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Important Things to Consider When Buying Car Insurance

By Finserv MARKETS - Feb 11,2019
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Buying a Car Insurance: Important Things to Consider

Car Insurance Buying Tips

Car Insurance is not something you can buy in a hurry, it is something that needs due diligence and adequate research. Thanks to the availability of online insurance, comparing and buying a car insurance policy has become a quick and hassle-free process.

If you are planning to buy a car insurance policy, here are some important things to consider before making the final purchase: –

Important Car Insurance Concepts

1. Policy terms

Before buying a car insurance, it is very important to understand the various inclusions and exclusions of the policy. Inclusions entail what the policy covers, while exclusions are the factors that the policy does not cover. Most buyers pay due attention to the policy inclusions, but forget to read the conditions that the policy does not cover. Hence, it is important to understand both inclusions as well as exclusions, in order to make an informed decision.

2. Insured Declared Value (IDV)

The Insured Declared Value (IDV) is the maximum amount you can claim in case your car is damaged beyond repair or is stolen. The car insurance premium is calculated based on factors like the IDV, car model, etc. So, understanding the IDV of a car is important. In other words, IDV is the current market value of the vehicle. Your car’s IDV is one of the most important factors that affect your car insurance premium.

3. Voluntary Deductibles

Voluntary Deductible is the portion of the claim amount which is borne by the insured. Hence, you agree to share costs with the insurance company. Opting for a voluntary deductible can be a good option as it will reduce your car insurance premium. However, if you live in an accident-prone area, or are just learning to drive your car, this option may not be feasible.

4. No Claim Bonus or NCB

The No Claim Bonus is a bonus which is provided by the insurance company when you do not make any claims for an entire policy year. Hence, at the time of policy renewal, the NCB needs to be accurately calculated and carried forward. You can accumulate your NCB up to a maximum of 50% after 5 consecutive claim free years.

5. Claim Settlement Ratio

The claim settlement ratio denotes the ratio of the claims honoured by an insurance company. A high claim settlement ratio indicates that the company honours the majority of the insurance claim. However, having a low claim settlement ratio can be a big red flag. Hence it’s very important to check an insurance company’s claim settlement ratio as it indicates the reliability of an insurance company.

6. Claim Procedure

The ease and efficiency of the claim procedure are one of the most important aspects of a good insurance policy. When you buy a car insurance policy, ask your insurer about the claim procedure and availability of 24×7 assistance. Efficient claims services will help you file a claim seamlessly.

With Finserv MARKETS, buying car insurance online is a simple, easy, convenient and hassle-free process. So why wait? Get your car insured with us, today! You can also check the premiums for car insurance plans available on Finserv MARKETS by using the car insurance calculator. The tool not only provides a quote but also allows you to compare quotes offered by insurers in India. Based on the results, you can then choose a car insurance plan that is affordable and fulfils your needs.

To know more on car insurance in depth, you can check out these blogs:

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522