Right car insurance policy in India: Car Insurance customers, You’ve come to the right place! Our blog is here to help you make an informed decision when it comes to choosing your car insurance policy in India. Here are a few things you should know before making that important choice:
Insurance companies offer different plans with different features, and these plans come at various price points. -It is important that you do your research well before picking the right insurance policy for yourself because not all policies will be able to meet all of your needs. We’re here to help! Keep reading below for more helpful tips on choosing the best car insurance plan for you.
Right car insurance policy in India
-Most car insurance companies offer different types of plans in terms of coverage, so it is important to understand your needs before making a selection.
-If you have an older vehicle that won’t be used for business purposes then you can opt for a third party plan that meets your budget and offers the right amount of coverage.
-Vehicles that are used for commercial activities will require special attention when choosing an insurance policy since drivers are held responsible for any damage caused while they are operating the vehicle. You must choose a plan with full comprehensive or all risks coverage.
-Luxury cars may be viewed as status symbols by some, but due to their high ticket value they need higher levels of cover too – Full comprehensive or all risks coverage would be required for higher-priced vehicles.
-A plan with riders will give you added benefits, which are offered on top of the basic insurance coverage.
-Roadside assistance is a very popular rider that provides 24/7 services in case your car breaks down or has an accident.
-It is always better to have more than one option so keep your budget in mind while looking at different policies and their accompanying plans. Make sure you choose something within your means! Transacting with multiple companies will help you discover the right policy at the best possible rate.
Know your needs
When it comes to car insurance, there are two types of policies – Third-party Insurance and Comprehensive Insurance.
Third-party insurance is a mandatory requirement by law in India. It covers only damages to the third party. Under third-party insurance, you do not get compensation for the damages to your car.
A comprehensive car insurance policy, on the other hand, covers both third-party liability and damage to your car.
So, before you purchase car insurance, know your needs and select the best policy for yourself. If you are looking for a basic plan with an affordable premium, a Third-Party Liability Plan would be an ideal choice. But if you drive a luxury car, it is better to purchase a Comprehensive Insurance plan.
How much do you need to pay?
The premium amount of a car insurance policy is decided based on various factors such as the model and make of your vehicle, its age, annual mileage, etc. The sanctioned sum assured is the maximum amount that will be paid in case of a claim. It can range from Rs 10 lakhs to Rs 15 lakhs. If a higher sum assured is required for your car, you have to approach an insurer directly and get it approved.
There are many third-party insurance providers who offer comprehensive plans at affordable rates without compromising on customer service or claim settlement time frame. Ask around among family and friends before buying one for yourself
What kind of coverage should you look for?
Make sure that the policy is comprehensive and covers all kinds of damages to your car. Also, read the fine prints of the policy as there can be certain exclusions as well as conditions attached with it. One common exclusion is the damage caused by potholes on city roads. So if you own a luxury car or a sports utility vehicle, make sure it’s covered under the Comprehensive Insurance plan.
What about discounts?
In most cases, a third-party insurance provider offers a flat discount on the premium amount if you opt for online purchase. If you have opted for a Third Party Only Policy then go with one that has been online for the past 5 years at least if not more. Get a new comprehensive policy from a company that has been in the business for at least 10 years. Make sure they have a network of more than 75 branches across India.
If you are a loyal customer and have a good track record, most insurance companies offer discounts on your car insurance premium. Some even offer extra benefits such as free road assistance with every renewal/policy purchase. But make sure that these offers by the insurer are not available through other third-party insurers offering better rates.
What’s the best way to buy?
There are many ways to buy your car insurance policy online or offline. The easiest way is to go directly to an insurer’s website and get it done in just a few minutes without any paperwork required.. If you want to buy it offline, visit the office of your insurance provider or a financial institution that sells such policies and complete the formalities.
It’s always better to go for a Third Party Only Policy since full coverage car insurance is very expensive so you can save on low premiums. In case you need full coverage policy then opt for Comprehensive Insurance which will have an extra cost but cover all damages. Check out the discounts being offered by the different insurers before buying one from any online portal. You can also shop around among different websites to get a cheaper Car Insurance Quote Online.
Compare the plans
Comparing car insurance plans is important to get the best coverage at an affordable price.
