Car insurance is one of the most important necessities you need before driving a vehicle on the roads. The insurance has to be selected in such a way that it meets your needs and offers the coverage you need within a stipulated budget frame. Numerous car holders go for car insurance without any deeper knowledge of it. Mostly, customers think of low premium insurance charges as the only determining factors while opting a car insurance product. This means having inadequate safety cover during an unfortunate accident or damage to the car. Apart from that, one must be conscious of all the facilities included in the car insurance of the seller before confirming the insurance cover. Pondering a little knowledge of a variety of car insurance available, you can optimize your insurance procurement and relish better benefits. If all the insurance covers are applicable to the buyer, then he may go with the same provider for the renew of the insurance.
To acquire the best benefits for a Used Car Insurance you need to follow the listed factors:-
Insured Declared Value
Insured Declared Value of a car generally means the insurance depending on the time of the car purchased. The IDV value for a car before one year will be more than that of the value of the IDV after the few years, The IDV of the car also be a factor for the claim in Car insurance premium through a motor insurance policy. So you must choose the insurance provider with greater benefits based on your car life. Current Value and the depreciation value of the car also depends on the IDV of the car.
Transferring the Policy
While Transferring the policy from the seller to the buyer, the no claim bonus should be kept in mind, which means that if the seller has not claimed in the previous year, a discount in the premium is provided to the car owner. If these are not paid attention, it will turn into an expensive insurance amount to the buyer.
No Claim Bonus
No claim bonus generally varies from 20% to 50% depending on the number of claim free years of the car owner or the seller, if any no claim bonus is applicable, it must be taken by the seller before the policy is transferred to the buyer as it will reduce the premium renewal charges a lot to the buyer. The no claim bonus can be claimed within a time period of 3 years.
Clearance Certificate By The Seller
The seller should give a written document to the insurance company for the transfer of the vehicle and the insured person to the buyer. The IDV value should be mentioned as it is, as reducing the IDV will decrease the charges, but it will also decrease the claim amount while an accident to the car
Voluntary reductions help you in reducing the Car insurance premium charges. This actually means that you will be sharing some percentages of the repair charges in an unfortunate accident and can be claimed through the insurance policy. This is a beneficial step to reduce the insurance premium charges or renewal charges if affordable by the buyer.
Value-Added Insurance Covers Depending On The Risk Profile
Based on your traveling plans or the risk profile additional Insurance Covers should be purchased for better security while unfortunate accidents if not included in the seller’s insurance profile. If you travel late nights very often or travel through dangerous Roads, Highways, isolated stretch of Road, you should probably opt for additionally added insurance covers. This will surely provide you with additional security with better benefits.
Overlooking The Personal Accident Cover
Personal Accident covers are one of the most important insurance covers for better protection while regrettable or unfortunate accidents. This will ensure you for bodily damages, disability or even death while in your car accident. Depending on the Seat capacity of your car you can also be benefitted for all the other travelers whilst the accident.
Insurance Premium Based On Cubic Capacity And Traffic In Your Area.
The car insurance providers also consider the cubic capacity of the engine and the location at which the car is to be mostly driven. For instance, if the buyer is a resident in an urban area or metropolitan area he needs to pay a greater amount for the premium. If he belongs to a rural area, Car insurance premium will cost lesser then the Urban area.
Uncovered Cases In The Insurance Plans
Any insurance policy can’t cover all the damages, and the insurance provider will not bear all the damages. Many insurance policies don’t cover the damage occurred to the car by another car or person. It should be clearly mentioned the accident scene while you claim your insurance. It doesn’t cover if you are drugged or in an inebriated state, and the accident occurs. If the damage is caused by any other person who doesn’t hold a driving license, then the insurance can’t be claimed. These are some of the cases that are not covered in a car accident.
These are some of the most important things to keep in mind while taking insurance for your car and ultimately before finalizing you must have basic knowledge on all the factors covered and not covered in the insurance plan.