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Some basic checks while choosing car policy

An unfortunate incidence can occur anytime and anywhere, even an experienced driver cannot avoid the risk factor while driving in spite of not being at fault.  In today’s time of rising inflation costs, even a minor accident or a slight bump can result in huge repair costs. The only way to be prepared for such circumstances would own a suitable auto insurance cover.

Car insurance covers you against losses that might occur due to theft, damage due to accidents, natural incidences like fire, earthquake, storm, etc. or vandalism and theft. You will have to pay a certain amount as premium costs to the insurance company and you get an assured sum when you’re in dire needs.

Owning car insurance is mandatory if you wish to drive your vehicle on roads. It could be tricky if you’re unable to choose the right cover and the right insurer. Here are some basic checks while choosing your car insurance policy:

Assess

Before you buy an insurance policy, it’s essential to understand the types of covers available in India. There are two types of cover third-party liability and comprehensive cover. It would be wise to analyze and decide the amount of cover you need. No need to unnecessary adds-on on your policy.

While deciding on your coverage needs, ensure you choose amount equivalents to the total value of your car. While it's not good paying unnecessarily high premiums but it’s also unsafe to be underinsured as you will have to shell money out of your pockets. 

Compare

It would be the next wise step to compare the quotes before purchasing an insurance policy as it will help you save hefty amount and provide better coverage options as well. Comparison platform allows you to do a detailed comparison between insurance companies on the basis of their financial track, claim settlement, reputation, market value, etc. You can visit online forum sites to check customer review, talk to friends or family members on company performance. This comparison will help you save around 30% to 40% on the premium costs.

Look for Discounts

You should constantly be on a hunt for a discount that can reduce your premium and make it easier on your pockets. Factors like good driving records, anti-theft system, paying from particular credit/debit card, festive offers can fetch you good discounts. Make sure you explore all the available options about your car before buying the insurance policy. Don’t go for additional purchase and increase unnecessary costs on your premium.

Add-ons

Add-ons help to customize your car insurance cover as per your need and requirements. Insurance provides you with tailored solutions that specifically suit your needs based on details like the age of your vehicle, make and model, registration, and other factors. Experts say invest a small amount of money for additional benefits like zero depreciation, roadside assistance, engine cover, and personal cover. It may increase your premium to a slight extent but offer wider coverage both to you and your car.

Don’t Undervalue

Premiums of your car insurance are decided on the based on Insured Declared Value (IDV) of your vehicle. You can increase or decrease the IDV of your vehicle as per your premium needs. But expert say don’t undervalue your car as it can create issues during a claim. It will give low coverage amount.  So, compare policies online and buy the best insurance deal for your motor vehicle!

Types of Motor Vehicle insurance Policies in India

Since its invention, the vehicle has proved to be a great gift to mankind. It not only offers comfort but gives you a sense of power. But, we all know, with great powers, great responsibilities are associated. And in this case, a major responsibility is buying a vehicle insurance policy.

Why is it Important?

As per the Motor Vehicle Act of Indian legal system, third party liability insurance is compulsory for every vehicle that runs on the road. Permanent injury or/and death of a third party is covered by third party insurance. Damage to a property of third party also comes under this liability. An individual has to pay a fine of up to Rs. 2000 or serve the term of 3 years in jail or both if his/her vehicle is not insured.

If we talk about the benefits to the vehicle owner, s/he gets rid of the worries related to repair in case of an accident. Not only a lot of money is saved, but the hassles related to the repair process are also managed. A lot of companies are also offering roadside assistance to help the car drivers in case an accident takes place. The vehicles are also covered against natural disasters and human calamities, which further adds to the importance of insurance.

By the type of vehicle on the roads, there are three types of motor insurance popular in India.

Car Insurance

With India being the sixth largest manufacturer of cars in the India, the number of cars on the roads ought to be massive. This is also the reason car insurance is the most popular form of motor insurance in

the country. The car insurance covers legal liability to a third party due to accidental damages. Damage or loss to a vehicle due to man-made or natural calamities is also covered in most of the policies. The policies also offer personal accident cover, along with optional cover for co-passengers.

A lot of car manufacturing companies are offering insurance in a bundled form with the new cars. Let’s have a look at some major features of car insurance policies available in the market.

[Source: https://www.comparepolicy.com/blogs/types-of-motor-vehicle-insurance-policies-in-india/]

Key factors to look for in a motor insurance

With any policy document the major part of it is the legal terminology. As most of us aren’t familiar with the legal terminologies stated in the documents we often misread or misunderstand some aspects of the insurance. The same thing happens in motor insurance policies. The individual end up buying a motor insurance policy with limited knowledge and understanding of the coverage and eventually face problems while the claim settlement. However all the companies having a website available with complete product details, it has become easy for any individual to understand various aspects of the motor insurance policy. Moreover with the insurance compare websites, the individual not only buys a motor insurance but also gets a better idea and understanding  of the features if  the policy. He can also compare the similar insurance plans offered by different companies in the market. But to ensure that you are getting the best motor insurance online the individual must consider some key factors which are stated below:

What are the key factors an individual should look for? Take a look.

Cheap isn’t always the best:  motor insurance premiums play an important role in the mind of the insurance buyers. The rate of the premium is something that an individual should look at before deciding on which insurance to buy from which agent, but it is not the only singular factor.  Due to the concerns around the affordability, most of the individuals opt for cheap and affordable policies which turn out to be heavy on their pocket in the claim situation. The cheap insurance may not always provide sufficient coverage in case of the unseen circumstances.

Comparing of different features of different car policies:  the sole purpose of getting a motor insurance is to protect you against the financial loss in a situation of crisis like an accident or any mishap. Therefore make sure that you have conducted a comparative study of benefits along with the benefits of different car insurance policies available. A comparative study will not only help you  in getting an affordable car insurance premium but you may also find you more benefits in form of coverage and the claim settlement.

Opt for deductibles when you buy a car insurance policy: by including the deductibles in the car insurance policy he tends to automatically reduce the premium amount. As a result the individual needs to pay fewer premiums which would have otherwise gotten higher.

Look for discounts: when the person is doing comparison for the motor insurance, enquire about the discounts that are available on the motor policies which suit your budget. Also look for the eligibility criteria for the same.

Claims settlement ratio:  At the end of the day the key purpose of the motor insurance is to give you financial security during the crisis situation like accident. Therefore before the individual needs to pay for car insurance premium ensure that the insurance company you are planning to choose has a good claim service record so that you are not disappointed at the time of the claims.