There are countless variations of car insurance policies on the market. The best insurance policy for your car can take time to choose. To operate any vehicle in India, you must have third-party liability auto insurance, per the Motor Vehicles Act of 1988. The costs of various companies’ insurance policies vary. Here are some suggestions for picking the right auto insurance coverage:
Understanding your needs
It’s crucial to evaluate your needs for yourself. Third-party and comprehensive insurance plans are the two insurance policies available in India. Discover the plans. Insurance for third parties is required by law. Damages that are only related to the third party are covered. It pays for the harm suffered by the other party. At the same time, the comprehensive policy covers damage to one’s vehicle and third-party liability. A comprehensive insurance policy should also pay for all losses if a car is stolen.*
Look up and contrast various plans
Always compare different car insurance policies after deciding on the type of plan. It will assist in focusing the search.
Ask for add-ons
Add-ons are the extra coverage components that can be purchased by paying a higher premium than what was initially quoted. Only comprehensive insurance policy plans have it available.
Find out how to file a claim
Understanding how to file an insurance claim is essential. Therefore, before purchasing an insurance policy, it is vital to have a complete understanding of the claims process.
Check the CSR (claim settlement ratio)*
Before purchasing a policy, always check the insurer’s claim settlement ratio. This ratio shows the number of claims the company has resolved compared to the total number of claims it has received in a given year.*
Don’t give false information
The insurance company may immediately cancel the insurance policy if it discovers the information provided is inaccurate. Therefore, always give accurate information even if it means your car insurance prices are higher than what you had expected.
Carefully review the terms and conditions
Before purchasing the policy, take the time to read the terms and conditions carefully. Every clause and condition for the same must be understood. It will be crucial when you have to make a claim.
The plan may promise some benefit, but the fine print may render it useless. For example, you might get engine protection coverage as part of your comprehensive insurance. When the engine gets damaged, you foot the repairs and go to file a claim. But the fine print limits the expenses to a small amount, and you are left footing the bill.
Watch out for No-Claim Bonuses*
No Claim Bonus, or NCB, is a concession premium payment given by the insurance company if the policyholder did not file any claims the previous year. This bonus may be considered a payment made by the insurance companies to the policyholder in appreciation for using the car. If you did not submit any claims, you must look for your NCB. This feature is valid for both third-party and comprehensive car insurance.*
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* Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.