Buying a car with the best insurance policy is consideration of many buyers. And for some, they don’t pay heed to it at all. By measuring the perception of people while buying a Car Insurance Policy, we can divide the customers into two section; the one who is very concerned about particulars like policy and all and another who accepts everything offered to them with blind faith. The sole purpose of customers behind buying an insurance policy is to get maximum coverage under minimum cost.

Here is the article based on what you need to look into a car insurance policy before going to buy it and How To Decide The Best Car Insurance Policy?

Decide Type Of Policy

The policy can be ‘Third Party’ policy or a ‘Comprehensive’ one, so you need to decide which suits you perfectly. The ‘Third Party’ policy covers damages rendered to a third party or who doesn’t own any coverage under any car insurance policies. For instance, in an accident, if the damages are done with another occupants’ vehicle, the other owner receiving damages will get the reimbursed amount not you. Under the third-party policy, the damages done with your vehicle will be borne by you only.

Furthermore, under the ‘Comprehensive’ policy coverage, both kinds of damages to your and third party are covered.

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Insured Declared Value

The IDV is an important factor concerning the premium paid on regular basis for the insurance policy. Many owners consider IDV on the basis of a lower premium, generally in case of expensive cars. Car insurance companies have frequently emphasized this action, which generally outcome in a big financial shock in the deplorable case of an overall loss. In case of a vehicle is being written-off, the value is repaid to the owner. If the owner has decided to go for small IDV payment, then he will leave with a big loss in terms of finances.

No-Claim Bonus

While going to purchase a car insurance policy, the smart buyers know how to get back their premiums. The ‘No-claim Bonus’ or NCB is the term they consider before proceeding with a car insurance policy. In general, words, while renewing the policy, insurers provide some discounts for not claiming the return in the preceding year. This can be taken as a reward to a motorist for driving safe during the year. Gathering over time, it reduces the premium payment up to 50%. Even it is possible to transfer the NCB to a new car purchase. So, by using this policy smartly, your sum can result in big savings on insurance purchase.

Voluntary Deductibles

It is also another way to pay for small premiums. Insurers also give rewards to owners who put off small claims for their money along with premium rebates. So, paying for small things like minor scratch repairs can lead to saving up to 30% on premium.

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Why Is Insurance Compulsory On Vehicles?

Whether its India or any other country taking car insurance is compulsory and not an option to decide over. According to the Motor Vehicle Act of 1988, all vehicles are required to register under the particular insurance policy in order to drive on the road. At the time of riding, legally, the driver must have a valid driver’s license, the registration of the vehicle, and insurance coverage. In any case, at least you should carry a third party legal liability insurance before plying on the public road. A third party liability policy will cover damages caused to a third party owner in an accident and the one has been damaged or injured in terms of property and persons.

Violating these provisions under the Motor Vehicles Act can cause a penalty or a serious result to an owner.

Violation of this act can render following penalties:

  1. Person found guilty will get the license suspended
  2. Non-compliance with rules can even lead to cancellation of vehicle’s registration
  3. A violation of the rule can also attract a penalty of Rs. 1000 and also imprisonment to defaulter up to 3 months