A major life achievement for many people is getting a new car. In order to protect the car, which plays a significant role in one's life, it is crucial to select the appropriate auto insurance plan. Choosing an insurance coverage when purchasing a car for the first time might be difficult, but these suggestions will make the process easier.
1) Understand the types of car insurance policies: There are two types of car insurance policies - third-party liability insurance and comprehensive insurance. Third-party insurance covers damages caused by your car to third-party property or people, while comprehensive insurance covers damages to your car as well as third-party liabilities.
2) Compare insurance policies: Don't just go for the first insurance policy you come across. Research and compare policies offered by various insurers based on coverage, premiums, and discounts.
3) Check the reputation of car insurance company: When shopping for car insurance, it's important to consider the reputation of the insurance company. Here are some things to keep in mind:
a)Check the company's financial stability: You want to make sure the company you choose is financially stable and will be able to pay out claims if you need to make one.
b)Look up customer reviews: It's always a good idea to see what other customers have to say about their experiences with a particular insurance company. Check online reviews and ratings to get a sense of the company's customer service and claims handling.
c)Check for complaints: You can also check with your state's insurance department to see if there have been any complaints filed against the company. This can give you an idea of how the company responds to customer concerns and whether they have a history of disputes or legal issues.
d)Ask for recommendations: Ask friends and family members for recommendations on insurance companies they have used and have had good experiences with.
4) Opt for important add-ons: There are several add-ons that you can consider adding to your car insurance policy. Here are some common add-ons that you may want to consider:
a)Zero depreciation cover: This add-on ensures that you'll be reimbursed for the full cost of any repairs or replacement parts, without factoring in depreciation. This can be especially helpful for new or expensive cars.
b)Engine protection cover: This add-on provides coverage for damage to your car's engine due to flooding, oil leakage, or other mechanical issues.
c)Personal accident cover: This add-on provides coverage for medical expenses and lost wages in the event of an accident.
d)Roadside assistance: This add-on provides 24/7 assistance in the event of a breakdown, flat tire, or other roadside emergency.
e)No-claim bonus protection: This add-on ensures that you won't lose your no-claim bonus discount in the event of an accident or claim.
f)Key replacement cover: This add-on provides coverage for lost or damaged car keys, which can be expensive to replace.
10 best companies in providing car insurance online, in India
g)Return to Invoice: Return to Invoice (RTI) is an add-on cover offered by some car insurance providers in India. This cover provides additional protection to the insured in case of total loss or theft of the vehicle.
5) Understand the claims process: When choosing a car insurance company, it's important to consider the claims process as well. Here are some things to look for:
a)Reporting process: Look for a company that makes it easy to report a claim, either through an online portal or a 24/7 hotline.
b)Time frame for processing: Find out how long it typically takes for the company to process and settle claims. Ideally, you want a company that has a quick and efficient claims process.
c)Communication: Look for a company that keeps you informed throughout the claims process and is easy to get in touch with if you have questions or concerns.
d)Repair options: Find out if the insurance company has a network of approved repair shops or if you can choose your own repair shop. Also, find out if the company guarantees the repairs made by their network of repair shops.
e)Settlement amount: Look for a company that offers fair and prompt settlements and has a good reputation for paying claims.
f)Additional services: Some insurance companies offer additional services, such as rental car coverage or roadside assistance, that can be helpful if you need to make a claim.
6) Choose the right deductible: Choosing the right deductible: Consider your financial situation and your risk tolerance when choosing a deductible. If you have a high-risk driving history or you're worried about expensive repairs, you may want to opt for a lower deductible. If you have a good driving record and can afford to pay a higher deductible in the event of an accident, you may be able to save money on your premiums.
7) Read the policy documents carefully: When you buy comprehensive car insurance it's important to read the policy documents carefully. Check the policy documents to see what the coverage limits are for liability, collision, and comprehensive coverage. It is important to ensure that the limits are adequate for your needs. Look for any exclusions in the policy, such as damage from intentional acts or racing. In addition to the coverages, ensure that you understand what is not covered in the policy. Review the terms and conditions of the policy, including the length of the policy, the renewal process, and any cancellation fees.
When considering add-ons, it's important to evaluate your own needs and budget to determine which add-ons are worth the extra cost. Some add-ons may be more important for certain drivers or situations than others.
In India, purchasing comprehensive car insurance is a smart move. Along with ensuring that you abide by the law, it also provides financial protection against costs associated with auto repairs. The process of purchasing auto insurance has developed through time and is now more user-friendly. On the insurer's website or mobile app, you can insure a car in less than 180 seconds. While insuring your car, keep the tips mentioned in this article in mind.
Now that you are aware of the factors to take into account when buying car insurance in India, make an informed choice and buy the most appropriate plan. Do not be fooled by cheap marketing tricks. Understand the policy inside and out.