How to Choose Travel Insurance – 3 Best & Cheapest Options

What are the best travel insurances on the market?

Well, this will depend mostly on where are you from and what kind of coverage you want for your trip. If you research on the internet, you should be able to find a lot of options.

However, I have already researched A LOT have compared a lot of travel insurances and I always end up with the 3 online options that follow: 

The cheapest travel insurance on the market!!

Seriously, if you can find a cheaper travel insurance than this one, which works for citizens from all over the world, please let me know. As I have not found anything cheaper, I like to use  Medical (Atlas Travel) when I’m traveling to a “safe” place where I’ll be visiting mostly cities, such as United States or Europe, and I know I won’t be doing anything crazy. To be honest, I’ve thankfully never had to actually use any travel insurance so I’m not sure how the compensation services work. But I searched for reviews about Medical (Atlas Travel) and it looks like it worked fine for others who did have to use it. It’s really a great option if you are looking for cheap travel insurance.  

As I mentioned before, it is an international cheap travel insurance that accepts citizens from all over the world, with a few exceptions. Since it is cheaper than others, however, it may not cover all types of extreme activities. So, if you want to buy it, just make sure it covers the activities you intend to do as well as your nationality. It’s suitable for trips of any lengths ranging from someone’s round-the-world backpacking trip to a student on a short exchange study or an annual holiday.

You can also buy travel insurance with Medical if you have already started your trip. You don’t have to be at home or within your country of residence to buy this travel insurance or to extend your existing policy. 

Finally, there is NO age limit for Medical!  It will rate the cost based on the age you enter. However, when you’re over age 70 and then 80, the limits of coverage decrease. In other words, you will pay more than a younger person for the same amount of coverage. With that being said, since there is no age limit unlike most other travel insurances companies, Medical is an ideal travel insurance for seniors. 

Why should you have travel insurance during your trips?

Good travel insurance is really important, especially if you travel like I do and do activities where the chance of getting hurt are high and the medical expenses they might cause are enormous. During my trips, I’m always hiking on mountains, climbing things, jumping here, throwing myself over there, swimming where I shouldn’t, diving ….basically doing everything that I consider part of a perfect trip!!

Imagine if you’re snowboarding in Switzerland without travel insurance, get hurt in the middle of the mountain, and have to be evacuated by helicopter. The medical bill you will receive, while still in the hospital bed, is going to be so big that you will have to stay longer at the hospital to treat the cardiac arrest you’ll get after looking at all those zeros.

I’ve lost count of how many backpackers I met during my trips who had a giant scars on their legs… it is the famous Thai Tattoo!! Basically, this happens when someone was drunk while riding a motorcycle in Thailand and ended up falling or burning himself on the exhaust pipe. Do you really want to go to a public hospital in the middle of Bangkok?!?! With travel insurance, you can go to a private hospital where they will probably l take much better care of you. 

[Source: http://outofyourcomfortzone.net/how-to-buy-travel-insurance/]

Insurance for women – How important is it?

Insurance is an excellent tool for handling those unexpected risks in life like accidents, death, onset of a critical disease, natural calamities and many others. While there exists insurance in many forms, the level of awareness among the general public, especially women is not very encouraging. A survey conducted by National Council of Applied Economic Research a few years back revealed that the proportion of male insurance policy holders for all type of insurance is much higher in comparison to female holders, irrespective of an urban or a rural setting. The male female ratio for life insurance policies is 79:21, with the ratio slightly improving when it comes to health insurance.

Women do not mind stepping out of their houses and contributing to their family incomes and taking decisions on their career and other important matters at home, but many disregard their need for insurance.  In addition to being an important hedge against risks, insurance would also prove useful as an instrument for securing one’s retirement funds or planning for child’s education in some cases.

Life insurance

The importance of insurance remains the same whether for a male or a female. Life insurance plans are specifically targeted at the earning members of a household. It is intended to replace the loss of income and cover other liabilities of the surviving family members. Many financial planners go by this logic and do not recommend life insurance for homemakers. However, there is another side to this.

