Finance

How To Switch to a Comprehensive Policy form Third-Party Car Insurance?

It is mandatory to buy a car insurance policy in India, as per the Motor Vehicles Act, 1988. You must have at least a third-party cover. However, it won’t cover all the expenses, such as repairing your damaged car. If you already have this cover, you will need to switch to a comprehensive policy to avail sufficient coverage.

Keep reading to know all about making the switch:

Procedure to switch from third-party to comprehensive car insurance

A Comprehensive policy offers more coverage than a third-party policy. The process to switch from the basic third-party car insurance policy to a comprehensive one is not very complicated. Mentioned below are the steps for switching:

  1. Go to the car insurance company’s website
  2. Next, you will have to go to the car insurance page to continue
  3. You will see an option to enter your car number
  4. The previous policy number must be left blank
  5. Go ahead and buy a comprehensive policy
  6. You will then need to set the Insured Declared Value of your car
  7. Now, you can proceed and purchase any additional covers as per your requirements
  8. Do not forget to read the terms and conditions of the car insurance policy thoroughly
  9. Lastly, make the payment

The insurer might ask for an inspection of your car and will want you to select a date for the same. If accepted, the insurer will send your car insurance policy to your inbox in a couple of days. Every renewal might not require inspection. Buying car insurance policies online is very convenient.

Things to know before changing your policy

  • Policy cost

Under a third party car insurance policy, the offered coverage extends only to the third party, which includes liabilities related to third parties that are involved in an accident with your insured car. It provides coverage for third-party property damage, third-party injuries, legal liabilities that arise out of an accident and personal accident cover. However, own damage won’t be included under a third-party car insurance policy.

To include own damage along with all the benefits of third-party, switch to a comprehensive policy. With the increase in coverage, the cost of your car insurance policy also increases. Factors like make and model of your car, cost of additional covers, (if any), as well as the insurance company that is offering the policy, determines the final cost of the policy.

  • Coverage offered

If you’re switching to a comprehensive policy, own damage is also covered along with third-party damages. Several factors, such as vandalism, damage caused because of natural calamities, fire, riots, etc. can damage your car. All of this will be covered if you opt for comprehensive coverage.

  • Insured Declared Value (IDV)

The approximate current market value of your car is known as the Insured Declared Value (IDV). The IDV of your car will decide the price of your car insurance policy. Basically, it is the maximum amount that your insurer will be paying if there is any case of damage caused or theft of your car.

  • Deductibles

The values that you bear at the time of claim are termed as deductibles. Voluntary and compulsory are the two types of deductibles in car insurance. Voluntary deductibles can be paid according to your wish; it will reduce the cost of your policy. On the other hand, a compulsory deductible is a negligible amount that you spend during claim settlement.

  • No Claim Bonus (NCB)

If you don’t raise any claim against your comprehensive policy, you will be awarded No Claim Bonus, i.e. NCB. You will receive this at the time of the renewal of car insurance policy. NCB can be as high as 50% if you haven’t raised any claims and renew your car insurance for the 5th consecutive year.

Visit your insurance company’s website to get in touch with your insurer if you have any doubts concerning car insurance. You can also calculate your premium online with the help of a car insurance calculator. Then choose the best comprehensive policy for you and make the switch.

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