Things to Keep in Mind While Buying or Renewing Your Car Insurance Policy


car insurance buying

The process of buying a car insurance policy in India has evolved to be closer at hand with time, thanks to the technology. However, there is always a thin line to watch carefully while making final calls and closing the deal. The online stance has only made it easy for people to access different insurance plans and click the suitable one to quickly jump to the procedure but all this while, there are certain checkpoints, as invisibly little as they seem, that can impact your reach to a successful insurance claim in future. Let’s cut to the chase. This article has brought you 7 things to keep in mind while buying a car insurance policy. If you are planning to fetch yourself one, then take out a few minutes to check out if you are doing it the smart way.

Important things to Consider While Buying Car Insurance

Have you decided which car insurance plan you are going to treat your car with? Great. But we say that there are certain things to keep in mind when buying car insurance. So, before you make a move to call the insurance company, here are a few parameters you should map. 

1. Pay Attention to Your Requirement

At times, everyone starts dwelling on second-thoughts on their plan to buy a car insurance plan. It is natural to be shackled by one question: Do I really need to get my car insured? And that’s okay. But you should imagine yourself in different pictures while answering this doubt. For instance, think if you need to get your car insured because the locality you live in is prone to natural calamities or the danger of theft has crossed your mind many times in the past.

Thinking of all the possible scenarios is an important thing to keep in mind while buying car insurance as it will help you make and shape your decisions. Buying a comprehensive plan is a perfect idea, but you may not find it required. The the third-party car insurance is mandatory and  you need to look after your budget too. Checking up on these points will guide you better to the conclusion. 

2. Understand Your Plan and Its Range of Cover

You are planning to buy an insurance plan not only because it is mandatory in the country but also to avoid heavy expenses that you can possibly become liable to bear in future. Thus, whatever type of policy plan you are planning to buy, it is essential to read about it and watch the range of cover it offers you the benefits by. Taking your time to look into different plans and offers will help you decide the best for yourself, suiting your preferences,  needs and budget.

3. Be Mindful of the Add-on Covers

Add-on covers come with a great opportunity to safeguard your vehicle with enhancements but do you really need that? Whenever you opt for a car insurance plan, be practical with the add-on covers you consider. While you are all good to pay extra dimes to enjoy additional benefits, it may not be necessary for you. There’s no haste. So, think and decide. 

4. Compare Quotes

Since you can seamlessly buy car insurance online, comparing plans from several insurer companies is a must. You can check the premium rates across different insurers along with the add-on covers and compare them. Apart from that, you can also compare different insurers based on online reviews and overall quotient. When you do that, make sure you are comparing the same or similar plans.

5. Claim Settlement Ratio and Reviews

It is always best to gauge the insurance company’s attitude which includes their ability to proceed and settle the insurance claim. You can inculcate that by catching up with the Claim Settlement Ratio of insurance companies that is published by the Insurance Regulatory and Development Authority of India on their website. In this data, you can view the ratio of number of claims raised along with the number of claims settled. This ratio opens the door for you to reflect on your scope. 

But this is not it. Note that the number of claims are rejected or impacted in any way due to several reasons from the policyholders’ side which includes fraudulent practices. Thus, you should not make decisions based solely on this ratio and pay attention to the online reviews written by customers and different testimonials about the insurer. You can also seek reviews and suggestions from your peer on the insurance company.

6. Give a Moment to the Policy Brochure

Let’s be honest, going through that how-many-pages long policy terminology is a job most of us (or everyone) find tedious. Ever since the online fashion of commencing such procedure has started, everything has become simplified and a lot more accessible. However, here is a healthy reminder: Read the contract terms carefully before buying a policy. By going through the detailed version of terms and conditions, you will minimize the chances ending up on some shocker in future.

7. Discounts

We all love discounts and when it comes to getting the same benefits or more at a lesser price, you better not skip the chance. It is yet another important thing to keep in mind while buying car insurance. Discounts are only offered on own-damage cover and comprehensive plans, given that these plans are decided and updated by the insurer unlike third-party plans that are standardized  by The Insurance Regulatory and Development Authority of India. Be watchful, you may stand a chance.

Final Thoughts 

Now that you know the important things that you should keep in mind before buying car insurance, you should be able to be more calculative with the conclusion. In the haste of fulfilling the responsibility of being a citizen and protecting your beloved car, it is not surprising to skip a must-to or two. Hopefully these tips have reminded you what you have been missing all this time. Did it help? Share your views and suggestions with us by dropping the words in the comment section below.