There is an economic value to the services rendered by the homemaker at home, though there is no transfer of payment. If, in any untoward circumstance a homemaker is unable to render these services, there is an additional burden on the family in getting these jobs done through someone else. Considering this factor, it is better for women, whether working or at home to get their life insured. Some insurance companies like Aegon Religare Life Insurance offer term insurance policies to spouses of individuals who buy their online term insurance plans. The sum offered is up to Rs 1 crore.

The importance of life insurance goes up, when you have dependents on you; they may be your parents, siblings, children etc. Term insurance (a product where you pay premiums but the money insured is paid back only in case of death) is an ideal product to have in your portfolio. Premiums for these policies are much lesser in comparison to other General Insurance products that pay back money at certain intervals. When it comes to life insurance there are not many women specific insurance policies. However, if you are looking just for term insurance, any online policy would hold well.

Medical Insurance

While many may still underestimate the need for a life insurance, the importance of medical insurance cannot be undermined.  A working lady or the one at home, anyone can fall sick and may be in need of medical care. During these days of rising costs, a normal visit to the doctor sets you back with a bill not less than Rs 500/-, imagine the kind of expenses that you incur for a hospitalization or treatment of critical illness.

[Source: https://blog.bankbazaar.com/insurance-for-women-how-important-is-it/]          

Is third party insurance cheaper than fully comprehensive?

Third party v fully comprehensive insurance

Is third party insurance always cheaper than fully comprehensive?

Third party only should be cheaper, but according to this is not always the case.

Let’s understand the difference between policies. The law demands you have third party insurance which covers the cost to others (the third party) of the damage and injury you cause through your own fault. Your own vehicle is not covered by your own policy.

Next you can add to the third party policy, fire and theft being the usual sensible additions.

A fully comprehensive policy has everything above, and then includes cover for your own vehicle damage, regardless of who was at fault. Your vehicle is covered up to its market value at the time of the damage. You can add extras like motorcycle helmet and protective gear.

So it looks like the insurance company is at risk of paying out more, so the premium should be higher.

Our friends at have researched 1.4 million annual car insurance policies and the result challenges what we might have expected.

On 30 June 2010 Felicity King-Evans wrote for the comparison website.

Analysis has found that in actual fact, fully comprehensive cover is often the cheapest, despite offering the highest level of protection. So how can this be possible?

To find out run a quote for yourself covering all the options. The average driver will find that their car insurance premiums rocket if they search for third-party-only cover.

But why? It’s always been assumed that the less cover you buy, the cheaper the policy.

Steve Sweeney, car insurance expert, explained: “In recent years, drivers with a more ‘risky’ profile, such as younger motorists or those with driving convictions have opted for this cover to keep the cost of motoring down.

“Providers have reacted to this perceived increase in risk by driving up the cost of third-party only cover.”

After all, insurers are in the business of assessing risk. For example, there’s a higher likelihood of accidents among teenage drivers, so they are charged more. So, if car insurance providers realise that motorists buying third-party insurance only cover are more likely to be involved in accidents, they will rack up the price accordingly – and that’s what’s happened.

Third-party only cover costs an average of £1,927 a year, which is a whopping 109% more expensive than average fully comp cover at £922 a year. The average premium for third party, fire and theft stands at £1,348 – nearly 50% more than fully comprehensive.

It’s not just that riskier drivers go for these policies, driving up the average cost. By choosing third party cover, experienced drivers fall into a riskier category in insurers’ eyes – the result of which is a higher premium for the individual.

[Source: http://www.yourkey.info/is-third-party-insurance-always-cheaper-than-fully-comprehensive/]

Overseas Travel Insurance

What is New - General Insurance in India

Post de-tariffing of market in 2007 the general insurers in India have free market approach to price their products except for motor third party insurance. Sustainable growth is the life line for any business and insurance is no exception to it.

