Buying a car is not just a luxury today but a necessity too. As it is bought with one’s hard-earned money it becomes more valuable and needs to be protected. No matter how safe you might drive, you will be at risk of car-related issues and you don’t want to live with that, right?

So, to minimize the risk of any car damage or accident, car insurance is required.

Car insurance protects you against losses resulting from accidents, thefts, or natural disasters. You can be financially secure in the event of any losses that may occur as a result of such unforeseen occurrences if you have a car insurance policy in place.

Also, for the safety of the citizens, the government of India had made it mandatory to have car insurance. Every two-wheeler, three-wheeler or four-wheeler you see on the road is insured. It is illegal to drive a vehicle without any motor insurance and every person who is willing to buy any sort of vehicle should be aware of this.

Types of Car Insurance

In India, there are two basic types of Motor insurance policies:

  • Third-party Insurance: This is the most basic type of Insurance available and having at least this type of insurance is required by law. Only third-party damages are covered under this policy. You are not compensated for the damage to your own vehicle.
  • Comprehensive Insurance: A comprehensive insurance policy, on the other hand, includes coverage for both third-party liability and one’s own vehicle damage.

Usually, a comprehensive policy is suggested to safeguard both your vehicle and you from any legal liability. It includes all the components at risk and will keep you safe from any sort of mishappening.

Buying Car Insurance

Motor insurance can be purchased both online and offline. However, with our busy schedules, many of us can’t take time out and go to the insurance office and get things done. However, the good part is you can buy your motor insurance at the comfort of your home or even while sitting at your workplace. So convenient right? Thanks to technology today.

We are done with our basics and by now we know that you don’t want to be caught driving without car insurance because the fines can burn a hole in your pockets. So, let us help you in buying car insurance by sharing the checks you should consider when buying car insurance.

Checks to Buy a Car Insurance

Understand the Policy

Before buying any vehicle insurance online or offline, you must first at least understand what a car insurance policy comprises. As previously stated, there are various types of vehicle insurance policies available in the market today. Take your time to determine your needs and requirements and choose accordingly.

Compare the Plans

Don’t just go with the first plan you come across. There are numerous insurance companies; each with its own set of benefits. You must carefully analyze all available plans and select the one that provides benefits that meet your needs. The simplest method to do this is to go to an insurance broking service that allows you to compare policies.

Add-Ons

Additional coverage options can be purchased by paying an additional charge for add-ons. They extend the policy’s coverage to include certain damages that aren’t covered by your standard insurance. When you are comparing plans, make sure that you look for these extras. Every motor insurance company has a large selection of add-ons that you can choose from. You can choose the ones you require based on how you want to utilize your vehicle. Keep in mind that the number of add-ons you choose will have a direct impact on your premium. So choose wisely.

Calculate the IDV

The current market value of your vehicle is also known as IDV. In case of any irreparable damage to your vehicle or theft, this decides the maximum amount of claim or sum assured your insurer would pay at the time of claim settlement. To arrive at this figure, depreciation is subtracted from the manufacturer’s selling price. It can also be equated to the current market price of your vehicle.

Examine the Claim Procedure

One of the most important reasons to buy motor insurance is to receive fast financial aid in case of any mishap. Therefore, you must pick insurance with a simple and speedy claim process. During an emergency, the last thing you want to do is go through a lengthy procedure to recover your losses. So, if you are buying motor insurance choose the one which has a quick response.

Learn about the Insurer’s Claim Settlement Ratio (CSR)

Before choosing insurance, make sure to check the claim settlement ratio (CSR) of the insurance company. The CSR compares the number of claims successfully resolved by the insurer to the number of claim applications submitted in a given year. It’s preferable to buy insurance from a company with a high CSR as the higher the claim settlement ratio, the higher are the chances of settlement of a claim.

Never Give any Incorrect Information

To lower their premiums, many first-time car insurance buyers offer false information about their age and driving history. However, such methods might be an expensive mistake when it comes to submitting a claim. Your insurance will be canceled if the insurer deems the information to be false. As a result, it’s best to be truthful and submit accurate information in the application form.

Reviews and Scams

It is not difficult to learn about a car insurance company’s history and reputation these days. Motor insurance firms and plans are listed and rated on a variety of websites and consumer forums. Read the feedback from current policyholders to help you make your decision. Also, avoid paying lower prices from motor insurance firms you’ve never heard of. There are likely hidden terms and conditions that you will only discover after filing a claim. So, stay safe from such scams.

Inquire with friends, relatives, and coworkers about their experiences with various car insurance companies. It is better to take advice from a known person or relative and who can give better advice and suggestions than them. This will make the work a little easier for you.

Keep the following information handy while buying car insurance:
  • Vehicle’s Registration Number
  • Information on any claims made in the previous year
  • Expiry date of old insurance policy
  • Vehicle’s Engine and Chassis Number

Now you know that buying Motor Insurance is not as hard as it sounds. Whether buying insurance offline or online make sure you do your research properly. Just keep the above-mentioned things in mind and you are good to go.