Buying car insurance is critical in avoiding financial crises involving your car. Thus, it is highly beneficial to research and put effort into buying the best yet affordable policy possible. To do so, follow these do’s and don’ts:
Do’s of Car Insurance
#1 Understand your requirements
The very first step while buying car insurance is to make a note of your requirements. This could begin with how often you drive your car. How many people use your vehicle? How many people travel with you? Etc. Your car’s age, location, make, and model cle will play an important role while getting your car insured. You can customize your car insurance policy based on these details.
#2 Check for NCB
The result of safe driving is that you don’t raise any claims against your insurance policy. If so, your insurer will give you a No Claim Bonus, i.e., a discount on car insurance premiums for driving safely. This bonus is cumulative and increases with every claim-free year.
#3 Buy Necessary add-ons
As mentioned earlier, the first step in buying a car insurance policy is identifying your requirements. Based on these understandings, you can select Add-on coverages that best suit your needs. Add-ons are available only with Comprehensive Car Insurance Policies. Additional covers are optional to buy and provide coverage that a basic Comprehensive car Insurance policy lacks.
#4 Renew your policy on time
To enjoy your policy’s benefits, you must be active at all times. If you do not renew the policy before or on expiry, you will not be able to file a claim if an unfortunate event occurs. Thus, the policy must be renewed on time. If you do not renew the policy in time and there is a delay of 90 days, you may lose all the accumulated No Claim Bonus.
#5 Search for the best insurer
An insurer providing prompt services, affordable and feature-rich products, and a good claim settlement ratio is one of the best car insurance policy-providing companies in India. If you are looking for good car insurance coverage, you need to make sure that you approach the best insurance company.
Don’ts of Car Insurance
#1 Don’t Buy extra add-ons
As Add-ons are to be purchased separately, they increase the cost of your car insurance policy. So, buying many of them unnecessarily burns a hole in your pocket. A thorough understanding of your requirements will help you purchase specific Add-ons which are beneficial to you. For example, buying Engine Protection Add-on would make sense if you live in a flood-prone area as floodwater might damage the car’s engine.
#2 Don’t set high IDV
IDV, i.e., Insured Declared Value, is your car’s approximate market value. This value forms the basis of an equation to deduce your car insurance premium. Setting a higher value will result in a high-cost car insurance policy. On the other hand, setting a lower amount may leave you underinsured. I.e., at the time of claim, you may receive a lower amount than expected.
Third-party Liability car insurance policy. As the name suggests, it is beneficial only when your car causes damage or injuries to a third party. Under this policy, your insurer will not bear the cost of repairing the damages caused to your vehicle. Thus, buying coverage for your vehicle is also necessary. A Comprehensive Car Insurance Policy covers third-party liabilities and own damage; you can extend the range with Add-ons.
#5 Don’t forget to understand the policy document
Once you buy a car insurance policy, do not forget to go through the policy document. Understanding the exclusions and inclusions will help during an unfortunate event.
Online Car Insurance
In India, many insurers are offering online car insurance policies. Buying the policy online is India’s most convenient way of purchasing car insurance. This way, you buy your insurance policy directly from the insurer instead of an insurance agent or personally visiting the company. Also, you can learn more about two-wheeler insurance policies online without contacting insurance agents.