Insurers must have the 360 degree view of their business .The Regulator, who watches the interest of the policyholders, however observed that despite its advisories the free market regime coupled with intense competition amongst insurers & their obsession for the top-line is resulting into deficient assessment of insurable risks, in corporate sector, and that the prices are offered to these corporate clients for property insurance and group health insurance at non-viable rates which are ultimately subsidized by the buyers of retail products.

Due to aggressive competition the insurers were offering heavy discounts on portfolio basis to retain their accounts and were quoting less than 10 to 20% below the estimated outgo in group health segment to attract new corporate. 

These corporate with loss making group health covers continue to escape price hikes by shopping for new insurers. The chase to build up top line and the pressure on marketing force of the insurers for their targets resulted in health insurers willingness to accept the business even not covering expected claim cost ignoring loading for medical inflation, acquisition cost , servicing cost by third party administrators and management expenses. 

In a bid to address this issue and to bring corporate governance in the business behaviour of rhe insurers the Authority has prescribed its pricing prescription which is applicable with the 1st day of 2015. The Authority's prescription for pricing fire, property and group health insurance is to consider Burning Cost as starting point to price these risks. This only can move market forward towards claim plus pricing mechanism.

Burning cost is the estimated cost of claims in proposed insurance period and is calculated from previous year claim experience of the insurer duly adjusted for change in number of lives and for changes in the benefit design proposed for current year of the risk. IRDA in its advisory and prescription has made it very clear that industry-wide losses should be considered for pricing the product and insurers current level experience of acquisition and management expenses should be loaded to it. 

The industry-wide burning cost is available with IIB (Insurance Information Bureau of India) for Fire and Property Insurance but such industry-wide burning cost for group health is not available. The Authority is also aware that brokers are not disclosing all details of group health experience to insurers at the time of RFQ (request for quote).

In health insurance the trend & incidence rate usually does not vary from year to year. However, the average claim cost bears the impact of medical inflation to some extent. Till the IIB is ready with the industry-wide Burning cost in group health segment the authority has tightened the reporting parameters. It has prescribed that the intermediary or the client will mandatory have to sign and disclose the claim cost of last year and preceding two years in the input format designed by General Insurance Council of India (GI Council). This will surely improve the disclosure and will put insurers in a better position to assess the risk on quality data necessary to price the risk.

With uniform data now available to underwriters if any of them choose to price the group health risk lower than burning cost than it will have to have the approval of its Board of Directors. Further this will have to be filed in form of Exception Report in a format to be designed by IRDA.

The Regulator has initiated this move to see right pricing coming into the market and corporate governance in the business behaviour of the insurers. The move signals that premium for this fastest growing portfolio would be rising in last quarter of 2014-15 or else there will be reduction in the benefits including caps beings introduced for procedures or else employers will seek sharing of cost from employees for present benefit design of their health protection covers.

[Source: https://generalinsurancesite.wordpress.com/2016/01/18/what-is-new-general-insurance-in-india/]

India’s Insurance reform will benefit Insurers and Society

Since Narendra Modi’s government has been in power, significant changes have been made to boost India’s economy and society. One major change was implementing the Indian Insurance Act, first proposed by the previous government.

The Act enables global reinsurers to enter as 100 per cent owned branches and increases overall foreign direct investment (FDI) in the insurance industry from the current limit of 26 per cent to 49 per cent. While there are many aspects of insurance, the most significant opportunity not only for insurers but also for Indian society, is the health insurance sector.

India is one of the fastest growing health insurance markets in the world. It has grown rapidly since the industry opened to private and foreign players in 1999 with the establishment of the Insurance Regulatory Developments Authority. In 2014, the health insurance market grew to $2.7bn from just $150m in 2004. It is on track to hit $8bn by 2020.

There are a number of factors driving this growth.

From a workforce perspective, just 10 per cent of India’s 300m working population work within formal sectors such as government, the public sector or in large private companies, which often offer health insurance perks. The rest work in the informal sectors, meaning they are self-employed or working in family businesses and, therefore, without corporate health insurance cover.

