How to Pick the Right Vehicle Insurance

Buying a vehicle in itself is a tedious job and choosing the right insurance policy for it acts like a cherry on the top. Choosing a right insurance policy is not an easy job. Before you settle on a policy, you must be aware of all the points in the fine prints and should compare different policies. Vehicle insurance has so much in it. Let's take a look at some basic things.
Types:
1) Third party liability insurance: This is mandatory for all the vehicles that go on public roads. In this type of insurance, a third party is covered for the damage of the property, accidental death and injury.
2) Comprehensive plan: This plan covers both legal liabilities of third party and own damages. Hence, this is the most preferred plan for vehicle insurance. It covers theft and damages by unforeseen threats.

Factors affecting the premium:
1) Risks related to vehicles: Cubic capacity, fuel type and make affect the premium of the vehicle insurance plan. SUVs and commercial vehicles have higher premiums. Diesel vehicles have about 10-15% higher premium than petrol vehicles, etc.
2) Risk related to location: Urban areas have high premiums and so does the areas near highway and densely populated cities. High theft record areas also have high premiums.
3) Previous claims: If you have made a claim to your vehicle insurance, then the premium rises the following year.
4) Drivers: The age and experience of the driver is taken into account for determining premium. It goes up in case of multiple drivers.

Mistakes in choosing cover:
1) Valuation of the Vehicle: In the temptation of lower premium, some people reduce the declared value of the car. But then, in the case of the accident, the car will be treated as the total write off. Hence, one should avoid such practice.
2) Policy lapse: In case of policy lapse, the insurance company may give a week of grace period but after that driving without insurance is a risk. After the lapse of policy, you will be without any cover; you will lose on the low premium amount or any kind of discount.

Useful Add-ons:
1) Nil depreciation Insurance: This policy covers the complete claim for plastic and rubber parts of the vehicle. Although it increases the premium to a certain extent, it saves quite a lot in repairs in case of the claim.
2) Personal cover: For a small fee, it covers personal accidents as well. Drivers, who have a driving license and drive the car, are also covered under this.
Before you pick a vehicle insurance cover, it is important that you research about it and compare before settling on one.
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About Parvesh Bravo

I am professional blogger share guide about WordPress, blogging tutorial, seo techniques, making money from blog and getting traffic to the blog.