Comprehensive car insurance is for car owners looking for complete vehicle protection in case of damages due to accidents, theft, third-party liability, natural calamities, fire, etc. It protects against both own damages to the car and third-party liabilities.
So, it covers the third party also in case of death, accident or car damage. This type of car insurance policy provides your vehicle all-around protection while your car is on the road or, say, hit by natural calamities. Here, we will discuss how to calculate the premium for a comprehensive car insurance policy.
Steps to Calculate Comprehensive Car Insurance
All you need to know is certain basic things about your car to calculate comprehensive car insurance, such as the current value of your vehicle, the required repair cost and the deductible amount.
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Evaluate Vehicle Value:
Start by determining the current market value of your vehicle. It is easier to determine for a newly purchased car where it will be equal to the car price. Otherwise, use online resources or consult with your insurance provider. This value serves as a baseline for your coverage.
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Choose a Deductible:
Next, select an appropriate deductible amount. Deductible is the portion you will pay out of pocket before insurance coverage kicks in. Higher deductibles generally result in lower premiums and vice-versa.
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Consider Optional Coverage:
Next, consider your additional coverage requirements. These could include coverage for personal belongings in your vehicle. Decide whether these extras are necessary for your specific needs and budget.
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Search for Discounts:
Look for potential discounts. Various insurance companies provide different types of discounts, especially online, like safe driver discounts, multi-policy discounts, etc. These can significantly reduce your premium.
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Analyse Driving Habits:
Your driving habits can influence your car insurance rates. You may be eligible for lower premiums if you drive fewer kilometres annually or have a cleaner driving record.
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Compare Insurance Providers:
Make sure to obtain quotes from various insurers to get the most competitive rates. Prices can vary significantly between insurance companies. Hence, comparing quotes is essential.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the relevant industry. It is advised to verify the relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.