It is this end of the market that is most dependent on financial security during ill health. Yet, in the absence of health insurance plans, many are liable for medical bills and loss of potential income during treatment.

Demographically, the population boom, rising life expectancy and increased incidences of lifestyle-related diseases means that total healthcare expenditure is growing rapidly. It is expected to rise from $70bn to $280bn by 2020.

Despite this, there is a low spend per capita compared with countries where healthcare is largely funded by the government, meaning that some 62 per cent of total expenditure on health is paid for out of pocket.

India has one of the lowest penetration rates of pre-paid health coverage and medical insurance in the world. This is due to its geographical size, the capital required to invest in developing the distribution network and the current lack of focus from insurers in the individual health insurance sector.

The limitation on foreign investment rules in general insurance did not give much incentive for a lot of foreign experienced players to participate in this market. There are just five standalone health insurance companies and 17 private sector insurance companies offering health insurance. So there is low consumer choice, coverage and competition. Compare this with the UK, which has 911 general insurers. India itself had over 100 players in general insurance before the market was nationalised in 1972.

Active foreign participation is critical for the sector, bringing better standards and driving competition, with better quality products, customer coverage and choice. The increase in the FDI limit will create significant opportunities for foreign players to enter the market through joint ventures, mergers or acquisitions.

Yet there are some significant challenges that remain, such as finding the right acquisition target or a partner with the right balance of local knowledge and cultural compatibility in the boardroom between the two organisations. Successful firms will be those that are comfortable with local regulatory requirements and have working knowledge of India’s business environment.

Modi’s government has promised to revamp India’s healthcare sector and make services more affordable and accessible for all walks of society. With the doors opening to India’s insurance industry, the health insurance sector will play an increasingly important role in delivering this commitment to its citizens from all walks of life.

[Source: http://blogs.ft.com/beyond-brics/2015/03/30/indias-insurance-reform-will-benefit-insurers-and-society/]

5 Ways to Save on Home Insurance

If you own a home, homeowner’s insurance is a must—and it usually isn’t cheap. For many people, paying homeowner’s insurance is lumped in with a monthly mortgage payment, so they never think about how much they’re actually paying for it. But reducing your home insurance rate can reduce your monthly payment, leaving more money in your pocket at the end of each month. And there are ways to lower your home insurance rate; they just aren’t always obvious.

Every year, there are potential opportunities for reducing your home insurance bill. But homeowners have to be proactive to take advantage of the savings.

Here are five things you can do to enjoy lower insurance costs.

1. Shop around. If you haven’t yet purchased a home, consider the cost of insurance before you buy. If you purchase a home that is within close proximity to fire hydrants and fire protection services, you could get a lower rate, as insurers look favourably on homes with those criteria, says Michael Barry, vice president of media relations at the Insurance Information Institute. When you’ve chosen a home insurance, Barry recommends shopping around for an insurer. 

“The U.S. homeowner’s insurance market is a competitive one and you’ll find wide variations when getting price quotes from different insurers,” he says. “Be sure, however, you also look to see how the coverage’s differ from company to company.” Not every insurance company will provide the same coverage — so when purchasing a policy for the first time or if you decide to switch insurers, make sure you’re comparing apples to apples.

2. Review your policy annually. After most people purchase a homeowner’s insurance policy, they simply pay the premium each year and never look at the policy again unless they need to make a claim. But that’s usually a mistake. By reviewing your policy each year, you can see if your rate has changed or if you qualify for any new discounts. When you first purchase a homeowner’s insurance policy, your insurance agent is required to let you know about discounts you qualify for. But each year when you renew, there is no such obligation. It’s up to you to be proactive. “Each year, your home insurer will almost always modify slightly your policy limits to reflect the cost of construction materials and labor in your neighborhood,” Barry says. “Both of these variables factor into pricing a policy.”

3. Increase your deductible. If you’ve been paying for a policy with a low deductible and you want to decrease your insurance rates, consider a higher deductible policy. Increasing your deductible, from $500 to $1,000, for instance, is “the fastest way to achieve premium savings,” Barry says.

