In the market, there exists a vast range of car insurance policies, numbering in the thousands, which can make selecting the most suitable one for your car challenging. However, in compliance with the Motor Vehicles Act 1988, it is mandatory to possess a third-party liability car insurance policy to operate any car in India.
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How to Choose Right Car Insurance
Multiple companies provide their insurance policies at varying prices. Below are some pointers to help you choose the appropriate insurance policy for your vehicle:
Understand your requirement
Assessing your needs is crucial. In India, two types of insurance policies exist – third-party policies and comprehensive insurance plans. It is recommended that you familiarize yourself with these plans. By law, third-party insurance is mandatory, covering damages solely related to the third party, and damages incurred by the other party.
Also Read: How to find the Best Car Insurance policy in Australia
On the other hand, comprehensive policies offer coverage for both third-party liability and damage to your own vehicle. Additionally, a comprehensive insurance policy should account for all losses in the event that your car is stolen.
Search and compare different plans
Upon selecting the desired plan, it is advised to compare multiple policies. Doing so will help streamline your search.
Ask for add-ons
Add-ons refer to additional coverage elements that can be acquired by paying an extra premium on top of the quoted amount. They are exclusively available in comprehensive insurance policies.
Learn how to claim
Understanding the process of claiming insurance is of utmost importance. Thus, it is critical to have a comprehensive understanding of the claims process before purchasing an insurance policy.
Check claim settlement ratio (CSR)
Prior to purchasing an insurance policy, it is recommended to check the insurer’s claim settlement ratio. This ratio reflects the number of claims that the company has settled in a year against the number of claims received.
Do not provide wrong information
In the event that an insurance company discovers incorrect information provided, it reserves the right to immediately terminate the insurance policy. Therefore, it is always essential to provide accurate information.
Read the terms and conditions carefully
It is crucial to allocate sufficient time to thoroughly read and comprehend the terms and conditions prior to signing up for an insurance policy. Understanding each clause and condition is necessary.
Be careful of No-Claim Bonus
If a policyholder did not file any claims during the previous year, the insurance company offers a discount on premium payment called No Claim Bonus or NCB. This bonus can be viewed as a reward given by insurance companies to policyholders for vehicle usage. It is advisable to check your NCB if no claims were made.