Most car owners make one common mistake when they choose a Car Insurance provider. They skip the research. Many consider only one factor before selecting a policy – the cost of the premium. Here we’ll give you a step-by-step guide, which will help you make an informed choice.
These are seven simple steps you should follow when you decide which Car Insurance policy to zero in on.
Make a complete comparison of the features of the Insurance coverage
Compare all you short-listed Car Insurance policies and see if they all provide the same type of insurance coverage. Some key inclusions in the cover should be coverage for damage to your car, personal accident cover for the insured person and for injuries to third parties.
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Review Additional Riders Offered As A Part Of The Insurance Policy
Consider all the important Insurance riders and choose those that you think would be suitable. We’ve listed some important Car Insurance riders for you.
- Engine Coverage
This protects you from incurring costs due to any damage to your car’s engine.
- Third Party Liability
Third Party Liability cover protects the owner of the vehicle against financial liabilities that may arise as a result of physical injury, death or damage to the vehicle of a third party.
- Roadside Assistance
In the event you are stranded after a car accident or with a flat tyre, Roadside Assistance will give you the option to call your insurance provider and request them to send a mechanic.
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- Zero Depreciation
If you choose to take Zero Depreciation cover with your Car Insurance policy, your Insurance provider will waive off depreciation on replaced vehicle parts. This means that you get a higher claim amount.
- Personal Accident Cover
This cover financially protects you, as a vehicle owner, against unfortunate events that may cause physical harm like accidental death or permanent total disability in a road accident.
Additional Reading: All About Zero Depreciation Cover
Get Hands-On Reviews of Car Insurance Providers
Ask your family or friends about their experience with a particular Car Insurance provider. This will give you a good idea of how their customer service and claims process works, which in turn will help you make the right choice.
Additional Reading: What To Consider When Choosing A Car Insurance Policy
Compare Premium Quotes Online
You may get a really good deal online if you take some time to browse around a bit. When you compare Car Insurance policies online, here’s what you must do.
- Compare policies from different insurers.
- Make sure every comparison site calculates the Insurance premium on the same Insured Declared Value (IDV).
- Check at least 3 Insurance comparison sites.
Additional Reading: Your Guide To A Car Insurance Premium Calculator
- Negotiate With Your Existing Insurer
You might get an extra benefit for being a safe and responsible driver as you may not have made too many claims or frequent accident-related repairs.
- Protect Your No Claim Bonus
Being a responsible driver has its perks. If you don’t make an Insurance claim for an entire year, your Car Insurance provider will reward you with a No Claim Bonus. This is a discount on your Insurance premium. You can also choose to opt for No Claim Bonus protection. This means you won’t lose your No Claim Bonus cover if you file a claim, provided the other party confirms that the accident was not your fault.
Additional Reading: All About No Claim Bonus In Motor Insurance
- Check Claim Settlement Ratio
Before you finally choose a Car Insurance provider, the last factor you must take into consideration is the Insurance provider’s Claim Settlement Ratio. A Claim Settlement Ratio is the amount of time they take to wrap up a claim for their customers. If it’s good, go ahead and purchase your Car Insurance policy. You can check the Claim Settlement Ratio on the IRDAI website.
Additional Reading: What Is Claim-Settlement Ratio
It is always good to look beyond just the Car Insurance premium when selecting the perfect Car Insurance for your vehicle. Now you know what to look out for.