Are you tired of the limited coverage your third-party car insurance policy provides? Do you want to broaden the protection for your vehicle and yourself? Well, converting to a comprehensive policy might just be the solution you need! However, before making the switch, there are crucial factors you need to consider. In this article, we will guide you through the changes you must remember while converting to a comprehensive policy. We will also walk you through the simple process of switching your insurance policy and getting the coverage you deserve.
Consider Changes While Switching to Comprehensive Policy
When considering switching from a third-party car insurance policy to a comprehensive one, there are a few important factors to keep in mind.
• Premium cost:
A third-party policy only covers liabilities related to third-party involvement in an accident in car insurance. It includes third-party property damage, injuries, and legal liabilities. However, it does not cover the car's damage. Switching to a comprehensive policy offers broader coverage. Understandably, with an increased scope of coverage comes an increased cost. The premium cost depends upon factors like make and model, riders, age of the vehicle, etc.
• Coverage scope:
In terms of coverage, a comprehensive policy will protect your car from damage caused by natural calamities, fire, vandalism, and theft. If your car gets stolen, it is crucial to inform the insurer and the police as soon as possible. Make sure you obtain a non-traceable report from the police, as it is necessary during the claim processing.
• IDV is crucial:
When setting the IDV for your car, ensure that it is accurate and reflects the current market value. This is the maximum amount your insurer will pay in the event of theft or severe damage to your vehicle. Deductibles are key considerations because they are the amount you must pay out of your pocket at the time of claim settlement.
• NCB:
If you renew your comprehensive car insurance policy without raising a claim, you will be eligible for a No Claim Bonus (NCB), which helps in saving money on your policy premium. It can be as high as 50% for the fifth consecutive year of no claims.
Process to Switch Your Insurance Policy
Switching from a third-party policy to a comprehensive one is a great pick. The process is easy, and you can do this online. Let’s go over the steps.
- Begin by researching and comparing policies offered by various insurance providers. Once you have selected a provider, navigate to their car insurance page and enter your car number.
- Skip the past policy number section and proceed to buy a comprehensive policy. It is vital to accurately set the car’s Insured Declared Value (IDV) and purchase any additional coverage or add-ons you may require. Be sure to read the policy’s terms and conditions carefully before making a payment.
- Depending on your insurer, your vehicle may be subject to a thorough inspection prior to policy issuance. If an inspection is necessary, you will need to choose a date.
- After your application is approved, you will receive your motor insurance policy in your mailbox within a few days.
Remember, inspections may not be necessary for each renewal, but keeping your insurer updated on any changes to your vehicle or driving habits is vital.