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How to Switch from Third-party to Comprehensive Car Insurance?

Team AckoNov 2, 2024

Buying a car insurance policy is mandatory in India. You might have come across this sentence several times and would have bought the basic cover available, i.e., Third-party car Insurance. However, it does not provide sufficient coverage and leaves you vulnerable to expenses arising from repairing your damaged car. To avail full coverage, you need to switch to a comprehensive insurance policy, and in this article, we discuss how you can do so and what you should be aware of before making the big switch.

Contents

How to switch from Third-party to comprehensive car insurance
Things you need to know about before switching

How to switch from Third-party to comprehensive car insurance

Switching from a third-party policy to a comprehensive one is very easy. If you look at the difference between comprehensive and third party insurance, the benefits of the policy are more as compared to the former basic type of policy. Here are the steps to switch from Third-party to comprehensive car insurance:

Visit online car insurance provider in India

Navigate to car insurance page

Enter your car number

Leave the previous policy number blank

Proceed to buy a comprehensive policy

Set the Insured Declared Value of your car

Buy Additional coverages or Add-ons if required

Read the Terms and Conditions of the car Insurance policy

Make payment

If your insurer wants to inspect the car, you will be asked to select a date for inspection. If you are accepted, your car insurance policy will be sent to your inbox within a few days. Inspection may not be required on each renewal. Buying car insurance online in india is the easiest way.

Also, read: How to Change/Switch Car Insurance Provider

Things you need to know about before switching

Cost of the policy: A third party insurance policy offers very limited coverage. It includes liabilities that are related to third parties involved in an accident with the insured car. Coverages like third-party property damage, third-party injuries, legal liabilities arising out of an accident, and a personal accident cover are taken care of. Own damage is not covered under a third-party car insurance policy. However, when you switch to a comprehensive policy, it will include own damage coverage along with all the coverages offered by the third-party liability policy. Since the scope of coverage will increase if you decide to switch, the cost of your car insurance policy will also increase. The final cost of the policy will be determined with the help of factors like make & model of your car, cost of additional coverages (if applicable), and the insurance company offering the policy.

Coverage: As mentioned earlier, the major change in your policy will be that coverage for own damage will be included in the policy. Your car can get damaged due to a number of factors. Among these factors, vandalism, damage due to natural calamities, fire, riots, etc. are included. Another useful coverage offered by a comprehensive policy is theft coverage. If the insured car gets stolen, you need to immediately get in touch with the insurer and inform the police as well. If the police issue a non-traceable report, it will mean that the vehicle cannot be found and you can receive the claim amount from the insurer.

IDV: IDV stands for Insured Declared Value, it is the approximate current market value of your car. The price of your car insurance policy will be based primarily on the IDV of your car. It is also the maximum amount that your insurer will be liable to pay in extreme case of damage or theft of your car. Thus, it is important to set the correct amount of IDV while buying your car insurance policy. If you set a lower amount, you might receive less money than you are liable to get. On the other hand, if you set a higher amount you will have to pay a higher premium for buying the policy.

Deductibles: Deductibles are values that you need to bear at the time of claim. There are two types of deductibles in car insurance – voluntary and compulsory. As the name suggests, you can pay the voluntary deductible as per your wish, it reduces the cost of your policy. However, remember that you are promising to bear a part of the claim amount voluntarily and agree to get a lesser sum of money at the time of claim. The compulsory deductible is a negligible amount you pay at the time of claim settlement.

NCB: When you renew car insurance policy, you will be awarded the NCB, that is the No Claim Bonus if you do not raise a claim against your comprehensive policy. NCB is only available when you renew car insurance and not if you purchase the policy for the first time or if you buy a third-party liability policy. If applicable, NCB can be as high as 50% when you renew car insurance for the 5th consecutive year without raising a claim.

Get in touch with your insurer when in doubt regarding car insurance. Never drive without a car insurance policy and drive safely.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet; and is subject to changes. Please go through the applicable policy wordings for updated ACKO-centric content and before making any insurance-related decisions.