In Comprehensive and Third Party Fire & Theft policies that provide cover for the insured vehicle, you have to specify the sum insured. The sum insured shall reflect the market value of the vehicle. In addition, you need to know that in case of a loss you will be compensated for the market value of the vehicle the time of the accident. As a result if you insured your vehicle for a higher than the market value amount you will pay unnecessary premium.
How much should I insure my car for?
Tags: market value, sum insured
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