Key things to keep in mind before buying a car insurance policy
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Which type of insurance cover to buy?
There are two components to car insurance - own damage and third party. A third party (TP) insurance of three years is mandatory by law if you have bought a new car, while own damage (OD) cover is optional. It is important to know that you don't have to buy both covers from one insurer.
1) Standalone third party coverage: When you only buy TP insurance from an insurer without buying OD coverage. It is also called liability insurance.
2) Standalone annual OD cover: When you separately purchase standalone OD cover.
3) Comprehensive policy: Comprehensive policies not just cover third party liability but also own damage due to accident, theft, fire etc.
You may come across another type of insurance named bundle insurance. It is a mix of many products covering all your car needs from accidental to theft damages. "Bundle Insurance product is mix of zero depreciation, key replacement, loss of personal belongings and personal accident coverage etc," says Indraneel Chatterjee, Principal Officerand Co-founder, RenewBuy.com.
"In today's time it's highly advisable to always opt for bundled products as many companies give handsome premium discounts on bundle products," he adds.