Anyone who owns a car knows the importance of car insurance. Your car insurance protects you from various circumstances, whether it is accidents, mechanical breakdowns or even car theft. But, finalising a car insurance policy that suits your needs can be a Herculean task. After all, the main agenda is to choose one which is light on the pocket and offers a host of benefits. So ensure you do your homework well before purchasing a policy. Here are some factors you must consider.
Comparing policies is extremely important: When you set out to buy, you are most likely to be confused since several different companies offer various options with different features. As such, you must analyse your expectations and compare various policies online. This can be done simply by creating a list of features you think are important. Then, you must check if the premium amount matches your expectations and select a policy that offers both, good benefits and costs a lower premium.
Look for additional benefits: Many insurance companies offer add-on riders, in addition to the basic insurance policy features. Different insurers provide different add-ons. For instance, some premium policies cover things like engine damage, roadside assistance cover in case of a break-down, third-party liability cover, zero-depreciation cover, and personal accident cover etc., as part of the available benefits. Others may include some or all of these features in their added benefits. While you may receive some complimentary add-on benefits, you may also have to shell out extra money to avail add-ons.
Check their customer service policy: You need an insurance company that comes to your aid when you need it the most; whether you are in an accident or need roadside assistance. When you do your policy comparison also read reviews about the insurer, their customer service policy and their turn-around time. Analyse how credible thecompany is in terms of the number of years it has been in business, its market reputation, online services and customer reviews. There is no point of buying car insurance from a company that has a bad reputation when it comes to customer service or one that puts you through innumerable IVR hurdles to reach them.
No claims bonus: This is another important factor worth considering while purchasing car insurance. In case you do not file any insurance claims in a given policy year, you are entitled to a ‘no claims bonus’. This is a reward provided to you by your insurer, when you renew your policy. Your insurer offers a discount on your annual premium for each year in which you do not file an insurance claim. Even if you decide not to renew your policy with a particular insurer and change your insurance provider, you can ask your former insurer to provide a NCB certificate. Your new insurer can take your NCB status in account and offer discount on the new premium.