After you buy the car of your dreams, the next step is to get car insurance that suits your needs. A car insurance policy is a must to protect your free-wheeler from unforeseen damages. Many people view car insurance as an unwanted burden but this is not the case. Getting car insurance may cost you a little, but in the long run it will free you from the huge bills that might have to be borne in times of an accident. There are two types of car insurance policies that are available today- comprehensive and third-party car insurance. A comprehensive car insurance can be customised according to your requirements with several add-on covers.
What is best for one person might not be the option for you, therefore it is important to do proper research before you buy the best car insurance in India.
Factors to Consider Before Buying Car Insurance
With a lot of insurance companies providing car insurance policies, choosing the right car insurance can be a hard task. The best car insurance is one that is affordable and suits all your needs. You have to do your homework before you finalise which car insurance you want to buy. Here are a few tips that you will help you choose the best car insurance in India:
Compare the various plans:
Every car insurance policy in the market has different features and benefits. It might be difficult to choose the best plan. This is why you have to compare the various options. Make a list of the features that you want and compare different car insurance plans on the basis of inclusions, exclusions, premiums, etc.
In this digital era, you can now buy, renew and compare car insurance policies online. You do not have to reach out to an insurance agent to help you find the best one. There are various online comparison tools available that you can make use of to compare the policies online. You can also use the online system to read reviews by other buyers. This will help you find out the car insurance that provides value for your money.
Consider additional covers:
When you buy a car insurance, it is recommended that you not only consider the features that the primary insurance plan offers but also ask about the add-ons or riders. Make sure to understand all the add-ons offered under the specific four-wheeler insurance policy. This will help you pick features that are not included in the primary policy. You can optimise your primary insurance based on your insurance expectations. Buying car insurance just because it has a low premium rate is not a good idea. Although a lower premium might appear to be more cost-effective, it comes with fewer benefits. Therefore, opting for insurance with a higher premium cost is advisable to get the most of your insurance coverage. Make sure to read the terms and conditions that are written in fine print.
There are a variety of add-ons available in the market provided by various insurance companies. These include third-party liability cover, engine cover, roadside assistance cover, personal accident cover, zero depreciation cover and so on. Kindly note that insurance companies provide various additional covers at varying premium rates. Even though these add-on covers are an added cost, it will provide extra beneficial coverage.
Know claim settlement ratio:
Not a lot of people understand the significance of claim settlement ratio (CSR). It is important to check the CSR of the insurer before finalising a car insurance policy. The CSR shows the number of insurance claims that the insurer has settled against the number of insurance claim applications that they receive in a year. It is advisable to buy the car insurance policy from an insurance company that has high CSR because this implies that the chances of you getting your claims approved are also high.
Check for no claim bonus:
It is important to take this particular factor into consideration while purchasing a car insurance policy. In case you do not file any claim that particular year, the insurer will reward you in the form of ‘No Claim Bonus’ during the time of renewal. It means that you will get extra benefits like discounts on premium. In case you are a responsible driver and you have not filed any insurance claim from the insurer, you get a no claim bonus.
Check how the customer service is:
In case you are in desperate need of assistance and you are not able to reach the insurance company. Then, what is the point of having car insurance if you cannot get the benefits of insurance? The main objective of purchasing a car insurance policy is to help you with financial assistance when you need it. It is important to consider the customer service of the insurer while choosing an insurance policy. Check the credibility of the car insurance policy provider, their reputation, customer reviews, customer service team, etc.
It is recommended to choose an insurer that offers 24/7 service with the facility of online grievance. In addition, make sure that the insurer of your choice has a toll-free number that works well.
Find out the claim process:
One of the main objectives of buying a car insurance plan is to get urgent financial assistance in case of an accident. Therefore, it is important that you choose an insurer that has a quick and easy claim process. The last thing you want in an emergency is to go through a complicated and stressful process to get compensation for your loss.
Find out the insured declared value:
The insured declared value (IDV) is the amount that the insurer will pay in case your car gets wrecked beyond repairs or in case your car gets stolen. Do not confuse this with the resale value of your four-wheeler. It is the maximum value that you will be paid in case an accident leads to total loss of the vehicle.
The tips mentioned above will help you choose the best car insurance in India. It will help you clear any doubts that you may have and choose a plan that suits your budget and requirements. As third-party car insurance is compulsory by law, car insurance is important to protect you and your car in the event of an unfortunate accident.
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