Car insurance is a mandatory requirement in India. The Motor Vehicles Act of 1988 has laid down a mandatory requirement to carry motor insurance policies for vehicle owners. So, car insurance is one of the best gifts you can purchase for your car.
A car insurance policy is available in two forms – third-party and comprehensive plans. Third-party policy, as the name suggests, is also known as liability-only plan and covers liabilities that arise due to a third-person. On the other hand, comprehensive plans offer more holistic coverage that include liabilities due to others, as well as, the damages that may be caused to your car.
Thus, if you have a third-party policy, you should consider upgrading to a comprehensive plan for its enhanced coverage. Also, comprehensive plans can be upgraded using add-ons which are additional covers that are combined with your comprehensive plan for an extra price.
What are the reasons to upgrade car insurance policy?
While there can be several reasons why you may choose to upgrade, here are some of the common reasons for an upgrade:
- You have a third-party policy but it does not provide adequate coverage for your own damages. At this time, an upgrade to comprehensive policy will be a smart choice since it covers not only liabilities, but also the damages that are caused to your car during an accident.
- In case of change of geographic location, say a change where your car is driven, it can be a sufficient reason to upgrade considering the driving conditions in the new location or city.
- If you happen to share the car with a young driver, insuring with a comprehensive policy can benefit since new learners often encounter accidents damaging the car.
- Lastly, if you have purchased an expensive luxury car, you can buy car insurance online with comprehensive coverage to safeguard against the expensive repair costs that might burn a hole in your pocket.
Will upgrading insurance cover increase the premium?
Short answer to the above question is ‘yes’. The premiums are bound to increase with an upgrade in insurance coverage. However, the increase in premium will not be the same for every upgrade. The base insurance cover, the new insurance cover, the upgrade selected shall be a determining factor on how much the premium shall go up. For instance, if you upgrade from a third-party policy to a comprehensive plan, the increase in premium shall be substantial based on the coverage selected, whereas upgrading comprehensive insurance policy with add-ons shall cost lower.
How to upgrade your insurance policy?
Upgrading your policy is a straightforward process which can be done at the time of car insurance renewal. You can do it online as well as offline, but online has its benefits like comparing multiple plans at once. All you need to do is visit the insurers website and login to your account by entering the policy details. After providing necessary information, you can proceed to select the upgrade you wish to choose. At this stage, you can also pick add-ons that can be used to increase coverage of your comprehensive policies. Lastly, make the payment and enjoy the new revised coverage in your car insurance policy. It may get confusing which plan to select but using a car insurance premium calculator will help to shortlist and make a prudent choice of upgrading while not exceeding on your budget.
Here’s how you can avail a better car insurance coverage and ensure improved safety with your insurance policy.