There are two parts of vehicle insurance – third party (TP) and own damage (OD). TP cover is mandatory but it is cheaper. To take or not to take OD cover is your choice and it is also expensive. When both these covers are included in vehicle insurance then it is called Comprehensive Vehicle Insurance Policy. Experts say that if you are determined to reduce expenses on auto insurance, then do not take OD cover. But do take cover of fire and theft protection along with third party insurance. With this, you will get maximum cover in premium of just 50 percent.
Read also: Success Story: If he did not get a good job to pay off the debt of the laboring father, then this person created a company worth 70 thousand crores
No claim bonus will also be available
In a news published in BS, Utpal Raman Sharma, head of car insurance at Policybazaar, says, “Third party, fire and theft protection insurance can be up to 50 percent cheaper than comprehensive insurance.” If the vehicle owner does not make any claim for the whole year, then he gets the benefit of no claim bonus at the time of policy renewal. You get the benefit of bonus even after taking minimum insurance cover.
Also read: This company of Baba Ramdev has doubled the money of investors in just 2 months, know everything
Pandemic reduced the likelihood of accidents
In the midst of the Kovid-19 epidemic, most people are working from home and the use of their vehicles is also decreasing. When vehicles are less on the roads, then the risk of accident will also be reduced. In such a situation, many people have started wondering whether there is any point in maintaining comprehensive vehicle insurance or not. Many people have also started thinking of taking minimum cost insurance.
Read also: To buy an insurance policy, it is necessary to fulfill this condition of the companies, know the whole matter
There is a danger of theft or fire in a parked vehicle
In a news published in Business Standard, Shreeraj Deshpande, Chief Operating Officer, Future Generali India Insurance, says, “At this time people may not be using vehicles in public places and hence may not be willing to take own damage cover. But there is also a risk of theft or fire on the parked vehicle, so protection cover must be taken from them.
Read also: Job Ki Baat: Use hashtags to find jobs, learn such important tips
consider the risk
Insurance cover is taken so that the risk is protected and there is no worry. Therefore, if you do not take OD, you will not be able to get protection from damage caused by an accident (such as a tree falling on a vehicle or a vehicle getting stuck in water). If you become a victim of an accident while driving and your car is damaged, then you will not get compensation. Not only this, if you go to take comprehensive insurance next year, then you may have to accept some conditions of underwriting.
Read also: Modi government played a big bet to store petroleum, know everything
keep this in mind
If you want to take the insurance cover with higher features in the later years, then you may have to comply with certain conditions. Your insurance savings of last year may also be spent in complying with these conditions. Not only this, once the zero depreciation cover is exhausted, it will be difficult to get it again. If you go for comprehensive insurance again, the declared insurance value (IDV) of your vehicle may also decrease. IDV is the maximum value of your vehicle that you can get if the vehicle is completely damaged in an accident.
Don’t forget to close the comprehensive cover in these cases
For those who have bought a car for more than 5 years or whose car is more valuable, it is better to maintain a comprehensive cover. Because in such a situation, if any untoward happens, then the loss due to insurance can be easily compensated. However, due to depreciation, the value of cars older than 5 years gets reduced significantly. In such a situation, even if an accident happens, the amount of damage will also be substantial.
Car use less, then only get third party insurance
There are many cars in your family and some of them are rarely used. Also, whether you have your own garage or building, your car should be parked in a covered area and there should not be any water stagnation there. In this case the minimum insurance option can be taken on that car.b