How to Upgrade to a Comprehensive Car Insurance Policy?

Posted on: January 6, 2021, by :

Car insurance policy is a mandatory document to hold for every car owner in India. However, the compulsion to own insurance is applicable only on the basic cover, i.e. Third Party car insurance. But, this insurance cover is unable to offer sufficient coverage to policyholders and leaves them vulnerable to bear the expenses arising due to damages sustained by their car in an accident or any mishap. To get the complete coverage, policyholders owing the liability only cover should switch to a comprehensive car insurance policy as it will provide them legal as well as financial security. Let’s comprehend how you can upgrade your plan and factors you should consider before making the switch.

How to Upgrade From Third Party to Comprehensive Car Insurance

Upgrading your insurance cover from third party plan to comprehensive plan is a simple process. You just have to follow the below-given steps to switch the third party to comprehensive car insurance:

  • Visit the website of a car insurance company
  • Click to the car insurance tab
  • Enter the car number or registration number
  • Leave the section of previous policy blank
  • Proceed to purchase a comprehensive plan
  • Set the Insured Declared Value (IDV) of your car
  • Select add-on covers to buy, if required
  • Read the Terms and Conditions and click yes for agreement
  • Make the payment through online gateways and find the policy document via Email.

In some cases, the insurance company may require you to inspect your car for which you could be asked to choose a date and time for inspection. After the successful inspection, the car insurance policy will directly be sent to the inbox of the registered Email.

Factors to Consider Before Upgrading the Car Insurance

Here are some factors which every policyholder must consider while upgrading the car insurance plan:

Cost: A third-party car insurance policy provides limited coverage as it gives coverage only for third party property damage, injuries, and death arising out of an accident. Whereas, a comprehensive policy provides coverage for the third party as well as own-damages. Due to this increased scope of coverage, the cost of comprehensive insurance premium will be higher than the liability only cover. You must give this point a thought before making the final move.

Coverage: The major change with this upgrade will be of policy coverage. The comprehensive insurance cover will cover the expenses of your car which may arise due to an accident, fire, theft, man-made disasters like vandalism, riots, etc., and damage caused due to natural calamities such as earthquake, flood, etc. Here you should understand the actual need for the

Insured Declared Value (IDV): The Insured Declared Value denotes the prevailing market value of the insured car and also the maximum compensation amount which your insurance company will be liable to pay you in case of severe damage or theft of your car. Based on the IDV, the premium of the car insurance plan is fixed by the insurance company. Thus, it is significant to set the right IDV during the purchase as fixing a lower value might make you get less money during claim settlement and setting a high IDV can make you pay a higher premium.

No Claim Bonus (NCB): Ensure if the insurance company is offering the No Claim Bonus or not. The NCB is a discount which is awarded to every policyholder at the time of policy renewal for making no claim in a policy year against the comprehensive insurance plan. The NCB reward gets accumulated with every claim-free year and it can go maximum up to 50% with the 5th consecutive claim-free year.