As per the Motor Vehicles Act, getting a car insurance policy is compulsory for any car owner in India. However, simply because you need insurance does not mean that you take the first policy offer you come across. In order to get the best deal out of an insurance policy, you need to know the ways to find the right plan. On that note, here’s showing you how to figure out the right policy for your car.
#1 Assess your insurance needs
The first thing you need to figure out is the type of car insurance policy you want to get. Overall, you have two options in the matter, and they are –
Third-party policies: Getting a third-party policy is mandatory by law. However, it only covers any damage done to the third party and not your car.
Comprehensive policies: It covers both the damages done to a third party and your car.
Thus, if you have a really expensive luxury car, then it is always better to go for a comprehensive policy.
#2 Consider the add-ons you need
If you take a comprehensive car insurance plan, then you get to choose from a number of add-ons. It is important to ask your insurer about the kind of add-ons they offer and how that increases your premium. Keep in mind that you should only get the add-ons you need. After all, the more add-ons you have, the higher your premium goes.
#3 Compare the available policies
There are various car insurance companies that offer different benefits and offers. So, it would be wise to take a look at a couple of policies instead of choosing the first one you come across. Apart from comparing the policies regarding the features, premiums, and so on, also compare the companies. What is the market reputation of the company? How fast are they in terms of claim settlement?
#4 Claim settlement ratio and process
Claim settlement ratio refers to the number of claims settled by an insurer in a year against the number of claims they received. It is an indication of how fast or reliable an insurer is. So, before you proceed further and choose an insurer, make sure to go for a company that has a high claim settlement ratio.
Also, consider how complicated or easy the settlement process is. The last thing you would want is to go through a long and complex procedure when you are already dealing with injuries or serious damages to your favorite car.
#5 Read the terms and conditions
Many people make the mistake of never going through the terms and conditions once they understand the basic structure or features of a policy. However, there can be things mentioned in the terms and conditions that can land you in trouble later.
That’s all! You are now better informed about the finer details of getting a car insurance plan that suits you. So, keep these points in mind and start looking at the available policies right away.