(Newswire.net — August 25, 2020) — When we buy a car, we usually do a lot of research and compare the different brands and make from what is available in the market. The choice also depends on our need, family size and purpose for buying the vehicle. Similarly we need to make the right choice for investing in car insurance. There are many car insurances available and we need to make the right choice by comparing the different policies available.
The right tips to consider to get the perfect Car Insurance Policy:
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Always Compare Before You Buy:
Never settle for the first car insurance agent you come across or the first car insurance online, always compare before selecting one.
Do a little home work of your own and become a detective. Find out the top providers in your area. Get feedback from existing customers about their services.
Policies can be compared based on coverage, inclusions, exclusions, premium amount, limitations, add-on facilities, optional covers, etc, and settle for the one that suits your budget and needs.
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Knowledge About the Third-Party Insurance: Whenever there is an accident or a mishap, the party who you had the accident with is the primary beneficiary of the policy.
The third party insurance cover extends to legal liability and other financial assistance. It provides cover for damages to third-party’s property, accident, death, bodily injury, total permanent disability, etc.
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Compulsory and Voluntary Deductibles:
With every claim you need to bear a minimum amount. This amount you pay is the compulsory deductible. The amount starts from Rs. 500 for a four-wheeler as per the IRDAI rules. You can be charged a higher deductible for an aging car with a higher claim-risk. The company can even charge a higher deductible on a car policy for vehicles with much larger volume capacity or in times when the risk of claim is perceived as huge.
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Claim Settlement:
Always choose a provider who has a high claim settlement ratio. They are more practiced and equipped in all case scenarios. Also someone who is an expert on zero depreciation car insurance. -
Personal Accident Cover:
Personal accident cover is very vital to search for when looking for car insurance. It will cover expenses related to you as owner of the vehicle. Anything can happen anytime. Protection over financial contingencies, accidental death, dismemberment of limbs, disability, injuries or hospitalization. -
Insured Declared Value of the Car:
If your car is stolen or completely damaged, IDV is the maximum amount you can claim under the policy.
The depreciation value is deducted from the selling price of the manufacturer and you get the IDV. It does not involve insurance cost and registration cost in this calculation. Zero depreciation car insurance can come very handy here.
The newer the car, the more the IDV value. Hence, knowing the Insured Declared Value of the vehicle is important before taking the insurance.
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Network Garages:
See the number of garages in your location. The more, the merrier for better will be the speed of immediate service required. Enquiring about the best insurer with a high number of network garages could help you make the right choice. -
Knowledge About No Claim Bonus:
No Claim Bonus or NCB is claimed only if you have not made a claim for the duration of the policy year. You are eligible for 5%,10% upto 50% of the IDV as bonus at the time of renewing the policy. -
Cashless Option:
When you choose a cashless option provider, it saves you from the endless hassles
of having to run around arranging cash. Quick availability of the provider is an important factor to keep in mind when choosing a provider.
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Car’s Cubic Capacity Matter and Geographical Location:
If you happen to live in a metro city, the insurance cost for the car will be higher as compared to an owner of the same model living in a rural area.
Similarly, the cubic capacity of the vehicle’s engine is also accounted for to calculate the premium. The higher the cc, the higher the premiums.
The tips mentioned above, one should certainly not avoid while buying a car insurance policy. It is best to take a comprehensive cover along with the mandatory third party insurance policy. This reduces risks, you stay protected and have a peace of mind, which is an absolute necessity for on road driving.