Ways to derive maximum out of your car insurance

By Mukesh Kumar Jan 25 2011

Tags: Insurance
For most of us owning a car has been a dream that we have nurtured since childhood. Once we own it – it becomes our most prized possession.

Like all other assets, your vehicle also needs to be protected against various threats, especially accident and theft.

Motor insurance is the simplest and cheapest way to protect your vehicle from unforeseen circumstances and mitigate the risk of monetary loss. In India, it is mandatory to have a ‘liability only’ motor insurance for your vehicle and all general insurance companies provide this with various riders.

The primary need of car insurance is to provide protection against losses incurred as a result of road accidents and against liability that could be incurred in an accident. Thus, one should watch out for below mentioned useful tips to get the maximum out of your car insurance.

When it comes to deciding the insurance value of your vehicle, ensure that it is covered for an appropriate amount reflecting fair market value. Ideally, your vehicle value should be the present ex-showroom price less depreciation.

This would ensure

that in the event of a total loss, you have the ability

to purchase a similar vehicle with the insurance proceeds.

Do read the policy terms and conditions minutely to avoid last minute surprises. With few policies, you could also avail discounts based on the age and profession of the registered owner of the vehicle. You are also entitled to a ‘no claim bonus’ for every claim free year upto a maximum of 50 per cent.

Ensure that you opt for personal accident cover for passengers as well as paid drivers, which is an optional cover and available at an minimal additional premium. There are also specialised add-on coverages available.

Zero depreciation cover: This cover pays for the depreciation of part for partial loss claims, which means that you will have minimum out-of-pocket expenses in the event of an accident.

Loss of use cover: This gives a daily benefit for each day that the vehicle is in a garage following an accident, claim being admissible under the own damage part of the policy.

No fault claim protection: Protects the no claim bonus accrued, in case of losses on account of specified perils, such as damages due to flood and windshield damage.

Emergency assistance cover: This provides a number of emergency services, if your vehicle is stalled. A few basic assistance services provided are towing, battery jump start, fuel delivery, minor repairs and the like.

These are just the basic benefits, but every person wants a car insurance policy with maximum amount of benefits served at a minimum cost for the insurance cover.