4. Upgrade your home. You can also qualify for insurance discounts if you make changes to your home that improve safety or security. For instance, installing smoke detectors, burglar alarms or dead-bolt locks can usually result in insurance discounts of at least 5 percent, Barry says. Other discounts are available if you upgrade your home in a way that makes it “better equipped to withstand a natural disaster,” Barry says. For instance, that might include a new, wind-resistant roof or reinforced windows. But keep in mind that when you make cosmetic upgrades to your home—new kitchen cabinets or adding a sunroom, for instance—check with your insurance agent to make sure your updates are covered, and don’t be surprised if your rate increases to cover the updates.

5. Bundle policies. Insurance companies insure much more than homes, and they want your business on as many lines as they can get it. For that reason, many insurers will reduce your homeowner’s premium if you also purchase your car insurance or other types of insurance from them. So consider moving your life, auto or other policy to the same company, and then ask for a discount.

As you look for ways to cut expenses, consider implementing these ideas to save money on your annual home insurance bill.

[Source: https://www.societyofgrownups.com/blog/save-on-home-insurance]

General Insurance

If you don’t skip the commercials during daytime TV, you’ve probably seen an ad for The General insurance company, featuring The General, their pint-sized mascot. Whether posing next to a hot rod or driving a giant bus down a very narrow road, The General is on a mission to let drivers know about The General auto insurance, with the slogan: “For a great low rate you can get online, go to The General and save some time!”

While The General as a company has existed, under various names, for years, its mascot is a relatively recent invention. Adopted “a few decades” after the company was founded, The General is a decorated soldier with a gravelly voice and a very high mustache-to-height ratio.

He was designed by California-based Ken Roberts Productions, and has undergone several makeovers over the years. In his early days, he sported a cell phone – the kind you might associate with Gordon Gekko – and had a cartoony quality, but recently, both his technology and rendering have been updated. In 2007, he gained a third dimension, and in January 2013, ads began portraying him from a lower angle, so more of his face is visible, giving him a friendlier expression.

His current cell phone also fits in the palm of his hand. His spots gained the company three Telly Awards – an honor for outstanding local, regional and cable commercials and shows – in 2012, though there are reportedly thousands of Telly winners each year, so The General is in good company. 

Founded in 1963, the company currently called The General was first known as the Permanent General Agency. Subsequently, the PGA and its subsidiaries have has many other names, including the Permanent General Insurance Corporation. The organization adopted the name The General in 1997, and consolidated all of their operations under it in 2012. In January 2013, the company was purchased by American Family Insurance. The General is headquartered in Nashville, and has physical locations in Louisiana. Other customers do business over the phone or online, where The General’s auto insurance quotes are free, quick and anonymous. If you’re looking to sign up, however, be aware that coverage isn’t available in all states. 

Though less well-known than many of its competitors, The General may be your best bet if you have a spotty driving history. The company caters to those with a few tickets, a DUI or even SR-22’s. For this reason, you could likely get your best rate elsewhere if you have a clean driving record. If your lowest quote is from The General, though, know your reasonable premium could exclude a number of fees – according to former customers – and that their customer service is sometimes lacking. Those trying to process a claim with the company often report unresponsive agents and lower-than-agreed pay-outs. For others, the low prices are worth the risk. But whether you’re persuaded by their ads or not The General car insurance company and their mascot will be interrupting your talk shows for years to come. 

[Source: https://www.nerdwallet.com/blog/insurance/car-insurance-basics/the-general-insurance/]

Car insurance renewal – You cannot escape but you can certainly save

Third party motor insurance is compulsory in India. The practice of renewing car insurance policy is pretty commonplace among thousands of car-owners in India. Although, many people in India are under the misconception that car insurance renewal is a money making tactic of insurance companies, there are many avenues available to save money if one chooses to go online. Online renewals further provide car-owners with a number of benefits. This post aims at assisting those who are looking to renew their existing car insurance policy and to ensure that they get the best deal at a much-reduced price.

