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MAJOR FACTORS TO CONSIDER WHILE BUYING A CAR INSURANCE

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MAJOR FACTORS TO CONSIDER WHILE BUYING A CAR INSURANCE

So you have decided to purchase a car and are working your way through the financing process, feels ecstatic. Have you decided on car insurance yet? Car insurance is not something that you can buy immediately or can buy later, but it needs due diligence and is mandatory with a car, whether it is new or old.

Though car insurance is vital to drive a car on road, the sole purpose of car insurance is to safeguard your car from the financial consequences in case of an accident, theft or loss in the event of natural occurrences, etc. 

If you are planning to buy car insurance, be prepared for any eventuality and therefore select the right car insurance. Here are a few major factors to understand about car insurance, before you buy one

Types of Insurance Plan

There are two major kinds of car insurance plans, first is a third party liability insurance plan and the second one is a comprehensive car insurance plan.

  • The third-party liability insurance- It covers only injuries caused to other people in an accident but it does not include the damage to one’s own vehicle.
  • The comprehensive car insurance- The comprehensive car insurance plan incorporates third party liability along with the personal accident or self-vehicle damage as well as theft.

Here, second choice is better as it provides you complete protection with personal accident

Mode of Purchase

The best way of buying a car insurance policy is online. It allows you to get a better deal for a similar type of plan, as compared to purchasing it offline.

If you buy the policy offline, you will have to wait for the policy document to reach at your doorstep via post. It is not the case when it is purchased online, you can easily download the policy instantly. Moreover, the possibilities of being conned by an agent are almost negligible.

Cashless Facility

Always prefer buying insurance policy from that service provider offers cashless facilities. It will save you from making several rounds of follow-ups, e-mails, and visits to the insurance company for reimbursement.

When you go for cashless insurance, you just need to visit the four-wheeler garage that the insurance company has a tie-up with. The cashless facility helps during an emergency.

Customer Support

Once you buy car insurance, the most important thing you need continuous customer service and support. Always go with the brand that offers customer service and 24X7 customer support.

Here, the best way is to check the customer support policies and know their contact points at the time of claims.

No-claim Bonus

No-claim bonus is a certain percentage; it is given as a bonus for every claim-free renewal year with a limit to the maximum bonus. One avails this while renewing the new policy by way of dedication to the total renewed premium. Always keep in mind that, used cars do not have NCB benefits because of ownership change, so insurance premium increases as the insurance company treat it as an old car.

Easy Claim Procedure

Try to find a service provider that has an easy claim settlement process. Read out the claim policy and procedures and also talk to existing users to understand their experiences, before buying a car insurance for any provider. It will help you to find a service provider where the claim procedure is easy.

Additional Facilities

Apart from the major points, it is always to look for some additional advantages. These include:

  • Zero Depreciation: Go for the company where you get assorted for the reimbursement for the four-wheeler parts replaced as per their genuine value and not the depreciated value.
  • NCB Protect: With NCB protection, you can keep the discount on account of no claims even if they have already claimed it once in that year.
  • Hydrostatic Cover: It incorporates losses due to mishaps like water logging.

Besides, many companies offer all-time road assistance, towing amenities that come in handy in case of an emergency. So check with the company before buying your car insurance.

 Mistakes to Avoid While Buying an Insurance Car

The vehicle survey inspector is like your doctor with whom you should share only the correct information. They hold the right to cross-examine and they are free to reject the claim because of misrepresentation of facts. Check the claim process of the company and their claim TATs properly.

Overall, selecting appropriate car insurance is not that tough, with a little due diligence research, it will help you get the best protection for your can within your budget.

Finally, to understand exactly the policy covers, exclusions, etc checks the Policy Wordings properly.

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