One time comes in a year when we need to renew our car insurance policy.
So, it becomes very important to understand what these companies are selling us in their plan.
So first, let’s talk about the major points or parts in which car insurance policies are divided.
1. The most important is third-party insurance, which is mandatory to buy for any vehicle in India as per law.And what is that? It is the claim to the person or vehicle to whom you damage while driving a car. So that’s why it is third-party; it benefits the third person or vehicle you hit.
2. Second is the own damage premium, where if you damage a car by yourself, if you do a self-injury to the car, if your car gets stolen by someone, if it is damaged by natural calamities, etc.
So generally, most companies provide a comprehensive car insurance policy that contains both third-party insurance and their own damage.
Apart from this, there are many add-ons you can buy to protect your car with other benefits.
Now here comes one important add-on that is very important for any new car up to 5 years old: zero depreciation or nil depreciation.
When we talk about zero depreciation, it provides insurance up to bumper-to-bumper. Zero depreciation means that when your car gets damaged and some parts need to be repaired, at that time, if that part is 3 years old, you will get the amount for that part on the basis of that depreciation value, but if you have adopted zero rep, then you will get the full amount of that part, as if it were a new piece, because you have opted for zero depreciation. You don’t have to pay for your vehicle’s depreciation.
Talking about other add-ons, they can be important according to your needs and how luxurious your car is.
So the list is consumable add-ons related to screws and nuts, tyres and tubes, and roadside assistance that is also taken into consideration if your car is old and you are pushed into a situation where the car suddenly stops working on some highway, etc. And you need some immediate help to get it there.
Add-ons are many more engine protection covers and loss of personal belongings. As you add more add-ons, the cost of the policy increases.
Last, always get your idv value of the car, as according to market value, that can be identified with your last idv value. Let’s suppose the last idv value is 4,00,000 lakh, so for this year, your idv value will be 10% less than 4,00,000 lakh
It will be 3,60,000 lakh.
Last, try to take insurance from a private firm, as they provide quick service.
