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: –
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.
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.
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.
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.
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.
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!
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