6 Things to Consider When Buying a Car Insurance
The necessity of owning a vehicle is increasing day-by-day whether it for going on excursions or for going to your workplace, hence, more and more people are buying vehicles whether a two-wheeler or four-wheeler. But it is important to ensure that your precious possessing stay safe and sound. Hence, car insurance is an essential component whether your buying a new car or are renewing an expired insurance policy.
Having car insurance in place will ensure that in case anything goes wrong that will be taken care of by the insurance company and you will not have to bear any financial burden.
People often undermine the importance of car insurance and hence ignore it. But at the time of need, they realize its importance and regret later. So, if you don’t want to make such mistake, buy car insurance as soon as you buy a vehicle and if you already have a vehicle make sure that you renew it timely.
People often don’t buy car insurance to save money. Think if you can’t afford the car insurance premium, how you will afford the much higher cost of paying a claim out of pocket. Car insurance is required to protect you against the very real risk that you could find yourself financially responsible for some large bills you can’t afford to pay.
In the cluster of products available, people often get confused what to buy and what not to buy. So, here are few things to consider while buying a car insurance policy that will help you to choose the best car insurance policy.
Most important criteria while choosing a car insurance policy should be its scope of coverage. It is very important to go through the terms and conditions of a car insurance policy thoroughly before opting for it.
There are basically two types of car insurance policy — third party cover and comprehensive cover. Third party liability insurance is mandatory by Motor Vehicles Act to have for all vehicles plying on the road. Comprehensive cover includes the third party liability cover and an own damage cover. While third party insurance covers damage to the other party which can be hurt by your car in case of an accident, own damage insurance covers both accidental damages and losses to your vehicle. However, it is advisable to buy a comprehensive cover which provides wider coverage.
2. Insurance Company
Other important criteria to choose the best car insurance is to choose the right insurance company. How good a company is known at the time to make a claim on the insurance policies previously bought? For this, you need to check the claim settlement ratio of the company. It shows that out of the number of claims made by the policyholders, how many of them were settled. It is also important to check the average claim settlement time of the company. It will give you an idea about the promptness of the company in settling claims.
3. Customer service
With the time technology has improved tremendously, and with this customer service has also shown huge improvement. So, before buying a car insurance policy, make little effort and search about the customer service of insurance companies and go with the company with good customer service. The company should have good service not only at the time of purchasing but also during the claims settlement.
When buying an insurance plan, do not look only at the cost of the entire policy. Make sure that you compare the cost to feature ratio. An extremely cheap policy may not have a lot of essential features which you may need. So, make a list of all the features that you require and then narrow down the policies that cover it, and then compare the price and other services and features.
With internet facility at your doorstep, go through various motor insurance reviews, to gather proper and accurate knowledge or idea about it. India has numerous companies offering insurance, but you have to choose the appropriate one. You should always go for such policies which offer you maximum facilities at a minimum premium.
Insurance companies also offer riders or add-on covers with car insurance policy that can help you to enhance your cover for a nominal additional premium. You can choose them according to your requirements. Here are few important riders that you can consider:-
- Zero depreciation cover: This rider entitles you to claim the full cost of replacing car parts damaged in accidents without having to pay from your pocket.
- Engine protect: This cover is considered particularly relevant for owners of brand new high-end cars and is available for cars that are up to three years of age. Engine protect or machinery breakdown add-on cover compensates even for those engine related repairs that are not related to accidents.
- Return to invoice cover: This cover ensures in the case of total loss or theft of your car you will get the original invoice value, including registration charges and road tax paid off the car, and not just the Insured Declared Value (IDV).
- Roadside assistance cover: Under this cover, insurers provide certain services round-the-clock such as refueling, towing, change of flat tire, arranging for a mechanic’s services, etc, in the case of a car breakdown.
The premium for a car insurance policy depends on several factors such as make and model of the vehicle, year of manufacturing, place of registration, current showroom price of the vehicle etc.
Now, when you know what to look while buying a car insurance policy, buy it and safeguard your car from all calamities. Car insurance is an investment that you are making to protect yourself from unexpected future. It is worth spending few rupees to get car insurance so that you don’t put yourself under any out-of-pocket risk if you are in the unfortunate situation of an accident or injury.
Visit PolicyMantra to compare insurance policies from India’s top insurers and get the best policy suitable to your needs.