In India, most of us buy an insurance policy for our cars because it is mandatory as per Indian laws. However, you must remember that buying a car insurance policy is also important because it provides you with much-needed financial coverage in the event of any accidents involving your vehicle.
With various insurance companies offering multiple car insurance plans, it can be a difficult task to decide which plan to buy. To make this easier for you, we will take you through some points to consider when purchasing a car insurance policy. Let’s get started.
8 Points You Should Consider When Buying Car Insurance
You consider various aspects like features, specifications, mileage, etc. while buying a car. Similarly, it is important that you go through certain details when buying a car insurance policy. Here are 8 such simple yet important points you must consider:
1. Car Insurance Coverage
You must assess how much car insurance coverage you will need before you start looking for an insurance policy. Consider factors like the usage of your car, budget, etc., and then choose between a third-party car insurance cover and a comprehensive cover, accordingly.
2. Insured Declared Value (IDV) of the Car
IDV, or insured declared value, reflects the current market value of your car. This is the amount that your insurance provider will give you in case a claim is raised due to total loss or theft of the vehicle. As your four-wheeler ages, its insured declared value decreases. This leads to a reduction in the car insurance premium.
3. Car Insurance Add-On Covers
Go through the details of the various add-on covers offered by your insurance provider with a comprehensive insurance cover. These add-on covers help you enhance the coverage provided under a standard comprehensive plan. However, you must remember that you will have to pay an additional premium for each add-on cover. Hence, it is advisable to only buy car insurance add-on covers necessary for you. Some of the common car insurance add-on covers are zero depreciation cover, engine protection cover, roadside assistance cover, etc.
4. Insurance Claim Settlement Process
These days most car insurance providers offer the facility to file claims online. To ensure that you do not face any issues while filing a claim against your car insurance policy, remember to check the claim settlement process of the insurance provider, their claim settlement’s turn-around-time, and their claim settlement ratio (CSR). It is always a smart choice to opt for a plan with a lower turn-around time and a higher claim settlement ratio.
5. Compare Car Insurance Plans Online
One of the most crucial steps of buying a car insurance policy is to check and compare various plans that are offered by different insurance providers. You must analyse these insurance plans based on their coverage, inclusions, exclusions, premium cost, etc., and then make an informed decision.
6. Check the Policy Reviews
Another way of gauging the reliability of different car insurance policies is to read the online reviews of the insurance plans shared by verified car insurance policyholders. This will give you a better idea about the car insurance plans and the insurance provider.
7. Choose a Reputed Insurance Provider
It is a wise choice to buy your car insurance policy from a trusted and reputed insurance provider. This will not only ensure that you have a smooth journey while purchasing the policy but will also ascertain that the claim settlement process is efficient and hassle-free.
8. Install Anti-Theft Devices in the Car
You can install anti-theft devices approved by the Automotive Research Association of India (ARAI) such as trackers, locks, alarms, etc. This will be beneficial for you in two ways. One, it adds a layer of protection to your car and reduces the chances of theft. Two, it helps in reducing your car insurance premium.
Remember to consider the above-mentioned points if you are looking to buy car insurance online or offline for your precious four-wheeler. Following these points will help you choose the right car insurance coverage for your vehicle. You can also use online car insurance calculators to compare various plans and it is easier to use in comparison to understanding the crypto market.