Ques: What hidden things I need to be aware of in selecting a Insurance Policy?
First of all you have to choose between comprehensive policy and zero depreciation policy. Zero depreciation covers are more advantageous as they offer 100% coverage but they come with higher premium and there is limit in the number of claims per year as well. Furthermore, zero dep covers are offered to only cars up to 7 years old. So, in case you can’t avail Bumper to Bumper cover, comprehensive plan would be your best bet.
Once you choose the right type of car insurance plan, you have to pay attention to aspects like Voluntary excess, IDV and personal coverage while selecting a car insurance policy.
Voluntary excess is also known as voluntary deductibles. Over this amount, car insurers pay the claim. You can reduce the premium by as many as 30% if you opt for voluntary excess and take care of small damages yourself.
You should be aware of the actual IDV of your car at the time of buying car insurance. You should not engage in the practice of reducing IDV for the sake of lower premium. Instead, you should try and choose a policy that offers maximum IDV on your car, even if it the policy comes with a bit higher premium.
Regular comprehensive policies offer personal accident coverage for the owner only. You can also include additional users under the coverage for extra premium.