How To Choose A Right Car Insurance Policy?

Over 3 million cars are being sold in India annually and the availability of Car Insurance online and the compulsion to obtain the same has brought a plethora of options for car owners. Many insurance companies offer various options to car owners with different features available. This often renders the car owners in a confused state due to a lack of knowledge about options and features that should be included in the insurance and ones which are not needed. The confusion is with regards to pricing, features needed as well as coverage that is being offered by such insurance companies. A car owner must not solely rely on an insurance agent or information available online but must carry out their research.


Here are a few pointers that may help car owners in selecting a car insurance policy:

Excellent customer assistance 24×7:


An emergency could occur anytime and you would want to reach out to your service provider to help you out. Therefore, while comparing insurers, you could check out whether their support team is available 24×7. Better still, certain insurers could be available to support you 24x7x365.

Claim Process:


The claim process is a very important feature of a car insurance policy. A policy might have a low premium and attractive features but if the claims settlement process is long and tedious, all the benefits of a low premium will get washed away. Car owners should look for policies that provide a fast and streamlined settlement process. Ideally, with COVID-19 at large, a policy that offers a contactless and digital settlement process would best serve your purpose and allow you to settle your claim process easier.

Claim Settlement Ratio:


One of the top things that customers should check when they compare car insurance online is the claim settlement ratio of different companies. The history of the company will give an indication of the behavior and attitude of the insurance company on receipt of a claim. Consumers should prefer a company wherein the claim settlement ratio is higher. This will lessen the charges of the consumer paying for any damage from their pocket. A higher claim settlement ratio is an indication of the genuineness of the insurance company to help their clients and customers.

Add-ons:

The add-ons to any policy would increase the premium payable on such policy. Many car owners often ignore add-ons and prefer plain policy. However, such a decision would be a mistake as certain add-ons provide a lot of value as compared to the price paid for the same. Customers should opt for add-on such as Roadside assistance, zero depreciation cover as well as stores and spares depending on their usage of the car. This will ensure that the consumer pays a lower amount or negligible amount in case of any trouble with their cars.

Network of cashless garages:


The availability of a cashless facility is something that should be verified when consumers compare car insurance online. Most companies allow for cashless repairs in their network garages. The consumer should take a look at the list of network garages associated with the insurance company and the availability of such garages in their city. Such garages will ensure that the consumer won’t have to pay a single penny in case of damages to their car. In case repairs are provided in a non-network garage, the consumer will have to pay the amount initially and then put up a claim for reimbursement of the same amount.

IDV:


The insured declared value is one of the most important and yet one of the most ignored components of an insurance policy. Consumers often opt for a lowered IDV as it would decrease the overall premium payable. That, however, is a mistake, and consumers when they compare car insurance should select policies that provide a higher IDV. A policy with a higher IDV will ensure that in case of large damage to the car or car being stolen, the IDV will be considered as the total value of the car to be reimbursed. A lower IDV would result in either lower receipt of compensation from the insurance companies or shelling out large amounts for the repair of the car.

A car for most owners is a value of the family apart from being a useful mode of transport. Despite such importance of a car, hardly a small amount of time is spent deciding the insurance needed for a car. Car Insurance is an important part of your financial planning and will protect you from any unwanted mishaps. A proper selection of car insurance keeping in mind the above factors will allow you to select the best insurance policy when you compare car insurance online.

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