Guide To Finding The Right Car Insurance
Having a car of your own is much more convenient than relying on public transport or hailing private cabs for everyday travel. However, you ought to have car insurance for your car before you can drive it on the road. The Motor Vehicles Act of 1988 makes it mandatory for car owners in India to purchase a car insurance policy for their cars.
Owning a car insurance policy can have various advantages for you, such as -
- Provision of personal accident cover–A car insurance policy covers the policyholder against expenditures related to bodily injuries, deformity, loss of limb or disablement and death due to car accidents.
- Reduction of third-party liability – It protects you against claims of damage or loss of property, injury or death due to accident, made by a third party.
- Coverage of your Vehicle Against Damage Or Loss–Damage or loss to your bike occurring due to natural calamities (flood, hurricane, avalanche, earthquake, etc.), theft, vandalism, road rage, crash or collision will also be covered by your car insurance policy.
Now based on coverage, car insurance plans are of two types –
- Third Party Liability – Also known as an act-only or liability-only policy, such a car insurance policy offers protection against basic third party liabilities to the policyholder.
- Comprehensive Cover – A comprehensive car insurance policy is a financial product with an expansive range of coverage, often involving own damage, damage or loss to vehicle, and third party liability cover as well.
With the multitude of car insurance plans coming up, making a choice has become all the more difficult.
So, how do you find the right car insurance cover for yourself?
Tips to finding the Right Car insurance
- Understand your Needs– The first step to finding the right car insurance cover involves knowing what your needs are. To do that, keep in consideration the type of vehicle you own, how you use it, and so on, and set aside a budget based on the online car insurance quotes you take.
If you have a good financial status, you can always opt for a comprehensive car insurance policy. This is also a good choice when you have an expensive car, repairing or replacing which could be difficult for you. In fact, it is ideal to have a comprehensive cover even when you don’t drive your car much.
- Compare Policy Online– With the numerous car insurance plans out there, finding the perfect motor vehicle insurance that has the right coverage for you and even falls right in your budget, can get difficult unless you opt for policy comparison online. There is a host of options to compare car insurance plans online, and it is something that you must do before buying.
That way, you not only get to assess the coverage available but also tally the premium amount for each plan.
- Check the Insurer’s Background– To get the best benefits out of your car insurance plan, you also need to focus on the insurance provider that you are buying your car insurance policy from. You must ensure that the company has a market presence and also a good reputation. For that matter, you can check out their website and reviews about their products and services online. Find out what their claim processes are and what their claim settlement ratio is. Also, try to find out if the company offers online policy purchase and renewal services.
Apart from the above, going through the car insurance policy documentations in details and considering additional covers such as the zero depreciation cover, can all go a long way in making your car insurance policy as comprehensive as possible, and ensure the most extensive level of coverage.
**To understand exactly about the policy coverage, exclusions etc read the Policy Wordings carefully.**