Anyone who enjoys driving a car would concur that no one size fits all. A frequent road traveller would prefer an SUV’s instantaneous burst of energy. A business owner will require a classy sedan to entice customers. A man with a large family would choose a large MUV. Like cars, car insurance must meet the need of its owner, which can be accomplished by personalizing the car insurance policy.
This article will highlight how the policyholder can customize his/her car insurance policy so that it can offer the right kind of protection and care to the vehicle. This will eventually save a lot of money that the insured would have otherwise paid at the time of claims.
Ways To Customize Car Insurance Policy
Listed below are some of the prominent ways in which the insured can give a personal touch to his/her car insurance policy.
Choose The Type Accordingly
One should put all of his/her attention into getting well after a car accident and not worry about the financial implications. To go through any such crisis with minimum anxiety, the insured should always choose the type of car insurance that can offer him/her adequate coverage.
Basically, there are two types of car insurance in India, namely Third-Party Car Insurance and Comprehensive Car Insurance. The third-party car insurance policy is mandatory insurance coverage that guards against the possibility of third-party property or person loss or damage. It is a policy with restricted coverage. It only covers harms or damages the insured’s car causes to another vehicle or third party. It does not offer protection for any loss or damage to the insured’s car.
On the other hand, a comprehensive car insurance policy offers total protection and includes coverage for both third-party (person or property) damage as well as damages to the insured’s own vehicle. It is slightly more expensive than third-party coverage because it also covers damage to the insured’s vehicle. The new regulations also limit the duration of this coverage to one year.
People buy comprehensive car insurance plans in an effort to protect their vehicles from unfortunate accidents and catastrophes because third-party insurance only provides partial coverage. However, if budget is a big issue, then the policyholder can go for third-party liability coverage only.
Customize With Add-On Covers
Although a comprehensive car insurance policy provides more coverage to the policyholder, it is not a one-stop solution. The greatest alternative for enhancing the value of insurance coverage and personalizing car insurance is to purchase add-on covers, which provide extra protection and a competitive edge over standard vehicle insurance.
Here’s a list of some add-on covers that one can use to personalize their car insurance policy:
- Roadside Assistance Cover: If the insured’s car breaks down, he/she will receive emergency services like towing, fuelling, changing a flat tyre, and mechanic repair around-the-clock with the help of this cover. Some insurance companies charge a small premium for this additional insurance coverage, while others include it as part of the standard coverage.
- Zero Depreciation Cover: If the insured chooses this cover, the insurer will pay the amount of the repair bill without taking into account depreciation on the parts of his/her car that are either fixed or replaced, which prevents default depreciation from being deducted during the claim settlement.
- Engine Protection Cover: Luxury car owners will benefit more from this add-on coverage. Owners of vehicles that are no older than three years can only purchase this coverage. The Engine Protection cover, commonly known as the Machinery Breakdown cover, pays for engine repairs for harm that wasn’t brought on by an accident. The benefit of buying this insurance is that it covers engine repairs, which can be very expensive in the case of luxury vehicles.
- Return To Invoice Cover: Return to Invoice is an optional insurance cover that assists policyholders in recovering the car’s original purchase price only in the event that it is stolen or suffers a total loss.
- Consumables Cover: Because the Consumables add-on covers the costs of consumables like engine oil, lubricants, gearbox oil, grease, nuts and bolts, screws, distilled water, oil filter, etc., policyholders can reduce the amount they have to pay out of pocket at claim settlement.
- NCB Protection Cover: With the NCB Protect add-on, a policyholder is still able to keep their NCB even after filing a claim. As a result, this aids in maintaining the premium discount for the following year.
- Personal Accident Cover: This add-on covers both the car’s owner and the hired driver. Owner drivers are entitled to receive 100% of the claim amount if they are involved in an accident and suffer catastrophic limb damage or pass away. The personal accident protection add-on is only available for one car if an owner has numerous vehicles.
Informing Insurer About Car Modifications
Purchasing a new car entails a number of responsibilities, one of which is purchasing insurance for it. Since you now possess the car of your dreams, you would want to customize it to add a special touch to it. This might involve anything from upgrading the car’s upholstery to installing new lighting.
Small or large changes to your car can automatically impact the amount of your car insurance premium. Therefore, it is preferable to consider any potential expenditures that a modification might incur. It is also very important to inform your insurer about the modifications you have done to your car to avoid any kind of obstacles in the claim process. When you let the insurer know about modifications, they can conduct a new inspection of the vehicle, take the modifications into account, and modify or personalize your car insurance policy accordingly.
Let’s take a look at why any car modifications can also modify your premium amount!
|Type Of Modification||Reason For Changing Premium Amount|
(Example: Pain job, graphics, lights, etc.)
|A customized car might be easier to steal because of its enhanced appearance. The cost of the car’s insurance will skyrocket if anything raises its risk profile.|
(Example: Changes in a car engine, adding nitrous oxide, etc.)
|The cost of car insurance changes whenever the engine’s cubic capacity changes. A car that is driven faster is more prone to mishaps and damage. As a result, these modifications raise its risk level, which raises the cost of the car’s insurance.|
(Example: Addition of music system, wooden dashboard, etc.)
|One would also like to insure the expensive parts installed inside the car. This will also raise the premium amount of the car insurance policy. In case the car owner has installed an anti-theft device in his/her car, it will lower the premium amount because it is less susceptible to theft or damage.|
Although the insured has the option to personalize his/her car insurance policy at any point during the policy term, policy renewal is the most convenient time to do so. The above-mentioned ways can help the policyholders to enhance the coverage of their car insurance policies and provide enough protection from unfortunate accidents. These customizations can be conveniently added to the insured’s car insurance policy and can coalesce with his/her basic insurance policy to give you the best possible coverage.