How to get the best car insurance deal

Years ago, when the automobile industry of India was in its budding stages, owning a four wheeler was a far distant dream for many of us Indians. But with globalisation branching out to new horizons, getting behind the wheels of your favourite car is no more a herculean task. Clearly, the steady growth of automobile segment of the country has comparable indications in the sales figures of motor insurance companies as well.

For many of us, vehicle insurance is just an added expense which is often tossed aside in the list of priorities. Buying the right car insurance is also a puzzle for many as it is considered just a process that involves filling out forms, buying what the insurer recommends, and paying out aversely on a regular interval. This, however, is not the case. You can always have an upper hand in making decisions if you are adept at choosing the right plan. But keep in mind that it’s the fine print that actually defines your insurance cover. So make sure that you read all the clauses given in the fine print before choosing your car insurance plan. The below mentioned points will shed light on some of the crucial aspects of motor insurance and help you in getting the best insurance deal for your car.

Why is it important to insure your car?

Motor insurance is a two-way street where one pays for what the other offers. With auto insurance, you definitely are protecting one of the weightiest assets that you possess. Not to mention that insurance is a federal mandate. But it is advisable that you never arrive at buying decision unless you have made a comparative analysis of car insurance plans available in the market. With more number of vehicles hitting the roads each day, the likelihood of damages increase significantly. Considering different sources and types of risks in today’s world, even theft and natural calamities should be given due importance while picking your insurance plan. In addition to covering damages to your vehicle, the insurance also acts as a protection against third party liabilities. But with insurers providing a multitude of offers and coverages, it’s befuddling for a first-time car buyer to choose the right plan. The points that follow are checklists to ensure that you get the best out your auto insurance deal.

Knowing the plans offered by insurance companies

Before we understand the deeper aspects of car insurance, let’s take a look at the types of plans and their benefits. Motor insurance is the need of every car buyer and it comes with a wide variety of coverage options. Right from repair of a minor dent to medical insurance and vehicle remodeling, your car insurance takes care of everything. The following types of car policies are offered by insurance companies in India:

Comprehensive coverage: This policy offers an extensive protection against damages, including even those which are caused due to external factors other than on-road incidents. It’s a broader coverage that comes with add-ons and an array of benefits such as engine protector, medical cover, and zero depreciation. Comprehensive coverage plans are generally priced higher than third party car insurance as it offers an end-to-end protection to the insured.

Third party coverage: Under this plan, your insurer will cover all legal liabilities arising due to your vehicle’s involvement in a damage caused to third party. It’s basically a part of the comprehensive package but some companies offer third party coverage as a standalone plan. The very concept of this plan is to compensate for an on-road incident that would have caused considerable losses to a third person.

Collision Coverage: Collision coverage acts as a reimbursement plan which covers all financial losses incurred following an accident involving your vehicle. It is to be noted that collision coverage does not include vandalism, fire, theft, and other such losses.

Major car insurance companies in India

Having known the types of plans, let’s now move on to the next important section of car insurance, which is loan comparison. Loan comparison is an important step that impacts your car ownership lifecycle to a great extent. Therefore it is advisable that you match the policy offers of different insurers before finalizing your insurance deal. Listed below are some of the leading companies that offer car insurance plans:

  • Bharti AXA
  • L&T Insurance
  • HDFC ERGO
  • Bajaj Allianz
  • Reliance General Insurance
  • IFFCO-Tokio
  • New India Assurance

Tips to reduce the premium outgo

  • By paying for minor losses from your pocket, you can save a lot on the cost of premium. You can reduce the cost of premium up to 30% by agreeing to pay for petty damages.
  • You can reduce your vehicle insurance premiums by maintaining a safe and secure driving pattern. A clean driving record can earn you bonuses which accumulates with every claim-free year.
  • Most of the latest cars have security features like remote locking, theft alarm, and the like. It is better that such vehicles be insured for a lesser premium amount.

Cases not covered under your vehicle insurance plan

  • Occurrence of a damage when the policy has lapsed
  • Damages occurred when driven by a person without a valid driving license
  • Losses or damages occured as a result of operating the vehicle beyond limits specified by the manufacturer
  • Damages to engine because of oil leakage

A basic understanding of the car insurance mechanism will always help you get the best deal for your vehicle. Making your important financial decisions involve a little bit of homework on your part, which has been made easier with the third party web portals and apps these days. From comparing loan products to getting quotes, these platforms provide a myriad of services to help you choose the right insurance product.