-The sum insured should be compared for each plan.
-Inclusions and exclusions of the policy should be checked.
-The type of add-ons offered should be considered.
-The claim process should be looked into.
-Deductibles are another important factor to consider while comparing plans.
Finally plans should be compared on the following parameters:
-Cost of policy.
-Premium payment options.
-Service offerings and claim process.
Insurance Policy
The sum insured is what you can claim under your insurance policy. You can opt for higher or lower amount depending on your financial status, need for coverage and the value of the property to be insured. In case of an urgent requirement or if there are no other similar offers available this might become a critical parameter while comparing car insurance plans.
The premium paid should ideally cover for all risks that may arise in coming years including accidents, thefts and damages. It should not be a mere number in your mind or on paper but something that compels you to take up the policy and be associated with it.
Comparing car insurance plans
Inclusions and exclusions of the policy are important parameters when comparing car insurance plans. It is important to understand what is covered and what isn’t, however, at times there might be some overlapping between one insurance company’s offer and others’. You can then prioritize accordingly based on which features matter more for you
The type of add-ons offered by the insurer may turn out to be useful depending on personal needs. For instance injuries due to road accidents can be very expensive to treat, therefore check if medical aids under the plan cover such emergencies or how much they will cost you if you need to avail these services outside the insurer’s network.
It is important to keep in mind that the claims process largely differs between insurers, also there are some steps common in almost all policies which you should be aware of at the time of signing up for one plan or another. For instance, you can always request for an increase in sum insured later after purchasing the policy if your needs change over time and you require higher coverage.
However, this would come with conditions attached. Also if your vehicle undergoes any changes throughout its lifetime then it might have implications on your insurance claim among other things etcetera. The deductible amount attached to a car insurance plan determines how much costs can be passed on to you while processing a claim.
Ask about the add-ons
Are you looking for extra coverage on your car insurance policy? If so, you may want to consider purchasing an add-on or rider.
Add-ons are additional coverage options that can be purchased by paying an additional premium. They provide coverage against specific damages that are not included in your usual plan.
You must ask the insurer about the add-ons offered and choose the one that best suits your needs. However, you must know that add-ons are available only to comprehensive insurance policyholders.
Check the claim process
Car insurance is a vital purchase for any driver. You need to make sure you are getting the best car insurance rates possible, but it’s not always easy to find out what those rates are or how they compare. The only way to find out if you have good coverage and fair prices are by looking at your state’s Department of Insurance website. But there are other things that should be considered as well before buying a policy:
-Claim process -How much will I pay in deductibles? -Do I have enough medical coverage?
-What’s the percentage of uninsured drivers where I live?
Know about the claim settlement ratio of the insurer
When you are shopping for car insurance, it is important to understand the claim settlement ratio (CSR) of the insurer.
The CSR indicates the number of claims the insurer has successfully settled against the number of claim applications they received in one year.
It is better to purchase a policy from a company that has high CSR, as it would mean that you have better chances of getting your claim approved.
In case of an accident, you can approach your insurance company for help.
But in some cases where the insurer denies the claim, customers have to decide whether to drag their insurer to court and fight a legal battle or get their vehicle repaired on their own and move on.
Never provide any wrong information
What are the consequences of providing false information on your car insurance application?
A lot of first-time car insurance buyers tend to provide incorrect information about their age and driving history to reduce the premium amount. But such practices can prove to be a costly mistake at the time of filing a claim. If the insurer finds that the information provided is misleading then your insurance will be cancelled, so it is advisable, to be honest, and provide accurate details in your application form. Here are eight ways you may not realize could negatively impact how much money you pay for auto insurance:
1) Providing inaccurate answers
2) Leaving out important facts
3) Claiming you don’t know when you do
4) Not disclosing previous accidents
5) Misrepresenting vehicle usage
6) Omitting prior violations
7) Misrepresenting your credit history
8) Hiding the use of anti-theft devices.
Be aware of the policy terms and conditions
Be Aware of the policy terms and conditions
-Read the terms and conditions carefully before signing
-Check if the terms are favourable and meet your needs
-This is a critical step to avoid any legal hassles at the time of filing a claim
-Do not sign the document under any pressure or duress
