Car Insurance – Watch Out Before You Buy!

Here are some things to look out for when choosing car insurance

The five “C’s” are the most important criteria. Here is a quick description:

• Claim settlement policy – The true test of an insurance company is at the time of an actual insurance claim. It is possible to verify this by reviewing the company’s claims resolution records. You can now check to see if your existing insurance policy can be transferred to another company without losing any benefits.

• Insurance – What is the right coverage for you? Car insurance policies usually cover third-party liability and personal damage. Motor Vehicles Act states that third party liability insurance coverage is mandatory, while personal damage is an option. Because they cover all damage caused by accidents or loss due to third party mishaps, it is common to choose for both. Many insurance companies offer an “add-on” policy that can be added to the basic policy.

• Customer service – Thanks to technology, insurance policies are now issued instantly. Other issues, such as cancellations or changes to policies, are also handled quickly. Cashless settlement can also be used in the case of a claim. Post-repair delivery takes place quickly and there are no additional costs. For this service, it is important that you check the insurance company’s network. The more options available to claimants, the greater the network.

• Communication access – The insurance company’s contact information must be easily accessible. In the event of a problem, the insured must know who to contact and what procedure to follow.

• Cost – Finally, the premium (or price) is important. The premium for car insurance is calculated based on “insured claimed value” (or IDV) and the rate multiplier. It depends on the model of the vehicle, age, daily mileage, and terrain. Even if your premium is slightly higher, it is crucial to declare the correct IDV.

The following benefits are worth looking out for, in addition to the ones already mentioned:

• No claim bonus if no claim has been filed during the insurance period, a no-claim discount is offered on risk cover against own damage at the time of policy renewal. The discount increases with each subsequent year of no claims. You should note that the no-claim bonus is valid even if you purchase a new vehicle or renew your existing insurance before the due date with a different provider.

• Opting for deductible Drivers with a clean driving record may be eligible for “voluntary excess”, or a deductible, to reduce their premium payments. The compulsory excess means that the insured is responsible for paying a specified amount in the event of a claim being filed.

• Based on the car type, premium You can get insurance at a lower price if your car is equipped with extra security features, such as anti-theft alarms.

• Renew your insurance promptly – Failure to renew car insurance before the expiry date could result in coverage being canceled, particularly if an accident occurs. Also, the renewal premium may not be credited with the no-claim bonus.

• There are many add-ons availableInsurance companies offer more than just basic car insurance. They also offer optional add-ons. You should only purchase the ones you need. You should check to make sure you have the right insurance policies.

 To renew or not to renew Is it possible to have the same insurance provider as before? Before you decide to renew your car insurance, it is a good idea to compare the offerings of different insurance companies. You can find a lower price elsewhere if you are looking for the same coverage in car insurance.

A few final tips to keep in mind are:

• Check that the insurance policy is genuine. You should always purchase your car insurance directly through the insurance company or an authorized agent.

• Always get a premium payment receipt.

• When you receive your policy document, check the IDV, no claim bonus and deductible details to make sure it is what you opted for. Any discrepancies should be reported immediately and rectified.

• Make sure only you sign the proposal form and always read before signing

• Do not opt for monthly payments as this is more expensive than annual payments

Keep this in mind Car insurance protects you and the occupants of your car on two counts: from accidental damage and from third party claims when you are responsible for the accident. Take care.