Ways to reduce car insurance renewal cost

There are many windows available when it comes to save on the expense of renewing a motor insurance plan. Let us start our discussion with 5 major ways.

Comparison

This is one of the key ways of saving money while renewing car insurance policy in India. People those who never compare various quotes and are content with the renewal quote that their exiting car insurers offer may lose out on a great chance to reduce the expense. One of the major reasons why these people turn their faces away from comparison is the task of visiting a myriad of insurance portals and comparing costs manually.

However, to ease out the entire process many a quality General Insurance comparison portals has come into existence. The best among these portals like GIBL also help people compare, buy and renew policies from a single interface as well. Car-owners should make the most of this unique facility and check out advantageous car renewal plans so that they can compare, find the best and make a renewal and save money in the process.

Zero in on vital features

While comparing a myriad of car renewal schemes, car owners invariably come across a plethora of features on offer by insurers. Since the requirement varies from one car-owner to another, it is prudent for motor insurance renewal seekers to narrow down on features they they need and opt out those costly plans with extensive features that are not relevant for them. This ploy can save them a good amount of money.

No-claim bonus

Car-owners with valid insurance policies are eligible for concession at the time of renewing their policies if they don’t make any claim during the policy year. The concession is known as no claim bonus or NCB and it keeps increasing as the policyholder’s claim-free year also increases.

Higher deductible

At the time of car policy renewal, current policyholders are entitled to opt for a voluntary deduction.As per the norm, policyholders are supposed to pay this voluntary deduction amount at the time of claim settlement. If one chooses to pay higher amount one will have to pay less on premium , hence one can save on car policy renewal.

Advance Renewal

Most car insurers tend to raise the price of renewal on or some days before the stipulated renewal date. A lot of car-owners faced a sudden hike on the day of renewal , simply because insurers are well-aware of the fact that car-owners have no option but to grab them by paying more. Hence, it is prudent to start looking for a car renewal policy at least two months in advance. A week or two can be spent on searching, finding, 

comparing and selecting the best motor insurance renewal plan so that the renewal policy can be acquired at least 45 days before the lapse of current policy. Even if insurers raised the renewal rates at the time of renewing car policy it won’t be a matter as the policy has already been renewed at a reasonable price.

[Source: http://blog.gibl.in/car-insurance-renewal-you-cannot-escape-but-you-can-certainly-save/]

Car Insurance Renewal: Why Should It Be Done On Time?

Car insurance, as you know has to be renewed on time. Failing to do so will attract a lot of trouble for your car or vehicle, third party, and even to yourself. To keep things simple, let's say in an unfortunate incident that you have met with a small accident, which has involved another vehicle. Both vehicles have been damaged and the other vehicle owner demands you to pay since it was your fault, but, you think it was his fault. This is a classic case of an ‘Accident', in which both are wrong and right at the same time.

In a case like this, is when insurance comes in handy, and also, renewal on time saves you as well as the other motorist, bearing the cost of damage for both the vehicles. Another important factor is that in case either one sustains an injury, the insurance will take care of that as well as property damage, if you have run over a small fence or into somebody's gate. Is that all? No.

Here are some more reasons why vehicle insurance has to be renewed on time: 1. You might have to buy a new policy itself. Yes, if the insurance is lapsed and has not been renewed after a period of time, you will have to shell out more to buy a new policy, even if it is from the same insurance company.

Insurance providers have a set time frame before which the policy has to be renewed, and failing to do so will lapse your policy itself. 2. You might end up paying a fine. Some insurance companies might ask you to pay a fine for the number of days your vehicle runs without a renewed policy.

That will only be a waste of cash. To avoid that, a simple way is to renew it on time. 3. Keep the police away. You will be fined for not having a valid insurance for your vehicle. Using a car or a motorcycle on public roads needs a valid insurance certificate. In other words, you are committing a crime, a traffic violation that is punishable under the law. Insurance should be renewed on time. 4. You could lose benefits.

