According to the Motor Vehicles Act, 1988, every car owner must buy a car insurance policy in India. When you purchase car insurance in India, you must research extensively and analyse in order to select the right option for you. There are many options available, as the insurance market is flooded with policies that offer various features. Make sure to choose a car insurance plan that suits your needs and budget.
Another important factor to consider while buying car insurance is the type of insurance coverage you are looking for in your car. People often get confused between a comprehensive insurance policy and a third party insurance policy.
Given below is the basic difference between these policies:
- Comprehensive car insurance plan
In a comprehensive car insurance plan, complete protection is offered against the damages caused to your car due to an accident or a road mishap. It provides coverage for the damages to your car, third-party legal liability and theft. It also provides personal accident coverage. Hence, it is called a comprehensive plan.
- Third-party Car Insurance Plan
Coverage against any legal liability is provided by a third party car insurance plan. In this plan, any damages and injuries caused by the insured vehicle, to a third-party person or property are covered. However, every motor vehicle owner must buy at least third-party insurance coverage in India, according to the Motor Vehicles Act, 1988.
- Car insurance renewal
The tenure of a car policy varies according to the plan you have opted for. Post expiry of your policy, you must renew it in order to continue receiving the benefits. In case you do not forget the renewal date, the insured will get a call or SMS from at least 21 days before your car insurance renewal date. They will let you know when your policy will auto-renew or expire.
Below are 3 reasons to consider that will help you know when you should make a switch:
- Rising Premium Rates
Purchasing a car insurance in India is an easy affair. However, insurance buyers are not aware of how insurance companies calculate premium rates. Premium rates will differ from person to person based on the IDV of their vehicle.
- Insufficient Additional Covers
There are times when basic comprehensive car insurance won’t cover you against all the risks that you need protection for. Various additional covers are offered by many car insurance providers to provide you with full-fledged service. These same add-on covers enhance your insurance coverage. In case the add-on covers offered by your insurance plan do not fulfil your insurance needs, you are free to switch your car insurance plan.
- Bad Customer Support
Every buyer would want good customer support. In case of unfortunate events like accidents or theft, you would want your insurance company to help you resolve the problem as soon as possible. If your insurance company is not providing an adequate amount of support and service in the hour then you should certainly consider switching your provider. It is also the right time to change your car insurance company.
Given above are a few cases wherein you must think and decide to change your current insurance company. If you think, you can get better coverage then go for it. However, when you decide on changing your insurance company for any reason, make sure to inform your current provider beforehand. Also, explore the market so you can compare policies as well as select the right insurance company to cater to your needs. Always keep in mind your insurance expectations and make a wise choice accordingly.