Choosing The Best Car Insurance Policy

Most of us are not sure about car insurance and its importance despite owning cars. Well, in a nutshell, a car insurance policy is defined as a policy that protects your vehicle. At the same time, it helps the policyholder during any emergency. Therefore, with car insurance in place, the car's dent, as well as finances of the policyholder, can be quickly taken care of. One thing that a car owner must remember is he/she should opt for car insurance that can easily be renewed and does not need much paperwork. Also, it is a good idea to go for protection that provides comprehensive coverage with facilities, such as add on coverage.

One of the critical things that one should be aware of when it comes to car insurance is opting for third party car insurance, which has been made compulsory as per the law. So, if somebody has a car, then the person must choose Third-party coverage. However, one should be careful while going for such policies; they should go for such plans that provide the best coverage against the damages. There are a variety of disasters, and they can be caused by theft, fire or collisions with other cars, etc. So, one should think prudently and select a car insurance policy that provides third-party coverage as well as gives the best protection for your vehicle. 

These are the basic things that a car insurance policy usually provides; however, there is some add on coverages that have proved to be very beneficial to the car insurance owners.

  • Every car is subject to depreciation, which diminishes the value of the asset. If an add-on coverage is availed, then it will save the additional costs that might occur due to shrinkage. This additional coverage can be availed for every part of the vehicle except the tubes and tires. The private cars can opt this add on coverage facility, thus allowing the insurer to get the maximum benefit and claim for at least two times in the entire span of insurance.
  • The policyholders are often given no claim bonus, which is as good as a discount. It is given when the policyholder does not claim during an entire insurance period. For many policyholders, the no claim bonus gets accumulated for a few years, thus giving rise to a lucrative discount that hovers between 20 to 50%. Most of the companies offer NCB to the customers, thus appreciating the driving behavior of the customers.
  • There is one more additional coverage, which is known as retention coverage of NCB. With the retention coverage, the safe driving behavior continues to remain protected even if the policyholder approaches the insurance company for settling a claim. 
  • Another coverage is providing for the expenses of consumable items like nuts, screws, bolts, and lubricates, and car insurance can cover the cost for them as well. 
  • One can also go for additional coverage on the engine that can save a lot of money too
  • Many people are still unaware of Key protection coverage. This coverage comes in handy during those times when someone loses the key or misplaces it. The coverage cannot recover the lost key, but it can compensate for the cost of getting a new key or a lock instead. To avail the claim, the policyholder must produce a copy of FIR when the key gets lost due to theft or any such similar incidents.
  • Accidents can happen anytime, and in such cases, the policyholder leaves the car with the workshop. He travels back without the car. One might avail the coverage, which provides an allowance for visiting daily to the car insurance company's garage or workshop for three days or more.

  Selecting the best car insurance policy:  While buying the car insurance policy, many seniors prefer to opt for the car insurance that offers third party coverage. However, some would suggest going for a comprehensive plan as it provides damage protection that can occur due to any unforeseen circumstances. 

The policyholder must be aware of some terms related to car insurance, like insured declared value and zero depreciation. 

Car insurance is a broad topic, so we should try to explore more to grown an in-depth knowledge about it. 

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Donald R.

Author for local newspapers and national magazines in the greater midwestern area, loves sailing with his wife Deb.

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