When you buy or renew you car/bike insurance, you are most likely to get the value for money if you follow 5 simple essential steps.
- Check your IDV – The Insured’s Declared Value (IDV) is the value of your car or bike that you are insuring for. The Own Damage (OD) premium is always a percentage of IDV. So, your vehicle insurance premium will vary based on the IDV that you choose. More so, it is important that you choose the right IDV to ensure you are compensated appropriately in case of an adverse total loss or theft of your vehicle. Know more on importance of IDV…
- Check and add essential covers – Apart from OD Premium, the other part is the Liability premium that includes Third Party Liability Cover, Passenger Cover, etc. Though TP premium is compulsory, you also have to add other essential covers like Legal Liability to Paid Driver if you employ a driver and Passenger Cover which will compensate for any injury to your near and dear ones in case of an accident.
- Look out for relevant Additional Covers – It is very important that you choose all the very essential additional covers that are applicable in your case. For example, if you live in low lying areas, where easy flooding is possible during rains, you should add ‘engine protect’ cover for your car as there is a high chance of damage to engine due to ingress of water. Likewise, each additional cover will have to be chosen as per your requirement.
- Compare premiums with the chosen covers – After completing the first three steps it is quite meaningful to do a comparison of premiums vs benefits chosen. The following points are notable during comparisons:
- All insurers may not accept the IDV or all the additional covers you choose.
- The pricing for Additional Covers will differ with Insurers.
- The premium pricing with OD discounts will vary with individual claim experience of every insurer based on Make, Model, Variant of the vehicle and Geographic Zone of registration.
- It is also important to compare the premiums every year because, the rate of discounts in premiums are likely to change based on claim experience of the Insurers.
- Review the Insurer – You will definitely have your preferences about Insurance Companies. But, it would be better to review it once in a while based on their claim settlement ratio, network garages and if available, your own previous experience. By far, in India, all insurers adopt proper standards in vehicle insurance claims settlements. But, improvements in technology, processes and procedures within the Insurer’s system could be a boon or a bane for a customer. Apparently, an expert broking company on your side will keep your claims settlement smooth.
Note: Also look out for Additional Discounts – Insurance companies offer additional discounts if you are a member of Automobile Association of India (AAI) or if you have a standard anti-theft device fitted in your vehicle. Wherever applicable, you can avail of these additional discounts.