Car insurance is a must-have for anyone who owns a car. It offers financial protection to the car owner in the event of an accident, theft, or any other damage to the car. However, with multiple insurance options available in the market, choosing the right one can be a daunting task. In this article, we discuss key factors to keep in mind while buying car insurance.
Before buying or renewing a car insurance policy for your car, you can check your existing car insurance status online on the Parivahan Sewa website. The Parivahan Sewa portal also lets you check the other aspects of your vehicle, such as engine and chassis number, which might come in handy while trying to get quotes from various insurers.
First and foremost, it is crucial to understand the types of car insurance policies available in the market. There are primarily two types of policies – third-party liability and comprehensive. Third-party liability insurance is mandatory in India and covers damages caused to a third party by the insured vehicle. It covers injuries, death, and property damage caused to the third party. On the other hand, a comprehensive policy offers coverage for third-party liability as well as damage to the insured vehicle. It includes damages caused by natural calamities, theft, fire accidents, and other such incidents.
While buying car insurance, it is essential to keep in mind the coverage offered by the policy. It is advisable to opt for a comprehensive policy that offers extensive coverage, including personal accident coverage for the driver and passengers, roadside assistance, and engine protection. Some insurance providers also offer add-on covers such as zero depreciation, return to invoice, and no claim bonus protection. These add-ons enhance the coverage of the policy and provide additional financial security.
The premium of the car insurance policy is another vital factor to keep in mind. The premium is the amount paid by the policyholder to the insurance provider for availing of the coverage. The premium amount is determined by various factors such as the value of the car, its age, make and model, the location where it is registered, and the driving history of the policyholder. It is advisable to compare premiums offered by different insurers before finalizing a policy. One can also use online premium calculators available on websites such as the Bajaj Finance Insurance Mall to compare premiums and select the best one that suits their budget and requirements.
Third-party reviews and ratings of the insurance provider is also essential while selecting the right car insurance policy. It helps to get an idea of the quality of service offered by the insurer and their claim settlement ratio. A higher claim settlement ratio indicates that the insurance provider settles claims promptly and efficiently. One can also check for reviews and ratings of the insurance provider on third-party websites and forums.
The claim process of the insurer should also be considered while selecting the right car insurance policy. One must ensure that the process of initiating and settling the claim is hassle-free and straightforward. The insurer should have a quick and efficient process of settling claims. The policyholder should be able to file a claim easily, either online or through a toll-free number. It is also advisable to understand the documents required for the claim process and keep them ready.
Another factor to keep in mind while buying car insurance is the No Claim Bonus (NCB). NCB is the discount offered on the premium for not making any claims during a policy year. It is one of the most significant factors while renewing the policy. NCB can range from 20% to 50%, depending upon the number of claim-free years. It is crucial to understand the NCB benefits offered by different insurers before selecting a policy.
In Conclusion
Buying car insurance requires careful consideration and research. When selecting the right policy, the coverage offered, premium, third-party reviews, claim process, and NCB benefits should be kept in mind. It is essential to compare policies offered by different insurers and select the one that meets your budget and requirements. With the help of online premium calculators and third-party reviews, buying the right car insurance policy has become easier than ever.
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