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How to Pick a Car Insurance

By Chanel Rick - Dec 5,2022
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The feeling of taking a joyride in your car, or even a cab, could be therapeutic. Planning a spontaneous weekend road trip or simply driving around the city is nothing short of exciting. But the thrill of owning a car comes with certain responsibilities. This might feel like a bit of a killjoy, but laws and regulations have been set in place to ensure the safety of pedestrians and motorists. 

In India, the Motor Vehicle Act of 1988 requires all four-wheeler drivers to purchase third-party legal liability insurance. In case of an accident, this policy will ensure that any damage or injuries caused to third parties is covered. After spending a considerable amount on car loan EMIs, this might seem like an additional expense. However, buying car insurance is crucial to avoid any run-ins with local enforcement or incurring accident-related expenses. But how to pick the right one?

Car Insurance: Types & Benefits  

There are two primary types of insurance – comprehensive and third-party. However, certain insurers may offer other plans that you can choose from based on your requirements.  

1. Comprehensive Car Insurance:

It’s a mix of ‘own damage car insurance’ and third-party policies. The own damage cover insures your vehicle against damage, loss, fire, floods, vandalism and more.

2. Third-Party Insurance:

As a policy, it protects you from any legal liability in event of injury or death of the third party. This includes property damage caused by your insured vehicle.

 Aside from offering protection, these plans have numerous other features and benefits. These advantages could round off the next premium with a discount or provide accident covers that prevent any financial drain caused by unforeseeable events.

How to Pick a Policy 

With these appealing features and benefits covered, let’s move on to how to choose the best car insurance for yourself. The following guidelines and tips will help you choose a policy that best suits your needs without any grievances:  

1. Compare Different Policies 

While browsing through different insurers, the astonishing number of policies might overwhelm you. To avoid panicked decisions, calmly select insurance plans that best suit your requirements and compare them. Assess the coverage amount provided and the estimated premium to understand which insurance offers the most for its value. 

2. Consider Choosing Add-ons

Along with the benefits and features a policy already provides, consider additional riders, or add-ons to enhance its coverage. These include zero depreciation covers, engine covers, personal accident plans, etc. Remember that these add-ons will result in a higher premium, and their costs vary across insurers. However, they only serve to offer you more benefits and protection.  

3. Check the Claim Settlement Ratio (CSR)

Most people believe that insurers rarely settle claims made by customers. Though that’s far from true, it is always better to be safe than sorry. There’s a way to avoid purchasing policies from providers with poor settlement reviews. Examine the company’s previous claim settlement records and their application process. 

The CSR of these firms is available on the official website of the Insurance Regulatory and Development Authority of India (IRDAI).  

4. Opt for Flexible Coverage 

When selecting car insurance, it’s best to consider choosing one that offers flexible coverage over a ‘one-size-fits-all’ policy. Insurers open to customising their plans to your needs are a positive sign.  

5. Understand the Policy’s Cost Effectiveness

Purchasing low-premium policies come with catches like limited coverage. It’s best advised to carefully compare plans and settle on one that offers the most benefits and features at a reasonable rate. Moreover, analyse your present situation and requirements before making any transactions. 

The following benefits might motivate you to purchase a car insurance right away!  

  • Personal Accident Cover 

For a pre-determined amount, it will secure you in case of death or permanent total disability. It also allows you to insure other passengers, as per the vehicle’s maximum seating capacity, for a price.  

  • Cashless Network Garages 

Based on the selected insurance provider, you could get access to an extensive network of cashless garages pan India. Without paying extra, avail of repair services for any damages to your vehicle at these locations.   

  • No-Claim Bonus (NCB)

In return for every claim-free year, insurers will reward you with an NCB. At the time of insurance renewal, your accumulated NCBs can be used as a discount to lower the cost of the premium. This is potentially the most attractive quality of car insurance for customers. 

 

Ultimately, being too financially prudent and just purchasing a simple third-party cover to comply with the norms isn’t enough. While it helps you avoid unpleasant encounters with the law, it barely protects your vehicle. So, what’s the delay? If you plan on purchasing a car or your insurance is about to expire, visit Bajaj Markets now. You can choose from a host of insurance providers that offer great benefits!

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Bajaj Finserv Direct Limited ("BFDL") is primarily engaged in distribution of financial products and services through its digital platform (“Bajaj Finserv MARKETS”) and inter alia renders services of customer acquisition, providing preliminary credit support activities, fulfilment services and post-acquisition customer services to Banks, NBFCs, HFCs. BFDL is also a registered Corporate Agent (Composite) under valid IRDAI registration number: CA0551 valid till 10-Apr-2024 for solicitation and servicing of Insurance Products. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522