From Solo Commutes To Family Rides: Choosing The Right Insurance Policy For Your Car

What are the Main Options for Buying Car Insurance?

In India, there are 2 main types of car insurance you can buy:

• Third-Party Insurance

Third-party insurance protects you against third-party liabilities. If you are involved in an accident while driving your car, and a third party suffers loss or damage, then they may demand reparations from you. In such a case, third-party insurance will cover your liabilities.

As per the Motor Vehicle Act of 1988, a car owner must have a third-party insurance policy for car. Not following this rule can lead to penalties and imprisonment.

• Comprehensive Insurance 

As the name suggests, this type of policy provides comprehensive coverage. It covers third-party claims as well as any damage suffered by you and your car. It also covers damage due to man-made and natural disasters.

Factors to Consider While Buying a Car Insurance Policy

Here are some of the factors you must consider while buying car insurance:

1. What Are Your Requirements?

Having a solid understanding of your vehicle and your needs. Some of things you can do are:

• Reflect on your driving patterns to determine your insurance needs.
• Assess the market value of your car to establish the Insured Declared Value (IDV). 
• Take into account where you live and where you typically drive. 
• Consider the make and model of your vehicle, as these details can influence your coverage options.

2. Compare Plans

Choosing a car insurance policy can be overwhelming due to the numerous options on the market. This abundance of choices might leave you feeling confused. However, you can easily overcome this uncertainty by comparing vehicle insurance online. You must consider factors such as premium and coverage offered to decide which plan suits you the best.

3. Calculate The Insured Declared Value (IDV)

The IDV shows the market value of a vehicle after accounting for depreciation. It plays a crucial role in deciding the premium and how much coverage you get. Carefully estimate the IDV. Your claim could be rejected if you state a wrong IDV. 

4. Assess Customisation Options With Add-Ons

Car insurance needs can vary significantly depending on the type of vehicle. Many insurance providers offer a variety of add-ons that allow for greater customisation of coverage.

Therefore, when selecting a car insurance policy, it's important to review the available add-ons. By evaluating the add-ons, you can make an informed choice to get the best coverage.

5. Choose An Appropriate Deductible

The deductible is the amount you will pay out of pocket before your insurance coverage takes effect. Generally, opting for a lower deductible results in higher premium costs, while a higher deductible can reduce your premiums. It is important to select a deductible that aligns with your requirements.

6. Assess The Insurer's Reputation

It is crucial to consider the insurer's reputation and customer feedback. You can check online reviews to see how well-received an insurer is. It will help you decide what to expect from your insurer. 

7. Keep An Eye Out For Savings

Car insurance companies frequently provide promotions and discounts. It's wise to stay alert for these opportunities. If you come across a favourable offer, you could see a substantial decrease in your insurance premium.

8. Review The Claims Procedure

It is important to know the claims procedure for your insurance plan. This will help you when you need to make a claim. On the other hand, not knowing the claims process can lead to difficulties when you actually need coverage.

9. Review The Renewal Procedure

Make sure to evaluate the renewal procedure. Ideally, you should have the option to renew your car insurance online quickly and easily. Remember, renewing your car insurance is just as crucial as purchasing a new policy.

10. Understanding Claim Settlement Ratio

The claims settlement ratio shows the ratio of the number of claims settled to the number of claims made in a year. Before selecting a car insurance policy, it's essential to evaluate the claim settlement ratio of the insurer. Choosing a provider with a high claim settlement ratio increases the likelihood that your claim will be successfully approved when needed.

Bottom Line

A car insurance policy shields your finances from unexpected events such as theft or accidents. To ensure your financial security, it's essential to select the right car insurance plan tailored to your needs. When evaluating options, consider factors like premium rates, and coverage details. Keep in mind that premium costs can differ based on the specific plan you choose and any additional riders you may wish to add.

Also Read: Renew Car Insurance Online — Best 7 Tips