The BuyT Team
You spend ample time before finalizing your dream car. It is equally important to research patiently before choosing car insurance. It is a legal mandate under the Indian Road Safety Act and the Indian Motor Vehicles Act to buy car insurance. However, the need for appropriate car insurance is not limited to the legal requirements. Car insurance is necessary for the safety of self, co-passengers, other travellers, and the car. Do not hurriedly select any car insurance, but calmly understand the insurer’s credibility and the features of the car insurance before selection. A car insurance policy that meets your personal needs is the best. For instance, you can opt for a policy with helpline and roadside cover if you frequently drive long distances between cities. Let us discuss the factors pertinent to the selection of suitable car insurance.
Third-party insurance Vs Comprehensive car insurance
As per the law, a third party car insurance is mandatory. A third-party refers to anyone other than the insurer or the insured person. This insurance covers third party liabilities like damage to vehicle, death or injury of the driver, and property damage. Also, it provides personal accident cover for the death and injury of the insured person. Comprehensive car insurance insures you and your car and accounts for the third party liabilities. It also insures your car against vandalism, theft, damages due to falling objects or a bird or any animal, natural disasters like floods and hurricanes, and fire. Comprehensive car insurance gives you broad coverage and thus making it a better insurance policy. However, it has even more to offer. If you do not file a claim in a year, you receive a No Claim Bonus (NCB) in a comprehensive car insurance policy.
Moreover, you can customize the policy with add-ons as per your requirements. Third-party car insurance lacks the options of customization and NCB. For its advantages, comprehensive car insurance is costlier than third party car insurance.
Premium Amount
The cost of a product is an important determinant of the purchasing decision. Choose car insurance whose premium you can pay without any burden. Insured Declared Value (IDV) of a car refers to the maximum claim amount under a car insurance policy. It decides the premium. The car’s engine’s cubic capacity and geographical location are other determining factors for the premium. Add-ons to the insurance policy increase the premium.
In the same way, opting for voluntary deductibles reduce the premium. You share the cost of car repairs in an insurance claim when you opt for voluntary deductibles; therefore, the premium reduces. You can choose a bundled insurance policy for all the cars in the house to enjoy the benefit of a discounted premium.
Credibility of the Insurer
It would be best to choose an insurer who has a high claim settlement ratio (CSR). This ratio reflects the number of successful claim settlement against the number of filed claims in a year. A high CSR indicates a high probability of a claim settlement. You should also understand the claim settlement process of the insurer/insurance policy before purchasing the policy. A complicated claim process increases your troubles than solving them. A quick and easy online claim settlement process reduces your hassles.
Terms and conditions of the policy
Understanding the terms and conditions of the car insurance policy before purchase is necessary for hassle-free claim settlement. You should be well aware of the inclusions and exclusions, types of add-ons and deductibles, and the policy’s claim process. The terms and conditions of car insurance should be compatible with your personal needs.
