Things to Keep in Mind When Buying Car Insurance

The majority of car owners narrow down their auto insurance options on the basis of the premium costs. However, that’s not the best approach. This is because you can end up paying a large amount of money from your own pocket for the damages due to inadequate coverage.

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The following are some of the most important things to keep in mind when investing in a car insurance cover:

Third-Party Insurance

Every car owner is required to have a third-party insurance as per the Motor Vehicles Act. This is the bare minimum you need to invest in. However, it’s not something you should settle for as this only covers the damages caused to some other person on the road due to your car.

Comprehensive Insurance

A comprehensive insurance comes with the third-party insurance but also offers additional coverage such as:

• Personal Accident Cover: This covers your personal injuries and car damage.
• Zero Depreciation Cover: It ensures that your provider covers all car damage costs without considering the depreciation factor. In other words- in an event of a car accident, you will get the full amount for the repairs from the insurer.
• Engine and Electronic Circuit Cover: As the name suggests, it covers the damage to your engine and circuitry caused by floods, etc.

Add-On Options

Many auto insurers offer add-on products (such as the ones above) that you can adjust with your base cover. So, instead of paying a large premium for multiple coverages under a comprehensive scheme, you can pick only those that you think are worthy of investment.

Car Customization

If you are customizing your car only for cosmetic purposes, then you should be fine. However, if you are making some hardware changes such as engine modifications, then it’s a good idea to check your insurance T&C first so as to prevent the nullification of your coverage. It’s even better to talk to the insurer directly before making any changes to your car.

Car insurance has many uses. However, unless you compare quotes and identify the types of secondary covers you need, you can’t find the perfect policy for your car.