Every car owner is aware of the fact that one can be penalised if he/she is found driving without a valid car insurance policy.  The Motor Vehicles Act, 1988, makes it compulsory for all car owners to at least own a third-party insurance cover. No motor vehicle owner can drive his or her car without opting for this minimum protection. Motor insurance protects your vehicle and provides coverage in case it suffers damage due to any reason. But, still, many car owners remain confused about HOW TO CHOOSE CAR INSURANCE POLICY and WHICH COVERAGE IS BEST SUITED FOR THEM. According to Ankit Agrawal, Director, Girnar Insurance Brokers Pvt Ltd, some essential facts should always be kept in mind while evaluating, choosing and buying a car insurance policy. HERE IS THE LIST:-

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RIGHT CAR/TRIM LEVEL: When you choose a car, do look at its variants and cost of insurance. In most cases, the higher you go up in a car's trim list, the lower the difference in insurance premium cost. This is because insurers see the addition of safety features – such as airbags, immobilizer, central locking, etc. – in the higher trims as factors that reduce the chance of an insurance claim.       

TYPE OF INSURANCE: There are two types of insurance that you can buy for a new car – comprehensive policy with add ons or a liablity only policy. In the case of a regular comprehensive policy, one needs to pay a certain part of the cost of repairs in case the car meets with a accident. The zero-depreciation type ensures that your car remains unaffected by depreciation. In practice, it means that the insurance provider will cover the entire cost of repairs carried out on your car. If you use your car occasionally, opting for regular comprehensive insurance type would be the right choice. For a car that is driven daily, a zero-depreciation policy works much better.      

ADD-ON COVERS: Opting for the right add-on covers will increase the coverage of your insurance policy and ensure protection for you. Covers such as those for water ingress in the engine (hydrostatic lock), theft and accidents that lead to scrapping (return to the invoice) ensure you are not caught off guard. It is important that you consider add ons basis your driving behaviour before buying a policy. 

ANTI-THEFT: Insurance companies provide you with favourable terms if your car has anti-theft features such as central locking, immobilizer, etc. However, do ensure that the anti-theft equipment is Automotive Research Association of India (ARAI)-approved, or you would not be eligible for these terms.    
 
OPT FOR VOLUNTARY DEDUCTIBLES: Voluntary deductibles allow you to lower the premium of your insurance policy. If you opt for Voluntary deductibles a portion of the claim amount will have to be borne by you. 

Above-mentioned points and facts should be always kept in mind while choosing and buying an insurance policy, so as to remain protected and insured, and save your hard-earned money at the same time.