Buying a car is a huge investment and no one would like to bear the expenses of damages. It is thus essential to invest in an auto insurance that offers coverage for different kinds of damages, theft and third party liability. As there are several insurance providers, you need to be careful when buying a policy. You need to take a look at several factors and ensure that the car is vehicle is completely covered.
Some essential things to consider are further discussed in the article.
Under the types of insurance – There are two kinds of policies. These include:
- Third party liability – This policy covers the damages caused to another party with the vehicle. Thus if an unfortunate accident happens, the damages of the other party are covered.
- Comprehensive coverage – This policy covers all the damages that can be caused to the vehicle due to theft, fire, explosion, natural calamities, accident etc.
You can also club both the policies into one. So, when buying insurance ask the service provider about the coverage in detail
Insurance premiums – the premium rates are quoted based on your credit score. If you have a good credit score, you will get the insurance at low premium rates. So, make sure that you pay your bills and loan premiums on time.
Add a personal accident plan – With the rate of accidents increasing day by day, it is better to a personal coverage as well. It will cover accidental death, disability – total or partial, etc. This plan can be added to the policy with ease as there is no documentation or medical reports required. Also, the coverage offered is worldwide.
No claim bonus – You are liable for a NCB is you haven’t claimed your car insurance for at least one year.