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What To Know When Purchasing Car Insurance?

Wish

Written by Sharad Bajaj

Updated Oct 15, 2023

Need to buy car insurance but don’t know what to look for? Read this article, to clear all your doubts.

Owning a car nowadays is more of a need than a want. However, buying a car for the first time brings a lot of confusion. It needs proper research to be done in relation to the budget, technical aspects, brand reputation and many other things. Buying a car insurance policy is one such decision where one needs to be careful.

What To Know When Purchasing Car Insurance?

In India, it is mandatory to have at least a third party insurance policy, which protects you against third party liabilities which may arise due to an accident or any other road accident involving your car. Besides the third-party car insurance policy, there are two more types of car insurance policies namely comprehensive car insurance policy and standalone own-damage car insurance policy. While the comprehensive car insurance policy covers all types of damages including third-party losses and own damage, the standalone OD policy covers only damages incurred by the insured’s car.

People often get confused about the factors which they should consider while choosing a car insurance plan. This article will give them a clear idea of the aspects they should keep in mind to buy a suitable insurance plan for their car.

DOs

DON’Ts

Compare multiple plans before buying one

Evaluate several choices. If you’re bonded with the same insurance company for years, chances are, you will end up paying the same premium amount every year while the advantages would keep depreciating.

Don’t fall in car dealer’s trap

It is not mandatory to buy a car insurance plan from a car dealer. Usually, car dealers try to push an insurance plan for which customers might have to pay a higher premium. So, it is always advised to research available car insurance plans before going to buy a car.

Fill proposal form yourself

You should always fill up the proposal form yourself. At the same time, it is also advised to check the form thoroughly, carefully and factually.

Don’t let anyone else fill your proposal form

You should not let other people fill your car insurance plan proposal form. Unbeknownst, it could lead you to confusion in future.

Read the policy brochure carefully

Before filling up a proposal form, customers should read the policy brochure carefully and thoroughly. If there is something unknown, they should research and gather knowledge about the terms before filling up the proposal form.

Don’t leave any column blank

While filling up the proposal form, do not leave any column blank. If a question doesn’t apply, write “N/A” or “Not Applicable” in the column. It explains you have read out the full form.

Always ask about add-ons

While buying a car insurance plan, always ask about the add-ons and choose the suitable ones. Also, you should compare several quotes to know the different types of add-ons and figure out what is required.

Don’t be in dark

Don’t forget to ask what your insurance plan covers. Make sure you know how your car will be insured before confirming the proposal form.

Keep a copy of proposal form

You should keep a copy of the completed proposal form for your records.

Don’t make any false declaration

Customers shouldn’t make any false declaration about the actual use of the vehicle they are insuring. If they’re caught up in falsehood, they might face hefty fines, cancellation of plan, and more.

An accident can result in the loss of property and life. Having a car insurance plan at least covers you against the financial side of it. This checklist of Dos and Don’ts is generic but it should not be ignored. Ignorance may lead to higher premium cost and lesser coverage.

What to Look For When Purchasing A Car Insurance Policy?

The following are some pointers that will help you make the right choice when selecting a car insurance policy for yourself:

  • Insurance Provider’s Reputation: There is a wealth of material online that will help you understand your insurance providers reputation. Another marker that help you understand this is their claim settlement ratio.
  • Customer Care Reviews: When you make a claim you will primarily be interacting with their customer service/ helpline. Check to ensure that the review about the service is good as inefficient customer service and delays and claim process can be extremely frustrating especially in times of crisis.
  • Insured Declared Value: The IDV is the maximum compensation that your insurance provider will give you in case of a mishap. It is a good marker to understand the coverage the policy will provide you and will help you select a good deal.
  • Network Garages: Or cashless garages have tie-ups with insurance providers and can settle the cost of repairs with them directly meaning you will have no out of pocket costs in such cases. Ensure the insurance company you pick has a large and efficient network of such garages.
  • Purchase Online: The best way to purchase insurance is to do it online. You can compare the different car insurance companies, check the quotes they offer and their network of cashless garages with a few clicks.

For further reading:

5 Dos & Don’ts of Filing Car Insurance Claims

Disclaimer: This article is issued in general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

Wish

Written by Sharad Bajaj

Sharad is an insurance industry veteran who has managed motor insurance products for over a decade. Read More

Disclaimer

This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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