5 Tips To Purchase A Good Car Insurance Policy
5 Tips To Purchase A Good Car Insurance Policy
Table of Contents
The first and the foremost step after purchasing a vehicle is to get it secured from any unforeseen event such as natural calamities, theft, accidents, self ignition, strikes or riots etc. One must be aware that it is punishable by the law to drive an uninsured vehicle. A valid Motor insurance is mandatory for all the vehicles according to The Motor Vehicles Act, 1988. Hence, making one required to buy a valid motor insurance.
Before investing in an insurance policy it is crucial that one must be aware about them to make rational and diligent decisions, and also be aware about the coverage that different insurance offers.
In this article we will read about the Tips To Purchase A Good Car Insurance Policy!
How To Choose a Good Car Insurance Policy?
Here are tips to choose the right Car Insurance Policies. This will provide one to choose the insurance with more coverage diligently.
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Selecting the perfect Car Insurance Plan
In order to purchase the perfect plan for an individual, one must see how crucial it is to find the plan that goes hand in hand with the individual’s needs. The two major Car Insurance offered in the market are: Third Party Damage Insurance and Comprehensive Car Insurance.
The Third Party Damage Insurance provides damage cover to the third party involved, the liabilities like death, injury, property damage etc. are covered in this by taking care of their damage expenses which includes medical costs, repairing cost and property damage. It is mandatory in India to buy Third party liability insurance, not doing so is punishable by the law according to The Motor Vehicles Act, 1988.
Comprehensive Car Insurance is the protection against accidental damage due to various unforeseen events such as natural calamities, theft, accidents, self ignition, strikes or riots etc. It is mandatory to own a Comprehensive car insurance under the same act, it covers a lot of damage. Although it might be expensive than the former but provides various other benefits like it provides more coverage as compared to Third Party Car Insurance, as it coves the damages make to the vehicle of the policy holder too.
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No Claim Bonus (NCB)
The people who do not obtain any insurance claim for a given term are provided with this discount or reward. The advantage one can get is that this brings down one’s insurance premiums. This might be of advantage during renewal of car insurance. One can transfer their NCB from one insurer to another and enjoy their benefits.
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Opting for Additional Covers
Going for policies with higher coverage is wiser and diligent than the basic one. One must choose from varieties of add ons for enhanced coverage. Some of These are :
No Claim Bonus:
The people who do not obtain any insurance claim for a given term are provided with this discount. The advantage one can get is that this brings down one’s insurance premiums.
Zero Depreciation Cover:
It provides coverage for depreciation over the car as well as its parts over many years. In order to purchase a zero depreciation add on, one must pay some extra premium in addition to the price of car insurance.
Roadside Assistance:
In case one’s car is facing some difficulty or is broken down, the Road Side Assistance offers mechanical and electrical services in case of emergency.
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Determining Settlement Ratio for Claims (CSR)
It refers to the claims successfully resolved by a car insurance company in a policy year. One must go for an insurance company with higher CSR, as this ensures security towards claims. The higher the ratio the more claims settled.
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Determining Premium Rate
Analyzing the premium before buying a policy is a necessity as purchasing an insurance policy might raise cost issues. But this doesn’t mean one must go for a policy with low premium rate as it might look cost effective in the short run but in the long run it might provide lesser benefits.
Conclusion
One must be fully informed about the Car Insurance Policies before buying one. This might help an individual to make informed and diligent choices and go for the policy with maximum benefits like high coverage.
Also read: The Basics of IDV in Car Insurance
