How To Choose A Car Insurance Policy? 8 Things To Know Before You Decide

There are countless types of car insurance policies on the market. The ideal car insurance policy can be challenging to choose. To operate any vehicle in India, you must have third-party liability car insurance, per the Motor Vehicles Act of 1988. The costs of different companies’ insurance policies vary. Here are some suggestions for choosing the ideal car insurance coverage:

  • Understanding Your Needs

It’s crucial to evaluate your needs for yourself. Third-party car insurance online and comprehensive insurance plans are the two insurance policies available in India. Third-party insurance is required by law. Damages that are only related to the third party may be covered. It will pay for the harm that the other party endures. At the same time, the comprehensive insurance policy covers damage to one’s vehicle and third-party liability. A comprehensive insurance policy should also pay for all losses if a car is stolen.

  • Look Up And Compare Various Plans

Always compare different policies after deciding on the type of plan. This will assist in focusing the search. Make sure you use a car insurance calculator to compare the costs of premiums.

  • Ask For Add-Ons

Add-ons are the extra coverage components which can be bought by paying an extra fee of the premium than what was initially quoted. Only comprehensive insurance policy plans have it available. Claims are subject to terms and conditions set forth under the motor insurance policy.

  • Learn How To Claim

Understanding how to file an insurance claim is essential. Therefore, before purchasing an insurance policy, it is necessary to understand the claims process thoroughly. Claims are subject to terms and conditions set forth under the motor insurance policy.

  • Check The CSR (Claim Settlement Ratio)

Before buying a policy, consider the insurer’s claim settlement ratio. This ratio shows the number of claims the company has resolved compared to the total number of claims it has received in a given year.  Claims are subject to terms and conditions set forth under the motor insurance policy.*

  • Don’t Give False Information

The insurance company may immediately cancel the policy if it discovers that the information provided is false. Therefore, always give accurate information.

  • Carefully Review The Terms And Conditions

Before purchasing the policy, take the time to read the terms and conditions carefully. Every clause and requirement for the same must be understood.

  • Watch Out For No-Claim Bonuses

No Claim Bonus, also known as NCB, is a concession on premium payments the insurance company gives if the policyholder did not file any claims the previous year. This bonus is a payment made by the insurance companies to the policyholder in appreciation for using the car. If you did not submit any claims, you must check your NCB. Don’t forget to schedule your car insurance renewal before it expires to ensure continuous coverage. Claims are subject to terms and conditions set forth under the motor insurance policy. *

Choosing the right car insurance policy is critical for every vehicle owner. Understanding the key factors such as coverage options, deductibles, premiums, and the insurer’s reputation is essential. By carefully evaluating your needs and financial situation, you can make an informed choice that provides you with the ideal protection and peace of mind on the road.

*Standard T&C Apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.