Driving in a Sports Utility Vehicle (SUV) has its beauty. However, appropriate steps must be taken to safeguard this asset. It is essential to drive carefully. Apart from that, buying a car insurance policy is a safe way to mitigate financial risks in mishaps involving the insured SUV.
It must be noted while purchasing a car insurance policy that the policy costs and add-ons vary with the category of the car you own. It is essential to buy adequate add-ons as the cost of maintaining an SUV is much higher than any hatchback or even a sedan.
This also means that you might have to pay higher premiums for your SUV. Read on to find out how to choose a suitable car insurance policy for your SUV.
What are the Types of Insurance You Can Buy?
There are majorly three types of car insurance policies you can buy for your SUV:
Comprehensive Policy
A comprehensive insurance policy protects the liabilities of third parties as well as the losses incurred to your vehicle. A comprehensive insurance policy provides extensive coverage, more incentives, and covers losses to the insured vehicle in the event of an accident, crash, burglary, etc. A comprehensive policy can be further expanded by opting for add-ons such as cover accessories, engine safety, zero depreciation, medical expenses, etc.
Third-party Insurance Policy
Third-party car insurance covers you from any civil responsibility if your vehicle is involved in an accident. Your insurance company will pay any third party for death, disability, accident, or property damage. You are also shielded from financial responsibility to third parties.
Pay-as-you-drive insurance
Often known as use-based car insurance, this insurance policy requires the insured to pay insurance premiums per kilometer driven. This newly launched product will be of interest to those with multiple cars, not all used too often. The policy includes adequate protections for damage and third-party liability on a pilot basis for one year. The insurance seeker will have to declare the distance he/she plans to travel during the policy year based on which the Pay-As-You-Drive car insurance policy premiums will be determined. However, the insurers have three slabs for the distance covered-2,500 km, 5,000 km, and 7,500 km.
What are the Add-ons that You Should Get?
Roadside assistance
Roadside assistance gives you the freedom to call your auto insurer for support, and the crew will be sent to your rescue point in no time. Essentially, all services are free, but you will have to pay the costs in some cases. Roadside assistance provides various advantages to policyholders such as Towing Service, Battery Jump Start, Spare Key Arrangement, Alternate Battery/Jump Start, Phone Assistance, Alternative Transport/Hosting, Emergency Fuel and Minor Repair.
Passenger cover
A passenger insurance policy is a financial coverage for passengers traveling in the insured vehicle. Although it is mandatory to cover a personal accident for the insured vehicle owner, it is not obligatory to protect passengers. With this add-on, you can insure up to three passengers, aside from the Personal Accident cover for the owner-driver, in the case of a 3-passenger seating vehicle. In the event of an unfortunate accident, you, as the driver of the car, are responsible for the passengers' injuries. This add-on includes liability to passengers as the owner of the vehicle.
Return to invoice cover
When it comes to Return to Invoice in auto insurance, the insurance provider will return the car's value approximately equal to that shown on the car's initial invoice in the event of significant damage. The decision to include Return To Invoice in automobile insurance is with the car owner and is not legally binding.
Engine protection cover
Purchased as extra compensation under the Comprehensive Auto Insurance Program, it includes damage to the insured vehicle's engine. The add-on will reimburse you for replacing or fixing the engine or parts of your car. This may be due to leakage of lubricant oil, water ingress, damage to components such as gearboxes, pistons, connecting rods, etc., as well as to hydrostatic lock caused when the wet engine is started.
Zero depreciation cover
If you have zero depreciation car insurance coverage, you can demand the entire cost of replacing the car parts in the event of accidental injury. The depreciation value of the damaged parts shall not be deducted from the sum of the claim. So it makes you save a massive amount of money.
Things to Keep in Mind While Finalizing the Deal
- Coverage benefits of the policy: You should always be mindful of whether the policy you have opted for provides adequate coverage for all your needs.
- Price of the premiums: It is no secret that the cost of premiums varies with the policy, add-ons, and the condition of the vehicle. Thus, it would be best to compare the premium prices online for different companies to get the best deal.
- Claim settlement aspect of the insurer: Claim settlement aspect of an insurer is measured using the Claim Settlement Ratio. It is the number of claims settled divided by the total number of claims. It is essential to choose an insurer who has a good claim settlement ratio.
- Customer service: Prompt and efficient service is also a prerequisite while choosing an insurer. This will help in clearing your doubts effectively and quickly.
Conclusion
The premium costs for a car insurance policy vary according to the type of car owned. For an SUV, the premiums are higher due to the premium car segment and the requirement for additional coverages.
Like any other car, there are three types of car insurance policies available for your SUV, namely, comprehensive coverage, third-party liability, and pay-as-you-drive coverage. However, comprehensive coverage is most recommended.
While buying an insurance policy for your SUV, you must consider buying a return to invoice, zero depreciation, engine protection, roadside assistance, and passenger cover add-ons.
Some basic things like policy coverage, premium price, claim settlement record of your insurer, and the customer service record should also be considered. With all this in place, you will now be ready to drive your king's chariot without any stress!
