policy.

• The premiums of the car insurance are decided on the basis of the insured declared value of the vehicle you own.  Undervaluing the car create issues while claimingtherightamount of the cover of the loss that has incurred. In case of accident the car you own can be treated as a complete write off. A high IDV means a person has to pay higher premiums and lower IDV means he has to pay lower premiums. But it is advisable to avoid the practice of reducing the IDV of the car he owns to save on the premium.