Car insurance is a contract between the vehicle’s owner and insurance company to protect us against any financial loss such as accident, theft, and more. Buying car insurance is a very strategic decision in India. Not only it keeps your car safe against any financial loss, you are also legally bound by RTO to have a valid car insurance while driving the vehicle.
Now car insurance has become customer friendly and buying the insurance has also evolved from over the years. We can now insure a car within 180 seconds via the insurance agent's or company's website or their app.
We must consider some points while purchasing car insurance in India and these points are described below in this article:-
Understanding priorities and requirements
Purchasing a car can have risks sometimes. But for living some risks are mandatory. We should think deeply for few minutes that why we need an insurance. We need insurance if the area is flood prone, car theft in neighborhood, regular travel route are free from accidents. Think deeply and find the solution to get rid of these risks through purchasing correct car insurance.
Considering the brand
When we purchase any four wheeler we consider car's brand. Similarly, we should also consider about car insurance company's brand. Check out the claim disbursement reputation and service of insurance company.
The range of cover
Some people purchase car insurance just for show but some purchase it with the intention of saving money in cases of emergency or accident and meet legal requirements. In most cases, the second option is easy and better. When we purchase wide-ranging cover in the form of a all-inclusive plan, we should not only stick to law but should also ensure the insurance coverage for the points mentioned in the policy. The add-ons can also help in further expansion of the coverage.
Extra points in cover
We should purchase add-ons with practical knowledge. We should acknowledge then as small covers that can be linked with the complete plan. Each add-on has its own market value which can differ from one company to another. Thus don't become a shopping spree and select those points which are important in your priority list. Contrarily, insurance bill can give huge shock.
Know the fundamental plan
The binding part of a car insurance policy is also known as the 3rd-party car insurance cover. According to this, the insurer will help if the car damages the 3rd-party person or their property. It also has Personal Accident Policy for the vehicle's owner or driver. This accident policy provides coverage for permanent disability or death due to insured vehicle's accident.
Terms and conditions of policy
Nowadays, insurers are devoted towards simplifying the insurance policy. Due to responsive websites, friendly apps and helpful executives, etc. ; when it comes to online purchasing or renewing of the car insurance policy, the policy seekers and holders gets less bullied. We should thoroughly read the terms before buying a policy or raising a claim because insurance is a contract and these terms are very important.
Cashless means here that we do not have to pay beforehand when it comes to setting claims. The insurer can make the payment directly to the garages they form a network. This wide network between insurer and garages can offer the cashless services more efficiently.
The Insured Declared Value (IDV) of a vehicle is referred to as the car's current market value. The insurers allow us to select the insured car's IDV from a given range. If someone choose lower IDV, the person has to pay lower premium to insure the car as compared to paying more premium with higher IDV.
The golden rule for online shopping is to compare car insurance before purchasing. We have to ensure that comparing policies should have similar coverage. We should also consider the insurer's online review and overall service result.
If we tell the insurance company that we can share the risk of insuring car, the insurer can reduce the premium to compensate. When we volunteer to pay some percentage or amount of the claim and the insurer reduces the premium in return.
Periodically, the Insurance Regulatory and Development Authority of India (IRDAI) publishes the claim settlement ratio for insurance companies on their website. This is referred to as numbers of claims raised and settled. It is guideline for insurers to settle the claims.
Theft prevention devices
Devices such as alarms, locks, trackers, etc. helps the protection of the car. This also helps in reducing the chances of car theft and also reduce the insurance premium. Install the device which is certified by the Automotive Research Association of India (ARAI).
Insurance offered by dealers
Mostly, car dealers have links with the insurance companies. We can ask about coverage offered by the policy from our car dealers. For changes, we can also opt for insurance provided by insurance company instead of our car dealers.
Usually 'portability' is used in mobile network providers. In this it is referred to as switching between network providers. This same concept is used in car insurance providers. We can switch easy to different insurer if we doesn't like the services or plan offered by them. It is not a lifelong commitment, we can part ways from the insurer while renewing the plan.
Everyone like discounts
Pay less and get more but discount does not apply to 3rd party plans. Discounts are only available on comprehensive plan because rates of 3rd party policies are standardized and it is decided by IRDAI. However, the premium of the policy is decided by the insurance company offering the plan.
Purchasing insurance online is more convenient and beneficial. It prefers over the old traditional offline system when it comes to pricing, convenience, services, etc. due to this their operational cost of employees gets reduced. Because of all this reasons, insurers provide insurance at low price. Digital insurance companies does not require any physical documentation and we do not have to upload our papers om the websites or apps. In many brands, we can online insure our cars with zero paperwork in few minutes. Online digital insurance companies provide both 3rd party and comprehensive plans.
Stress free offers for claims
The insurer should not just provide low priced policies but should also provide stress free claims. Every insurance company have different offers for claims and claiming process. Some brands provide services like they pick our cars from our homes, repair them and send them back to our homes within 3 days, conditions applied.
The insurer should provide customer-friendly service offers. The insurer must see the priorities of the customers. The insurer should support customers while purchasing the plan, answering post-purchase queries or guaranteeing claim settlement, the service results should be high.
Even generous spenders should keep a tight budget for car insurance expenses. A bounded budget will help in purchasing only essential add-ons instead of buying all kinds of coverage.
If something is improved or adapted in the car, we must inform the insurer before-hand. The insurer may inspect the car with modifications if needed. If the insurer is not informed about these improvements before the claiming process, they might reject the claim it is involved to the adapted parts.