Buying a car insurance plan is an excellent idea. You get many benefits under a single cover. You end up protecting your vehicle as well as your bank balance. This apart, the policy helps you stay on the right side of the law as it is a legal requirement in India to have a valid car insurance at all times. This is why you have to buy a good policy. However, there are a few things that you should know about before you buy a car insurance plan. Take a look at this article to know what they are.
Things to remember before buying car insurance
Here are the most important things that you must remember before you buy a car insurance plan:
- Comparisons are crucial: This may sound as a no-brainer, but in reality, it is absolutely crucial for you to compare the various available options before you zero in on the ideal insurance cover. Comparing the plans only takes a few minutes but you get to know the offers, the features and most importantly, the prices of all the car insurance plans. This helps you make an informed choice and you find the best plan at the best rate.
- Choose the correct cover: Car insurance covers are primarily available on two types – the third party cover and the comprehensive cover. You have to understand what each type of cover offers and then choose the right kind of cover.
- Network garages: Every insurance provider has a tie up with various garages. These are known as the network garages where you can avail cashless service for your vehicle repairs. Check the list of the network garages and ensure you have a few in your vicinity.
- Riders: Be particular about the kind of riders you choose along with the base car insurance plan. Riders are additional covers you get at an extra charge. Riders help you extend your car insurance coverage and so are very useful. Choose your riders carefully to get a more well-rounded motor insurance protection.
- Deductibles: The deductible is the amount of money that you pledge to pay at the time of a claim. If you opt for a higher deductible, your premium will be lower and vice-versa. Finalise the deductible amount cautiously as your economic profits from the policy will largely depend on this.
- Available NCB: You can carry over your accumulated NCB even if you are buying a new car insurance plan from a new insurer. The NCB, or the no claim bonus, is a discount that you earn for not making claims. The NCB plays a role in making the car insurance plan cheaper for you on renewal. So make sure you check and validate the NCB amount before you buy a car insurance policy.
- Claim procedure: The claim process must be easy and hassle free. Find out what exactly needs to be done if your vehicle needs repairs. If you feel the claim process of your insurance provider is too complicated, opt for a different insurer who has a simpler claim process.
- Claim settlement ratio: This is one of the most crucial things to check before you buy a car plan. The insurance provider must have a high and healthy claim settlement ratio. Even if you find an economical policy with an insurer who doesn’t have a good claim settlement ratio, it would be advisable not to buy the policy.
- Customer service: This is another important point to consider when buying a car insurance plan. The insurer you select must have a good customer support team. If you have any issues, you should be able to reach out to the insurer in a quick and easy manner.
- Cost of the plan: Last but not the least, you have to take the cost of the plan into consideration. Buy a car insurance cover that is wholesome yet affordable. If you buy an extremely high and fancy cover, you may soon find it difficult to pay the premiums. This may even lead to your policy lapsing. So choose a good and affordable car insurance plan at all times.
The bottom line
Keep the points mentioned above in mind and you will be able to find the most suitable plan for yourself and that too at the best rates. Shop around and spend a little time and you will know exactly which car insurance plan is best suited for you.