7 things to consider before buying car insurance

As per the Motor Vehicles Act of 1988, every vehicle being driven on the Indian roads needs to be insured. Car insurance is broadly classified as Third-party insurance and Comprehensive insurance. Though the former is mandatory by law, the latter becomes a matter of choice.

What to consider before buying car insurance?

Don’t walk blindly to buy car insurance. It is important to know the below few things before embarking on the process:

  1. Know your coverage

Before you plan for buying car insurance, understand your coverage. Ensure you cover your car adequately. It is not advisable to be covered insufficiently. But, paying huge premiums is also senseless. Knowing what is covered and what is not covered in your policy becomes an integral part.

For Example, third-party car insurance is mandatory by law. Theft and accidental damage form a part of the third-party insurance but repairs pertaining to all parts of the car are not covered. For that, you need comprehensive insurance.

  1. Shop around

“Shop till you drop”. As the phrase conveys, go on a vigorous search for different insurance companies. Some online insurance portals provide an excellent comparison of different insurers. This comparison is on the basis of premium, claim settlement ratio, policy features, etc. With the online shopping spree, you can narrow down your search on the best policy as per your need. By following this practice of research, you would save your time, money and energy.

  1. Don’t feel shy to ask for discounts

Don’t be surprised if you are rewarded for being a good driver. Yes, you can avail of a No Claim Bonus(NCB) between the range of 20-50% on your premium up to 5 years for being a good driver and not making a claim. Also, if you install anti-theft accessories on your car, you get a discount on your premium.

  1. Opt for Add-ons

A standard car insurance policy does not offer insurance for certain damages and events. In this case, add-ons would come to your rescue. Bumper to bumper, paid driver cover, engine protector, roadside-assistance you should opt for. All you need to do is pay a little extra to cover all your risks. But, don’t forget to opt for the ones that best suits your car.

  1. Declare the Insured Declared Value (IDV) correctly

Insured declared value or the IDV is the factor that decides the premium of the car.           Always ensure that you declare the value of the car correctly. Lower the IDV lower would be the premium.  If the IDV is incorrect, you would then have to spend money from your own pocket in the event of total damage when you make a claim.

  1. Claim settlement ratio

A good insurance company is recognized on the basis of its claim settlement ratio. Opting for a company with an excellent claim settlement record would be like a cakewalk. Easy and hassle-free claim settlement is what you should look for in any insurance company. No one likes to keep paying the premiums while having the claim getting rejected time and again.

  1. Customer Service

Look for a company that is good not only before buying insurance, but also post-sales. What’s the use of opting for a company which does not have a strong customer support service? Go online and check the reviews of the company you want to opt for. Ensure that the company has a 24*7 customer support and that the details are mentioned in the policy document.

Just like you spend a good amount of time while buying a car, make sure you do the same while buying car insurance too. So, make sure you consider all the above factors before buying car insurance.

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