Most car owners in India buy car insurance policies because they are legally required to. In general, people don’t compare car insurance policies and make their purchasing decision based solely on the lowest premium cost. This can lead to inadequate coverage.
Car insurance should be treated as important as buying a car. Before you make a purchase decision, it is important to be familiar with the various aspects of car insurance. Understanding the nuances of car insurance can help you obtain adequate coverage and better benefits if you’re a first-time buyer.
These tips will help you make an informed decision about insurance.
Third party insurance is compulsory
All car owners must have third party insurance as per the Indian Motor Vehicles Act. Driving without insurance is a crime punishable by a heavy fine. Make sure you have insurance coverage every time you drive your vehicle.
The car dealer usually offers only third-party coverage when you purchase a new vehicle. A key point to remember about third-party auto insurance is that it covers only the damage that can be done to another person’s vehicle. This includes bodily injury, death, and property damage. However, third-party insurance policies do not allow you to claim coverage for damages to your vehicle.
Seek a complete cover
When you are looking for car insurance online, one of the most important things to do is verify that the policy offers comprehensive coverage. Comprehensive car insurance provides greater coverage than third-party insurance. It covers third-party liability and damages to oneself. A comprehensive policy also provides protection against natural and man-made disasters such as fire, theft, riots rainstorm, or storm.
Although the premium cost for comprehensive car insurance is more expensive than third-party, the benefits it provides are well worth it.
Insured Declared Valu
The insured declared value, or IDV, is the amount the insurance company will pay in the event that your car is damaged beyond repair or stolen. The IDV is not the resale price of your car. It is simply the maximum value of your vehicle (as determined and paid by the insurer) in the event of total loss.
Different insurance companies might offer different IDV. It is important to evaluate the current value of your car before you calculate the IDV. When you are looking for car insurance policies online, make sure you find one that provides an IDV that is close to the current market value.
Services offered
Most people will choose the lowest-priced car insurance company. However, this is a mistake. You must consider the reputation and quality of the service offered when you search for the best car insurance policy.
Reputable insurance companies will provide prompt assistance and prompt responses to your questions and service requests. Reviewing the experiences of other customers is a great way to gauge the quality of the services provided. You should also look at the claim settlement rate of the company. It is best to purchase insurance with a high claim resolution ratio.
No Claim bonus
Insurance companies offer a reward for making no claims in a given year, called the No Claim Bonus. The reward usually comes in the form a reduction on your premium when you renew your car insurance policy. You must verify that the insurance company offers an NCB program when you are doing car insurance comparison . You should also check to see if the NCB is included in the quote.
As it is regulated under IRDAI, the NCB discount doesn’t differ from one insurance company. The NCB discount increases each year until you file a claim. You can receive a NCB discount up to 50% if you do not file a claim within five years.
Additional Covers
You can add on riders or cover to your insurance policy. These are additional protections that you can buy in addition to the existing coverage. Many Indian insurance companies offer additional coverages to meet the diverse needs of their customers. You can customize your policy to include any additional coverage you need.
The most popular additional coverages include roadside assistance, zero-depreciation and return to invoicing. Not all insurance companies offer the same level of coverage. Compare the policies to find the one that provides the added cover you require.
Comparing car insurance quotes has never been easier. You can now compare quotes online. With just a click, you can compare quotes from as many companies and select the policy that best suits your insurance needs.
