Cars have become an essential means of transportation in many suburban areas as well as in metro cities. People spend considerable time weighing pros and cons of different cars before making their choice. Nevertheless, not all people purchasing a new car invest an equal amount of time in researching car insurance policies. The Indian government has been made car insurance with third-party coverage mandatory for all car owners.

Due to lack of awareness or some other reasons, many people often ponder the question ‘how to choose car insurance policy’? A car insurance policy deserves an equally detailed research as a car before you select a plan. You can explore some tips for selecting the right car insurance policy for you here.

Key Factors to Evaluate When Selecting the Right Car Insurance Plan

The process of selecting car insurance can prove to be overwhelming. Moreover, the answer to the question ‘how to choose best car insurance policy’ cannot be summarised in a single sentence. To choose the best car insurance, you may have to undertake extensive research to find the right plan for you. You can consider the factors presented here for your research.

When you decide to buy a car insurance plan, you may be faced with a wide range of selection available in the market. The availability of such a wide range may even lead you to puzzlement rather than making your selection process easy. Nevertheless, you can come over this confusion simply by comparing the different car insurance options available in the market against each other. By undertaking comparison of various policies available, you can ensure that you make an informed decision and get the best plan for yourself.

An insurance provider may not be able to offer a single plan that is suitable for all car insurance seekers with different requirements. You can look for a plan that provides flexible coverage, i.e., a policy that ensures you can be covered against various events in the future, such as damage to your car and/or damage to a third-party vehicle. Thus, you must find a plan that best caters to your needs.

Many insurance companies provide their customers with no-claim bonus for every year the customer does not raise a claim. You can consider this policy feature and select a plan that offers you the maximum bonus for the year you don’t raise any claim.

Looking into the customer support provided by an insurance company is crucial before buying a car insurance. Some insurance companies offer 24×7 assistance to their policyholders, which can come in handy if you require assistance raising a claim or settle a grievance.

One of the reasons the selection process for car insurance requires substantial time is the variety of protection offered by different insurance plans. Different plan can provide your coverage for different events, such as car theft, accidents, and third-party damages. Some plans may not cover the costs incurred in all these situation at once. Hence, you must select a plan that allows you to add riders depending on your requirements.

Each insurance provider receives numerous claim requests throughout a year; however, some of these claims may not be approved due to various reasons. You must consider the claim settlement ratio of an insurance company before purchasing a car insurance policy from them. You can opt for a company with highest claim settlement ratio for car insurance to ensured maximum chance of your claim request getting approved.

When purchasing a car insurance policy, you must look at the renewability feature of the insurance plan. You can opt for a plan that allows you to renew your policy on a yearly basis in a hassle-free manner.

A car insurance policy providers you with numerous benefits such as coverage against various eventualities depending on the terms and conditions of your insurance policy document. It safeguards your finances in unforeseen situations such as your car being stolen and an accident. In addition to this, car insurance also provides the coverage for the expenses incurred due to third-party damage.

Thus, you must secure your finances by investing in the right car insurance plan for you. While choosing the right plan, you can consider the rate of premiums, along with benefits and coverage offered by the policy. The premium rate for car insurance can vary depending on the plan that you want and additional riders that you choose to include in your policy. You can also estimate the premium amount you may have to pay for your car insurance with the help of car insurance premium calculator.

FAQs

To choose a car insurance policy, you must undertake detailed research and compared the various options available in the market. Doing so can ensure that you get the best coverage at a nominal premium that you wish to pay for the plan.

You can look at the different cover options and benefits provided by a car insurance policy. These options and benefits may include accident cover, third-party coverage, flexibility to add riders, and renewal features. You can select a plan that is best for you by considering these factors.

In case of a car accident, car theft, and/or damage to the car due to some other reason, your car insurance helps you by paying for the cost incurred due to the specified events. It also provides cover against in other situations.

Third-party coverage is considered the most important aspect of car insurance. The government of India has made it mandatory for every vehicle holder to have a third-party insurance.

Some insurance providers may offer you a discount on the premiums of your car insurance policy. In addition, many insurance companies provide benefits such as no-claim bonus which can be deducted from your premium amount.