5 things to know about car insurance

5 things to know about car insurance, if you are a beginner driver.

Types of policy available

There are two main types of car insurance policy available to choose from-

Third-Party insurance and Comprehensive car insurance
Both of these insurance types serve different purposes, which is why you need to understand your needs before you make the choice. Third party insurance protects you against damages caused to a third party while comprehensive car insurance provides you overall protection. You should analyze your situation and choose the policy that best suits your needs

Set the correct IDV

IDV stands for Insured Declared Value and it denotes the approximate current market price of the car. You can set your IDV amount and that will thereafter become the amount of claim you can get in case your car gets stolen or incurs a total loss. It is important to set the limit correctly since a higher value will increase the premium and a lower value will reduce the claim amount you will get in the future.

Choose the right Add-ons

Add-ons are additional features that are available to choose from which will give you and your car protection in specific situations. There are many different add-ons you can choose from and the cost of these get added to the cost of the premium. This is why you must choose only the add-ons that are suitable for your situation. Adding add-ons unnecessarily can add to your premium cost without adding value to your actual coverage needs. Some of the add-ons available are Zero depreciation, Return to invoice or Engine protection add-on.

Deductibles reduce the premium payable

To keep the motor insurance valid, you are liable to pay a certain amount as the premium. There are various ways through which you can reduce this amount. A deductible is an amount that you agree to pay when you file for a claim. In such situations, setting a deductible amount reduces the premium payable but when you file for a claim the amount available to you reduces.

Timely renewals

You must renew your motor insurance policy before the expiry date. If you fail to do so, you are not only no longer protected by an insurance cover but you also stand a chance to lose on various accumulated perks. You should get in touch with your insurance provider to know the renewal dates. Most insurers are diligent in sending reminder messages – simply ensure you keep your communication details always updated on their records so that you don’t miss any important alert.

These are a few basic things that will help you get started on your journey to get yourself and your car insured. A motor insurance policy can help you go on stress-free drives while keeping you safe.