Accidents often occur when you least expect them. Further, it is impossible to predict an event in advance and avert it. Thus, we must always be ready in order to ensure that the overall damage is minimized. The same is the case with the car that you drive. In order to ensure a safe and sound journey on the road, you need to opt for the best form of protection available in the market i.e. a car insurance policy. The three major forms of insurance policies available in the market for your car are the third party cover, comprehensive insurance and the choice of add-ons. Although, third party cover only provides protection against financial and legal damages caused in an accident to the third-party; however, comprehensive insurance will cover all the damages caused to you as well as the third-party. There are numerous add-ons available to ensure that you are completely protected against the damages that your comprehensive insurance doesn’t cover.
Thus, taking this all into consideration, Rahul purchased comprehensive insurance and even purchased an engine protection cover- because his house was located in an area which faced major floods during monsoon season. However, after purchasing the best and the perfect car insurance policy, the premium that he would have to shell out was higher than he had expected. But he wasn’t the kind of person to compromise on his safety for some money; thus, he went ahead and still purchased the insurance policy. And around that time, one of his friends suggested that he could still save money on his insurance premium by simply opting for a lower IDV. For those of us who are unaware of this term- IDV is the amount of money assured by your insurer, in the case, if your vehicle faces complete damage and loss or if it is stolen. This IDV is exclusive of the depreciation amount of your vehicle and is advised that you opt for an IDV that is near the market price of your car.
However, against his better judgment, Rahul paid heed to his friend’s advice and opted for a lower IDV in order to save money on his car insurance premium; but little did he know that this small lie would cost him a lot of money. About 2 months have passed since he has purchased his insurance policy and everything is running smoothly for him; until one fine day when he left his vehicle at his office complex over the weekend. After coming back the following week, to his utter despair, his vehicle was nowhere to be found. He searched the spot twice and even looked around check if he had parked his vehicle at a different spot. However, after searching for a while, the harsh reality stuck him quite hard; the fact that his vehicle had been stolen over the weekend was a tough morsel of truth to swallow.
The only silver lining that he had after this ordeal was the fact that he had purchased a good car insurance cover. But little did he know that the small lie in his IDV would cost him a load of money now- his insurance company only reimbursed him for the amount of IDV that he had set; which was lower than the actual price. Thus, he faced a major loss even after purchasing a good insurance cover; therefore, it is advised to set an IDV that is near or equal to the market price of your vehicle.