Unlike other types of insurance, buying a car insurance plan is compulsory in India. And this is something anyone who owns a car or wishes to own one knows. Even if you are not one of the two, you might have definitely come across this statement countless times. Due to the mandatory nature of the purchase, many people simply buy the bare minimum amount of coverage that keeps them from legal trouble. This coverage is a third-party car insurance policy.
If you are one of these people, you might have already realized that it covers another individual against physical harm or property damage. It does not offer coverage for repairs on damages to your own car. Hence, you might be considering upgrading the scope of your policy to include repairs for your own damages as well. You can do so by switching to a comprehensive policy. However, it is easier said than done. You have too many factors and nuances of the switch to consider before upgrading the policy. This article aims to tell you all you need to know before making the switch.
Switching from a third-party to the comprehensive policy
The actual process of switching from a third-party plan to a comprehensive policy is straightforward. The considerations you need to make before the process make it difficult. To make the process easier and guarantee that you do the switch right, you have to look at the difference between comprehensive and third-party insurance. More importantly, understand the differences between the benefits of both types of car insurance. Here is how you can switch from a third-party policy to a comprehensive approach:
- Visit the website of your car insurance provider
- Go to the car insurance section of the website
- Enter the registration details of your car.
- Select the option to buy a comprehensive policy
- Select the Insured Declared Value (IDV) for your car
- Select any add-ons that you need
- Check all the terms and conditions of the policy
- Make the premium payment
When you buy a comprehensive policy to cover your vehicle against damages, your insurance provider definitely checks the car’s current condition. For this, they might schedule a car inspection. Once the inspection is complete, you will receive your policy documents. After you have bought the policy, you will be asked to set a date for the review.
Factors to consider before switching
Cost
Coverage for own damage is not included in a third-party car insurance plan. But, when you buy a comprehensive policy, your own car will also be covered against any damages that it takes due to an accident. At the same time, the liability coverage of a third-party policy is also included. As soon as you decide to make the switch, the coverage scope increases. This means you get more comprehensive coverage; thus, you have to pay a higher price. For this reason, a comprehensive policy is more expensive than a third-party policy. The final cost you have to pay for a complete policy depends on factors like the make & model of your car, the cost of add-ons, and the process of the insurance company you choose. A car insurance calculator can be used to determine the premium for such a policy. * Standard T&C Apply
IDV
IDV is an abbreviation for Insured Declared Value. The concept itself is described as the maximum amount of money the insurance provider will pay for your car. It is usually the same as the current market value of your vehicle. This amount is given to the policyholder if their car is damaged or stolen beyond recovery. The IDV also affects your car insurance policy’s premium you would have to pay. Hence, it is essential to set the right amount as IDV while buying the policy. * Standard T&C Apply
With these things in mind, you can upgrade your insurance coverage smoothly during car insurance renewal.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
