Planning to buy car insurance? As per law, you should get car third party car insurance as soon as you buy the vehicle. However, most of us forget the fact that minimal third party insurance is not going to save us from financial loss. You should go for a comprehensive insurance policy that not only provides third party insurance but also protects you from any financial loss. It is essential to keep a few points in mind while choosing the right insurance policy with or without required riders. Here are 7 smart tips to buy the best car insurance policy in India.
Type of car insurance plans
There are two options to choose from that are third-party liability policy and a comprehensive plan. Both of them have different features and have their benefits. Third-Party Insurance is cheaper and provides minimal coverage. However, it will not cover the damage caused to your vehicle. On the other hand, a comprehensive insurance plan will give both third-party insurance and financial support for the cost to own vehicle. It is better to opt for the comprehensive plan, but it is up to you to decide which will be a better fit for your budget and requirements.
Check for the riders or Add-ons
Every insurance company provides a list of riders for the customers. These riders provide additional covers such as Engine Protect, NCB cover, Protection Cover, and more. These add-ons will cover the damage that, generally, insurance policies do not cover. For example, a comprehensive insurance plan by most of the companies will not cover water damage to the engine. However, if you have opted for Engine Protect cover, any water damage will come under insurance cover. It is an excellent choice for customers who live in water-logging prone areas.
Availability of cashless garages
Every insurance company has an approved list of garages where the cashless facility is available. In such cases, the bill will be sent to the insurance company directly, and you won’t have to pay first and claim later. If you have a preferred garage, check which insurance company has an association with them for a cashless facility. In case you get the repair work done from a garage that is not in the list of approved garages of your insurance company, make sure to call a representative to check the damage. Take photographs of the cost and get an estimate before they start the repair work. Also, make sure to keep all the invoices with you. Do not go for repair without billing.
Appropriate insured declared value or IDV
In simple terms, IDV is the current market value of the vehicle. It is the most crucial factor in your insurance policy. The insurance company must fix the correct price of the car or IDV so that in case of an unforeseen accident or theft, you get maximum possible cover. Please do not reduce IDV to lower down your premium.
NCB or No Claim Bonus
There is a misconception that if you move your insurance policy from one company to another, you may lose your No Claim Bonus. Also, you need to keep in mind that NCB applies to the owner of the vehicle and not the car itself. The companies reduce the premium based on NCB every year, which starts at 20% and goes up to 50% in the coming years. At the time of the renewal of the policy, if you are planning to change the insurance company, make sure to check your NCB.
Claim history of the insurance company
One of the most critical factors that you need to check before finalizing your insurance company is to check the claim history. Make sure to choose the insurer that has a good claim history. The process of claiming the sum assured on your car insurance is a hectic task. You have to fill forms and attach required documents, which can be tiresome, keeping in mind that you are already going through a financial crisis. Make sure to choose the company that has a good reputation in terms of claims.
There are countless options available in the market, which makes the selection process difficult. There are some factors as mentioned above, which can help you in choosing the right policy for your car. You need to be careful about the premiums and avoid any lapses. It is advised not to go for claims for minimal damage as it will reduce your insurance coverage and will have an effect on No Claim Bonus too. Make sure your policy covers the theft of the vehicle, as well. It is true that third-party insurance, which is mandated by the law, is cheaper. However, it will not provide you the cover for the damage to your car. Thus, it is wise to choose the comprehensive plan with essential riders for accessories, etc. to avoid any financial losses.
