Hyderabad: People are excited about buying a new vehicle. But before a vehicle hits the road, certain precautions have to be taken. The first thing is none other than vehicle insurance. Five years of third-party insurance for two-wheelers, and three years for cars is a must. People tend to make some mistakes while availing of policies. With proper homework, an appropriate policy can be chosen.
Driving a vehicle without insurance could attract fines. If something untoward happens, the owner has to bear all the expenses. Hence, under any circumstances, don't take out a vehicle until you have third-party insurance at least. Dealers of cars and bikes tend to influence policies from companies with whom they have a tie-up.
Comprehensive insurance provides compensation in case of accident or theft, otherwise, you could be in mess. Most people do not renew comprehensive car insurance on time, hoping that the third-party insurance would come to their rescue, which is not right thinking. Even if there is minor damage to the car, it will cost thousands of rupees for repair. It should be remembered that there will be no financial stress on our pockets if you we have a policy.
Also read: Things to consider before buying two-wheeler insurance
How much the car should be valued is very important. In most cases, the Insured Declared Value (IDV) is cut to reduce the auto insurance premium. This is the value given to your car when it suffers any damage. Maybe you can save on premium a bit, but you cannot claim full compensation for the damage. It is better to ensure appropriate IDV, which is considerable and adequate.
Sometimes, adding supplementary policies is a good idea. It will provide additional protection to a new car. These days some unnecessary add-on policies are also offered. So, it is better to tick an add-on that is beneficial to you. Particularly, zero depreciation could be one among them. Return to invoice cover, roadside assistance and engine protector can also be examined.
Choosing a low premium policy is not always advisable. A decision should be taken only after examining the services provided by the insurance company. If you are buying a new car by selling your existing one, check if no claim bonus is applicable. Then you may get some discount on insurance premiums.
