Encouraged about getting your hands on a new car? But, it is just as important as what is under its hood, so has to insure it. Learn the benefits of car insurance and comparison of some tips to choose the right coverage.
With increasing traffic density and constantly increasing car ownership cost, insurance has become rapidly important for car buyers in India. Whether to buy a new car or renew your existing car insurance policy, it is no longer enough to choose the first plan to come in your way.
This is about finding your driving style and ideal fit for the car, making sure you are ready to present the road. Comparing car insurance in insurers, types and features is the key to significant savings, better coverage and attaining peace of mind.
Car Insurance: Basics and Types of Coverage
At its core, the car is a contract between the insurance provider and the owner of the car. Under this contract, including an annual premium, the insurer provides financial coverage to the policyholder in the event of an accident, natural disaster, fire, theft, etc., originally, the insurance company compensates for any damage to the insured car, its residents or any third-sided liabilities.
Typically, there are two types of car insurance- third-party and broad. Third-party car insurance provides coverage only for third-party liabilities, such as injury or death of a third person or damage to their property. On the other hand, a comprehensive car insurance policy damages third-party liabilities as well as insured vehicles. While it is mandatory for vehicle owners to insure your cars at least third party policy by Indian motor laws, selecting a comprehensive plan provides a comprehensive coverage.
Why is it important to compare car insurance?
When it comes to car insurance comparison, the following aspects come mainly in the game:
- Policy premium, The amount you pay annually or monthly
- Coverage type, Inclusion in policy (risk and disadvantages)
- Add-on cover, Additional coverage you can choose, such as zero depreciation, 24×7 roadside assistance, engine protection, etc.
- Claim, Ease and disposal time of claims and customer aid
Let’s break them down.
1. Get the best price for your money
If you are buying a car insurance policy, then you definitely want to be premium cheaper. Whereas Irdes Third-party insurance controls the rates of policies, there may be a significant difference in the premium of comprehensive car insurance policy from two different insurers.
Therefore, by comparing car insurance quotes online, it will be easy for you to choose a policy that provides the best price for your money. This will help you to know the discount given by different insurers so that it can eventually help you save a significant amount on purchase.
2. Understand features and benefits
A comprehensive insurance policy comes with hosting facilities and benefits. But they may vary significantly between policies and insurance providers. When you compare motor insurance, you will know the various features and benefits involved in different policies.
You can buy a policy that conforms to your needs. For example, only some car insurance policies come with coverage for CNG fuel kits. If you have CNG in your car, you should buy a policy that covers it. Online comparison can help you understand the characteristics of many insurance policies that enable you to make an informed purchase decision.
3. Know the inclusion and exclusion
Despite the type of insurance policy you purchased, you have to read the policy documents carefully. Policies come with several inclusion and exclusion that can affect your purchase decision.
Without understanding the policy in detail, exclusively exclusion, you can end with a policy that does not meet your needs. With an online four-wheel insurance comparison, you can detect policies that offer coverage at your wish.
4. Choose the best add-on
There are ad-on additional covers that you can buy with your car insurance policy. For example, zero depreciation, 24×7 roadside assistance, engine protection, and NCB protection are some popular ad-on.
With the help of these ad-on, you can increase the scope of your car insurance policy. At the time of comparing policies, you can look for a variety of ad-ons available with the policy. Then you can easily choose a feature-pack, competitive price policy that also provides add-on which you think will be useful for you.
Factor to consider when comparing car insurance
Keep these aspects in mind when purchasing insurance for your new car:
1. Decision based on advice from friends and family
Choosing a policy based on advice from family and friends is the easiest task but it can prove to be long -term harmful. Insurance is not a function of a size-fit-all approach, as the premium depends on many factors such as the age of the vehicle, the place of living, the car model, etc.
2. Buying the lowest premium policy
While anyone can be pleased to obtain a car insurance policy with low premiums, ideally, it must raise questions; How can the insurer be able to provide a cover with such a low premium amount? Is the insurer reliable? Often, a low premium amount means low coverage. Therefore, basically, you risk paying more for costs and losses if you do not go through the policy offering. Therefore, to avoid the stressful situation later, you must assess the risks involved and ensure that your policy covers them.
3. Offline to policy
In the era of digitization, customers stand to be the most profitable and it also spreads to insurance. Finally, why buy a policy offline when you buy car insurance online, effort yourself, paperwork and more importantly, can save yourself from time. Also it provides very good convenience as you can choose from a series of online car insurance options and make the best decisions to suit your home or office comfort!
4. No comparison of insurance plans online
When selecting the trouble-free method of buying car insurance online, customers ignore a major benefit that provides medium online-ease in turning. Comparing various car insurance plans on the proposal is important to make an informed option. A car insurance calculator further helps to understand the scope of potential costs and many other insurance-related parameters. In addition, it is easy to use and provides immediate results!
5. Not reviewing policy documents completely
There is little effort in reading your policy document that there are no discrepancies when you raise the claim. It is important to understand the scope of policy, inclusion and exclusion and other characteristics. For example, a motor insurance policy will not cover normal wear and tear, mechanical/electrical breakdown, driving without a valid license, and your legal liability safety towards your paid driver, etc. Always remember that car insurance is a legal document; To be informed will prevent any surprise during the claim in unexpected events.
Tips to choose the right car insurance coverage
Here are some suggestions that help you choose the right type of car insurance policy:
- Review your requirements, first things first! Before you buy a four-wheel insurance policy for your brand new car, carefully review your coverage needs and budget. For example, if you only want legal and financial security against third-party liabilities, then only invest in a third party policy. But, if you want a comprehensive coverage, you can choose the option of a comprehensive plan.
- Do not trust dealers, It is your choice whether you buy car insurance from the showroom or from elsewhere. The dealers can give you some ‘additional benefits’ to buy a policy from them that you will not find anywhere else; Which is not true. You can enjoy the same coverage and profit by purchasing a trusted insurer directly online or offline. Alternatively, you can also buy a policy from insurance aggregators like Policybazaar.com.
- Carefully compare policies, When you look for online car insurance options, you get to compare schemes offered by various insurers based on various parameters. For example, when you choose to choose Policyman car insuranceYou can choose from 20+ car insurance companies, compare their features, premiums, as well as ad-on cover, and then create an option.
- Check the insurer reviews, When selecting the right car insurance coverage, knowing the credibility of the insurer among important stages, for which one of the easiest methods is to check your CSR (claim settlement ratio). A high CSR indicates that he has settled over claims in a year. Typically, more than 90% of CSR is beneficial. In addition, there are other criteria to decide the number of network garages, cashless claim facilities and exemption given exemption.
- Choose ad-on sensible, Car insurance add-on enhances your policy coverage but they come with an additional premium amount. Since not all ad-on covers are necessary, you only have to choose those who really need your new car.
In short
With cars becoming more expensive and technically advanced, insurance companies should be customized. A gap between a good and great policy can lead to significant savings or very smooth recovery from an accident. Therefore, when the date of your renewal comes next time, just do not renew your policy. Take a good time to compare different car insurance plans. Your car – and your wallet – will be thankful.
