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iGenie | Car Insurance
The monsoons poured and wreaked havoc in Chennai. People were ousted from their homes while food was growing scarce by the day. Raj was so involved in trying to ensure that his family was safe that he overlooked one other cherished possession - his 1 year old car. As the winds bellowed on the trees, branches splattered the windshield. As the water rose, the engine spluttered. By the time the sun came out, Raj was left with a battered and watered down car and an Insurance agent telling him that 'Natural disasters' were not covered in his plan.

Raj might have been bogged down with a loss amounting to lakhs. But because he overlooked certain vital aspects of his car insurance while investing in it, he faced a grim situation. In order to ensure that you don't face a similar situation, we have put together 5 things you shouldn't miss while insuring your car:

  1. Ensure that the Policy you invest in is comprehensive
    The signs of a well-rounded car insurance plan are a provision to tackle any form of concern you may face with your car, anywhere and at any time. A comprehensive car cover should cover circumstances that go beyond being embroiled in an accident. From water-locked engines to break downs in a remote location, from theft and vandalism to seasonal damages; your plan must be able to shield you from most types of unexpected worry and financial loss.

  2. Factor-in Depreciation
    Your car never loses value in your eyes. For Insurance surveyors, the value of your car begins to depreciate from the day you drive it home for the first time. When looking for the right insurance with a budget and an estimate return in mind, don't forget to include the cost of depreciation in your calculations. The depreciation is decided based on age, make and cc of your car. There are add-on covers that offer zero-depreciation. So do go through each company's offering and decide on the perfect plan for your needs.

  3. Be cautious to pick add-ons when required
    To not be in a position like Raj's, a comprehensive plan would work best. But if you feel that your car may be prone to certain factors more than others, always pick an add-on cover that takes care of that problem. For instance, if you reside in a remote location, make sure you have 24/7 assistance and vehicle towing added to your plan. These add-on covers can be picked even during renewal while anticipating an event in the near future.

  4. Be prudent while declaring your IDV
    IDV, expanded as Insured Declared Value is the amount of money that your insurer pegs your car to be worth. The amount of depreciation is set against the market price and a number is decided as the IDV for your vehicle. This IDV comes into play when you claim after damages and in deciding your premium. Lower the IDV, lower the premium and the settlement amount. If you are realistic about your IDV while registering it, although your premium may be high, the final amount during settlement might shoot up too. So be prudent in making that decision.

  5. Network and Cashless Garages
    Just to be sure that you know where you can go when your car gives up on you all of a sudden, make a mental note of all the garages in the vicinity of your residence and places you frequent, that support your insurance plan while buying one. This information can be a boon and can save you the unnecessary trouble of having to pay for the damages upfront or to transport your car to the garage that supports your plan.

    Purchasing a Car Insurance has to be an equally well thought-out decision as buying your first car, investing a similar amount of time and effort. The ideal way to avoid unexpected road-blocks is to be aware of the various factors that interplay in Car Insurance and compare various companies' offerings before making a choice.

    For more on Car Insurance and why you need it, click here.

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