Last Updated : Nov 09, 2018 10:17 AM IST | Source:

Buying auto insurance? Here are the benefits you should look for before buying

Buying a policy that leaves you underinsured or has “hidden costs” is definitely a bad idea.

Moneycontrol Contributor @moneycontrolcom

Biresh Giri

Buying security with the help of auto insurance is always beneficial. Apart from compliance purposes, auto insurance provides a coverage against events of unpredictable financial loss. Without auto insurance, one would have to save a huge chunk of money to either compensate someone else or repair their own vehicle. The legal complications are another vertical one would have to be prepared for. As without an insurance policy, one could face legal charges in case of an accident.

To avail benefits, one should consider buying an auto insurance policy that provides an all-round coverage and is worth every paisa spent on buying the cover i.e paisavasool insurance. Who would want to burn a hole in their pocket even after buying an insurance policy? If you do, the policy is of no use as you are not been given any benefits for buying insurance in the first place.

How to avail benefits of auto insurance?

Buying a policy that leaves you underinsured or has “hidden costs” is definitely a bad idea. Instead one should try to avail as many benefits as possible from their auto insurance policy.

Secure lost depreciation with a zero depreciation cover

When a claim is made against a comprehensive type of auto insurance policy, a huge portion of the claim amount is subtracted under depreciation. Depreciation is the reduction in the monetary value of a vehicle with time. A policy without a zero depreciation cover cannot be truly called a paisavasool policy. To avail the maximum benefit and claim amount, consider making your policy worth your spend.

Use personal accident cover instead of health insurance

After recent amendments in the law, a personal accident cover of Rs 15 lakh for the owner/driver is available for just Rs 750 with an auto insurance policy. This move allows your insurance company to help you pay for the medical treatment if you get injured while driving the insured vehicle. Thankfully, with such a high cap, expensive surgeries can now be done without worrying about the hospital bills. Thus, if you get into an accident and injure yourself use your vehicle insurance policy instead of health insurance.

Exchange policy number instead of cash on accident spot

Many drivers try to settle the matter on the accident spot by offering cash instead of taking the help of an insurer. Under any circumstances, do not accept such settlements. Instead, ask the person to share their policy number and make a claim against their auto insurance policy.

Claim for consumables with a consumable cover

During claim settlement, the policyholder needs to pay a part from their pocket under deductibles and for the cost of consumables. Buying a consumable cover with your policy will be beneficial at the time of claim settlement.

An auto insurance policy is beneficial for the features and coverages it offers. Carrying out a smooth claim settlement process for the policyholder is one of the core strengths of this insurer.

The writer is Appointed Actuary of Acko General Insurance
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First Published on Nov 9, 2018 10:17 am
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