Looking To Switch From Third-Party Only To Comprehensive Car Insurance? Here’s All You Need To Know

Firstly, it is mandatory to purchase at least a third-party car insurance policy for every vehicle plying on Indian roads as per the Motor Vehicles Act, 1988. Therefore, many people end up buying the basic cover, without realizing that this might not be sufficient and leave you vulnerable to expenses that arise from repairing the damaged vehicle. If you wish to extend your cover, you will have to switch to a comprehensive policy.

Given below are a few points that you should be aware of before making the switch:

  1. Coverage offered

This will probably be the main big switch and the reason why you would be switching policies. A comprehensive policy will provide you coverage for own damage. Several factors can cause damage to your car, such as natural calamities, vandalism, riots, fire, etc. The comprehensive policy also offers theft coverage. In case your car gets stolen, you will have to notify the insurer and contact the police immediately. If a non-traceable report is issued by the police, it means that your vehicle was not found and you will receive the claim amount from your insurance provider.

  1. Deductible amount

This is the amount borne by you at the time of claim. Under a car insurance policy, you have two types of deductibles- Voluntary and Compulsory. The Voluntary deductible can be paid as per your wish, and it will reduce your policy cost. Know that you are promising that a part of the claim amount will be borne by you voluntarily and agree to get a smaller sum of money during the claim. On the other hand, the compulsory deductible is the sum you must pay at the time of claim settlement, as it is a negligible amount.

  1. Policy Cost

A third party car insurance cover offers coverage for damages caused to the third-party only. If you switch to a comprehensive policy, your damage will be covered, along with third-party liabilities. The scope of coverage increases, and so does the cost of your car insurance policy. The final cost of the policy is determined based on factors such as add-on covers (if purchased), make and model of your car, and the insurance company that you’ve opted for.

  1. Insured Declared Value

Insured Declared Value (IDV) is basically the current market value of your vehicle. This price determines your car insurance policy’s cost. In case of damage caused or your car gets stolen, the maximum amount will be paid by your insurer. Therefore, setting the correct amount of IDV is essential when you’re purchasing the policy. Also, note that you will receive less money than you are liable for getting if the lower amount is set. Whereas, if a higher amount is set, you must pay more premium for purchasing the policy.

  1. No Claim Bonus

On car insurance renewal, you will be awarded the No Claim Bonus (NCB), if you don’t file a single claim against your comprehensive policy during the entire policy term. This particular concession will only be available when you renew your car insurance policy and not while purchasing, or if you have a third-party liability policy.

Take a look at the steps to switch from third-party to Comprehensive Car Insurance Policy:

  • Visit your preferred car insurance company’s website
  • Go to the car insurance page
  • You will then provide them with your car number
  • You can leave the previous policy number blank
  • Go ahead and purchase the comprehensive policy
  • Decide on the Insured Declared Value and set it
  • If needed, purchase additional covers (add-ons)
  • Make sure to go through the terms and conditions of the car insurance policy thoroughly
  • Pay online using the preferred payment method

If your insurance provider wants to inspect your car, you will be provided with a date of inspection. And if you are accepted, you’ll receive the car insurance policy in a few days.

In case of any other queries, you can simply contact your insurance provider but never drive without a valid car insurance policy.