Availing car insurance is one of the best ways to safeguard your vehicle against unexpected damages and hazards. In India, it is mandatory by law for all car owners to secure their vehicles through an insurance policy. However, with a myriad of car insurance plans available to buyers, choosing the right plan becomes challenging. With an unending list of car insurance companies in India offering varied plans with varying features and price points, it is important for buyers to weigh all options before selecting the right insurance plan. So, if you are looking for an ideal car insurance policy to get your needs covered here are some important things you need to check for.
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#1. Determine your Needs:
Before you begin your hunt for the best car insurance, make sure to determine your needs. What you exactly want and what type of policy will get you covered for your needs are prominent parameters that you need to gauge. Basically, there are two types of vehicle insurance plans – Third-party insurance and comprehensive insurance.
As evident from its name, third-party insurance covers damages caused to the third party (individual/property/vehicle). It does not compensate for damages and repairs incurred to your vehicle. Whereas a comprehensive plan ensures you maximum protection – it covers both personal and third-party damages. Hence, to get the most out of your car insurance, opt for the right coverage wisely.
#2. Check Insured Declared Value (IDV):
The primary motive of purchasing car insurance is to receive requisite financial assistance in event of an accident or severe damage to the vehicle. Therefore, finding out the insured declared value (IDV) available on an insurance plan is of paramount importance. IDV refers to the maximum amount of money an insurance company pledges to pay to the insured in case of damages incurred beyond repair. Generally, the IDV is based on your car’s market value. The higher is your IDV, the higher is the amount you are likely to get on your policy.
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#3. Check Claim Settlement Ratio:
The claim settlement ratio signifies the percentage of claims an insurance company has successfully settled out of the total claim applications. A high CSR is indicative of the company’s efficient performance in resolving and processing claims. A lot of insurance companies in India follow an online claim process which just takes 20-30 minutes for claim settlement. Therefore, it is advisable to compare car insurance companies on the basis of their CSR.
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#4. Check Premium Rate:
The insurance policy you buy must fit your affordability. It should neither be too cheap nor too expensive but should offer the best value for money. Often people tend to gravitate for low premium quotes but this isn’t a smart bet. This is because such policies come with limited benefits which sometimes fail to meet your objectives of buying insurance. So, to reap the best out of your car insurance policy, check for its applicable premium amount before making a purchase decision.
#5. Look for Extra Features and Services:
Additional services offered by your insurance provider add value to your plan. They offer extra coverage and benefits such as roadside assistance, engine coverage, and coverage for specific situations. These extra features and services enhance your convenience and plan’s value. So, ask your insurance provider to acquaint you with add-on services available and then accordingly choose a plan that best fits your needs.
#6. Check the policy terms and conditions:
It is obvious that one should always thoroughly review the policy terms and conditions before buying a plan – but only a few people truly realize it. However, it is one of the most critical things to consider when looking for the best insurance plan. Dedicate enough time to understanding the terms and conditions of a plan to check their feasibility as per your needs. Sign policy documents only when you rest assured about everything. This will particularly help you during claim filing.
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Some additional tips to consider
- Compare car insurance plans from different insurance companies to find the best deal. When comparing check inclusions, exclusions, sum insured, claim process, and deductibles applicable on the insurance plan.
- Opt for plans with zero depreciation cover. These plans offer you compensation for the replacement of parts excluding depreciation so that you have access to a higher claim amount.
I hope this article provides you clarity on how to buy the right car insurance policy in India. Selecting a car insurance policy is not as difficult as it may appear. Abiding by the aforementioned tips will help you greatly in selecting the best plan suited to your needs. To summarize, always purchase an insurance policy from a company with a higher claim settlement ratio. Additionally, it is also important that the insurance policy you purchase comes with attractive features and services to provide you extra protection against unexpected financial setbacks.