When a person purchases car insurance, they get protection against unforeseen events such as accidents. A car insurance plan offers financial assistance to policyholders to repair the damage their car has suffered due to an accident or a natural or human-made calamity. Insurance is provided in two forms, third party insurance and a comprehensive plan.
Third party insurance only covers the damage to the third-party property. However, a comprehensive policy covers the expenses of damage to the other party property as well as the policyholder’s car.
While car insurance offers financial protection against accidents, it also covers natural and human-made calamities. The insurer covers natural calamities such as earthquakes, floods, etc. The policyholder also gets financial assistance against human-made disasters such as theft, riots, terrorism, burglary, etc.
Insurance is a vital component in protecting your car. Hence, it is important to pick the right one. The first step while buying a policy is comparing different plans. It will help you understand the benefits and the premiums of different policies.
Here are some important factors that you should keep in mind while buying a policy-
- Policy type
There are two types of policies offered by the insurers, third party insurance and comprehensive plan. While third party insurance only covers damage to third-party property, comprehensive car insurance provides financial assistance to repair the policyholder’s car as well as the third-party property.
One of the most critical factors that impact car insurance policy is premium. You must consider your budget and look for a policy that offers you the most amount of benefits at an affordable premium rate.
- Insured Declared Value
Insurers offer cover as per the insured declared value of a car. If a car gets stolen, then the policyholder will be provided cover based on the IDV of the car. IDV can be different from one buyer to another. A person should look for an insurer that offers a higher insured declared value of the car.
Add-ons are the additional benefits that a person can purchase with a policy by paying extra premium. Some important add-ons are zero depreciation cover, return to invoice, etc. If a policy buyer has a higher budget, then they should opt for more add-ons while buying car insurance as they can increase the cover of financial protection.
The easiest way to look for different policies is to compare car insurance online. Comparing the policies online can save time as well as efforts. Without having to visit the offices of the insurers, a person can become a policyholder online in no time.
If you are on the lookout for car insurance, then consider HDFC ERGO. Here are some of the crucial benefits that the insurer offers-
- HDFC ERGO offers third party plan as well as comprehensive car insurance. However, a comprehensive policy provides better protection as it covers third-party property as well as the policyholder’s car.
- If there is an accident, then the insurer also covers the expenses of medical treatment due to bodily injuries.
- The insurer offers financial assistance against damage due to natural calamities such as floods, earthquake, storm, etc. It also covers the policyholder against human-made calamities such as theft, burglary, etc.