Of course, you value your car! The pride and joy that you feel while maneuvering your car, your own car that you bought after months of deliberation, research and saving, is indescribable. So, even the slightest scratch hurts. Even the smallest of bumps gives you sleepless nights. And God forbid if your beloved car meets with an accident! So the most important question that you need to ask yourself is, “Am I doing enough to protect my car?”

Car insurance (or motor insurance) is the umbrella that protects both- your car from unforeseen risks and you from incurring losses in case of an eventuality. The cover of the car can include the insured car, the insured party and third parties (that includes other vehicles and people). The premium that one has to pay is dependent on things like the value of the car, the type of coverage, the classification of the vehicle, and so on and so forth.

Because car insurance is mandatory in India, people generally do not want to get into the hassles of reading up on the details and choosing the right car insurance online. It becomes a mere formality that just needs to be closed. Period. However, you don’t realize that this could be the biggest mistake you could possibly make.

Here are 10 things you absolutely MUST know about your motor insurance or else you would be left with a useless plan when in crisis:

1. Higher the deductible, lower the premium- Car insurance companies decide prices on the estimate of the money they think they will have to pay you in case of an eventuality. However, if you agree to raise your deductibles, hence decreasing the amount that the insurance company has to give in your claim, they usually offer a low premium. Avoid opting for this unless you can you can afford to pay the deductibles.

2. Yes, you can transfer your No Claim Bonus (NCB) – Upgraded your car? You can transfer your accumulated NCB to your new car. Moved to a new insurer? Again, you can transfer your current NCB to the car insurance policy under the new firm. As simple as that!

3. Know about Zero Depreciation Cover– A zero depreciation cover is your safest bet. This type of cover offers full settlement without factoring in the depreciation. So in case your car meets with an accident, a zero depreciation cover ensures you do not have to pay anything from your pocket for the damage caused vis-à-vis a normal car insurance that factors in depreciation and makes a considerably reduced settlement. Yes, the premium of a zero depreciation cover is higher than that of a regular cover, but isn’t it all worth the effort and the trouble?

4. Get your car accessories covered too!- You might not know it but a lot of motor insurance companies offer cover for the accessories fitted in your car as well. This is a separate add on that is custom designed for your specific accessories. The additions to your policy might increase the premium amount, but in the long run, this is your safest, wisest bet.

5. Get the engine insured too- Did you know that you can opt for an add-on that would cover your engine as well to save you the cost of repairs that are not caused by an accident? Engine repairs can get pretty expensive, especially if the damage is caused by flooding, and this add-on will save you a lot of trouble, and of course, money!

6. Breakdown/Lost key assistance? Yes, you need to check for that too!- Not just in case of accidents, car insurance policies help you in case of a breakdown or if you have lost your key (that ones a nightmare come true!). But you need to check if your car insurance policy covers these eventualities as well. If it does, the on-road repair cover will help you with a mechanic, the provision to tow away the vehicle, and accidental repair, or even replacement of tyre and tubes! The lockout assistance will help replace the car keys/locks. Now that’s what we call a comprehensive car insurance plan- definitely the kinds that you should have.

7. Dealer Insurance? You might want to think twice– You look at all the paperwork and you just want to get into your brand new car and drive away. So you take the easy way out. You take whatever motor insurance the dealer offers. Is that wise, you ask? Well, is signing on a blank cheque wise? Just because you are getting it the easy way does not necessarily mean that it is the best deal you can get. Politely say no to the dealer, and do your research. Compare policies; see which one works best for you in the long run and then make a choice.

8. Letting your policy lapse may not be a wise move– Insurance companies don’t like car owners who do not have a motor insurance policy. They are considered irresponsible and a risky investment. So they fall back on the security of high premiums.. Allowing your car insurance policy to lapse may cost you more than you think. The new policy will not come cheap for sure.

9. Bundling up insurance helps– Live in a big family and have more than one car shared by the household? You would be spending big bucks on the total insurance then. What could help is asking your insurer for a bundled car insurance plan. This will help lower the premiums across all cars and save you a neat packet. Smart move, eh?

10. Insurance prices vary from one company to another– Unlike popular yet faulty perception, all insurance companies have different rates on offer. Each insurer has custom formula for risk assessment and that helps them decide what to pay for coverage. Therefore, no two insurers will have identical prices. Hence, if you buy a policy without comparing rates, you may end up overpaying, and grossly at that too!

A good motor insurance policy ensures you have peace of mind and financial security while driving. Iffco Tokio, for example, offers the best motor insurance policies that provide comprehensive protection. These policies also cover all liabilities due to injury, death or damage to the third-party property. Apart from accidents, Iffco Tokio policies also provide insurance against riots, fires, thefts, explosions and acts of God, etc. Additional benefits come in the form of roadside assistance in case of a breakdown, duplicate keys in case of loss of the original set, etc. Who doesn’t need a policy as complete as the ones from Iffco Tokio?! Take your time, compare rates, and choose well. And do not forget to keep the aforementioned points in mind. Happy driving to you!

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