This is another important reason to renew the general insurance. Companies give benefits and one major benefit is the No-Claim Bonus (NCB), which is awarded if you have not made claims in the past. This can be added up over several years and while renewing the policy, you could get up to 70 percent off on your premium.

If the policy is not renewed on time, however, you could lose benefits and end up paying a lot for your insurance policy. So, keeping the above reasons in mind, rush to your nearest insurance provider or grab that laptop and renew your insurance policy now!

[Source: http://www-drivespark-com.spiral.media/scatter/www.drivespark.com/?url=http%3A%2F%2Fwww.drivespark.com%2Foff-beat%2Fcar-insurance-renewal-reasons-012154.html%3Foi_source%3Dspiralmedia&adgroupid=93&rand=99498&time=20151029101430483930]

Understanding the benefits of the 7 major car insurance riders

Due to various unpredictable factors like weather, road quality and other drivers, even comprehensive car insurance plans sometimes fall short of giving you 360° protection.

Car insurance riders are essentially additional benefits you receive at an additional cost; optional add-ons to any standard plan that provide protection against situations that a regular comprehensive plan might not cover.

Related: Comparing car insurance- how to choose the right policy?

Engine Coverage Rider

For a country like India, where the arrival of Monsoon means clogged roads and smoking exhaust pipes, the Engine Coverage Rider can provide plenty of relief. Insurers provide hydrostatic cover, which covers car damages caused due to a consequential loss. The insurance company will cover engine repair in case it is damaged due to leakage of oil, water stalling etc. if you opt for this rider.

Roadside Assistance and Towing Rider

The RSA rider provides car owners a number of extremely important services that could be of great help in case you have an accident or even if your car breaks down in the middle of the road. RSA offers 24x7 varied kinds of assistance, such as fuel refilling, lost key recovery, flat tyre change, battery jumpstart, etc. To know more, read this comprehensive guide to RSA.

Related: What to do after a car accident

Zero-Depreciation Cover

When you file an insurance claim, a standard third party insurance plan will consider the depreciated value of the damaged parts rather than their present market value. The depreciation rate varies depending on factors like the make, model and age of the car. You, thus, end up paying a considerable portion of the full claim amount from your own pocket. A zero depreciation cover, however, guarantees full claim amount with zero depreciation deduction. Thus, if your car is damaged in a car accident, your insurer will cover the entire cost, rather than just a portion of it.

Personal Accident Cover

This secures your family's future in the event of a permanent disablement or in the unfortunate circumstance of your death. You can get coverage of up to 2 lakhs for any damage caused to the driver while travelling, mounting, or dismounting from the car. Some insurers also offer optional accidental covers for co-passengers. This rider applies in case of accidental death, temporary partial disability and permanent partial/total disability caused by road accidents.

Ambulance and Medical Expenses Rider

The worst case scenario with a car accident is that you or another involved party suffers grave injuries and need to be rushed to the hospital for emergency treatment. This rider compensates you for the ambulance charges as well as medical expenses of up to approximately 10,000 INR.

Vehicle Replacement

In case your car gets damaged beyond repair in an accident, or is stolen, surviving without a car, even for a couple of days, can be extremely inconvenient. Insurance companies declare these cases as a 'total loss', which means that the claim amount received under such circumstances is less than the actual market value of the car and not nearly enough to provide sufficient cover or get a replacement. Having a vehicle replacement cover will get your car replaced with a new equivalent car.

Related: Just bought a new car? Here’s what to do next!

Rental Reimbursement

Once your car has been sent to the repair centre, managing without one can be extremely cumbersome. You would have to carpool, take public transport, or even rent a car in the absence of your own, so you can go to work or for other commitments. Having a rental reimbursement insurance plan would help you cope with these costs, by paying for your car rental bills during this time.

The next time you’re buying or renewing a car insurance policy, make sure you ask about these riders and include the ones you feel are suitable to your needs.

[Source: https://www.tomorrowmakers.com/articles/car-insurance/understanding-the-benefits-of-the-7-major-car-insurance-riders-]