So you have bought a car and now looking to buy new car insurance. You want the best coverage for your car within your budget. But with so many options available, how do you choose the right one? In India, it is not just about finding a third party car insurance policy that meets legal requirements; you also want one that protects you and your vehicle against damages. So, let us dive into some tips to help you choose the perfect car insurance policy that fits your needs and budget.
Tips to Choose the Right Car Insurance in India
Here are some tips to help you choose the right new car insurance –
- Understand different types of insurance coverage: Before you start searching for new car insurance plans, it is important to understand the different types available in the market. The three most common types of coverage are third party car insurance, comprehensive car insurance, and personal accident car insurance. Third-party liability covers damages caused to third-party property or persons. Comprehensive coverage provides coverage for damages to your car and third-party liability. Personal accident cover provides financial assistance in case of death or permanent disability due to an accident.
- Determine your insurance needs: Once you clearly understand the different types of coverage, it is important to determine your insurance needs. Factors such as the age of your car, driving experience, and area of your life can help you decide the coverage you need.
- Search and compare different insurance plans and providers: The next step is to search for different insurance plans and providers. You can start by researching car insurance online and comparing the plans offered by different insurance companies. It is important to read the terms and conditions carefully and understand the coverage provided by each plan.
- Consider whether you can afford the premiums: When choosing car insurance, it is important to consider whether you can afford them. Premiums can vary depending on the coverage you choose and the insurance provider. Choosing a plan that provides adequate coverage at an affordable premium is important. Make a comparative analysis of coverage-premium combinations while searching car insurance online.
- Look for add-ons: Many insurance companies offer add-ons such as zero depreciation cover, engine protection cover, and roadside assistance. These add-ons can provide additional coverage and protection for your car. It is important to consider the cost of the add-ons and whether they are necessary for your needs.
- Ask about the no-claim bonus: A no-claim bonus is a discount provided by insurance companies if you do not make any claims during the policy period. Ask the insurance provider about the no-claim bonus and how it can help you save on premiums.
- Understand factors affecting car insurance rates: Finally, it is important to understand the factors affecting car insurance rates. Factors such as the driver’s age, driving experience, and the car’s location can impact the premium. It is important to consider these factors while choosing the right car insurance.
- Check claim settlement ratio (CSR): It is the ratio of claims settled by an insurance company to the total number of claims received. It is an important factor to consider when choosing a car insurance policy, as it shows how reliable and efficient the insurer is in settling claims. You should choose an insurer with a high CSR, as it indicates that the company is more likely to settle your claim promptly and hassle-free.
- Understand the claim process: Before choosing a car insurance policy, it is important to understand the process. It includes knowing the documents required to file a claim, the time frame for submission, and the steps involved in the claims process. Understanding the process beforehand can help you avoid any confusion or delays when filing a claim.
- Know the difference between a cashless and reimbursement-based claim: There are two types of car insurance claims – cashless and reimbursement-based. In a cashless claim, the insurer settles the claim directly with the garage, and you don’t have to pay for repairs. In a reimbursement-based claim, you pay for the repairs upfront and submit the bills to the insurer for reimbursement. For cashless coverage, make sure the insurer has a wide garage network.
- Inquire about hidden charges: When you are about to buy a new car insurance policy, it is important to inquire about hidden charges that may not be mentioned in the policy document. It includes charges such as service tax, processing fees, and other charges that may be applicable. Knowing about these charges beforehand can help you avoid any unexpected expenses in the future.
- Read the terms and conditions carefully: Before buying and signing a new car insurance policy, it is important to read them before signing up for a car insurance policy. It includes the coverage offered, the exclusions, the premium amount, and the duration of the policy. Reading the fine print can help you understand the policy better and avoid surprises later on.
Types of Car Insurance Policies You Can Choose From
Listed below are the primary types of car insurance you can choose from:
- Third party coverage: Third party car insurance is the most basic and mandatory car insurance policy that every car owner in India must have. It covers the legal liability that arises when you cause bodily injury or property damage to a third party due to an accident involving your car. It does not cover any damage to your car or yourself.
- Personal injury coverage
It covers your and your passenger’s medical expenses and lost income in case of an accident, regardless of who is at fault. It also covers the funeral expenses in case of death. It can be very useful if you do not have a health insurance policy or if it has a low limit or a high deductible.
- Comprehensive coverage
It’s an optional car insurance policy, covering the loss or damage to your car due to causes other than collision, such as fire, theft, vandalism, natural disasters, riots, strikes, terrorist acts, etc. It also covers replacing your car keys or locks if lost or damaged. It’s usually subject to a deductible, which you must pay out of your pocket before the insurance company pays the rest. The higher the deductible, the lower the premium and vice versa.
Conclusion
Before you shell out money for your new car insurance plan, you must ensure that you are buying the right policy. Choosing the right car insurance protects you and your vehicle from unforeseen accidents. With these tips, you can make an informed decision that meets your needs and budget. You can drive safely and stay protected on the road with the right car insurance.