Finding an appropriate car insurance policy can be an overwhelming task. Hence, most people skip the researching stage and opt for a policy that they either come across first or the one offered by their auto dealer.
However, if you have just purchased a new car, then make sure that you are safeguarding it with an insurance policy. As a matter of fact, it is mandatory for every vehicle running on the Indian roads to have motor insurance under the Motor Vehicles Act, 1988.
A car insurance plan will financially protect your vehicle against road accidents, theft, and loss incurred due to human-made or natural disasters. Therefore, when purchasing insurance online, you must choose a policy that not only fulfils your needs but is available at an affordable premium rate.
Let this article be your go-to car insurance guide when planning to purchase a car policy in India.
Key Factors to Consider When Choosing Car Insurance in India
When you buy insurance online, make sure that you are considering the following key factors-
1. Compare the Policy Features Online
After you have shortlisted the policies, make sure that you compare them online. This will allow you to understand each policy features and coverage in-detail. Further, it will help you make a wise decision that is most suitable for you.
2. Review Add-On Riders
When buying insurance, it is essential that pay equal attention to the add-on riders and their benefits. This way, you can choose only those riders over your underlying policy that fulfils your requirements. Some add-on riders that you need to take into consideration are as follows –
Third-Party Liability Cover
Roadside Assistance Cover
Zero Depreciation Cover
Personal Accidental Cover
3. Choose Appropriate Car Insurance Provider
Not just an appropriate policy, you must purchase a policy from a reputed and well-trusted insurance provider. Check online reviews of different insurance providers and the type of coverage they provider before making any decision.
Factors That May Affect Your Car Insurance Premiums
Different insurance providers offer various insurance premium rate. The premium rates are calculated based on the risks that the insurance provider underwrites. However, the factors that may affect your insurance premium amount are as follows-
Car Related Risks
A few parameters like the car model, its cubic capacity, and fuel type, help the insurance providers determine the premium rates. Also, commercial vehicles and SUV (Support Utility Vehicles) tend to have high premium rates as insurers usually get numerous claims on these cars. Moreover, diesel cars tend to have a higher premium rate compared to petrol-based vehicles.
Location Related Risks
This factor is dependent on the registration location. Premium rates are high for people living in urban areas or near highways. Also, if theft and loss probabilities are high in your area, then the premium rates tend to go up alongside.
Driver Related Risks
The experience and the age of the owner/driver of the vehicle is taken into consideration. If the car has multiple drivers, then you might have to pay high premium rates.
So, how can you avail discounts on insurance premiums will be an obvious next question. In that case, here’s what you can do to reduce your premium amounts-
Check for No Claim Bonus (NCB)
If you have been a responsible driver throughout your policy term and have not made a single claim, then you can benefit from the No Claim Bonus (NCB). The insurance provider offers you (the policyholder) with No Claim Bonus in case they have not claimed on their insurance during the policy term. Furthermore, you get a discount on premiums when renewing policy online.
Check for Claim Settlement Ratio (CSR)
Before you buy insurance online, it is worthy of considering the previous records of your chosen insurance provider. Here, check the Claim Settlement Ratio (CSR), which is the time taken by the insurer to settle a claim from its clients. It is highly advisable to choose a provider that has a good CSR record. You can easily find the Claim Settlement Ratio of different insurance providers on the IRDA website.
Benefits of Car Insurance Plan in India
With a car policy, you can financially cover a considerable loss incurred by your vehicle in case of accidents, theft, or loss
It covers lawsuits, including the legal fees
It provides financial benefits to the survivors in case of death
It covers expenses for car repairs
It covers damage caused due to accidents such as theft or fire
A Final Thought
When looking for car insurance in India, make sure that you choose a policy that does not only fulfil your requirements but also offers affordable premiums. Also, make sure that you consider the above mention pointers when selecting the right policy.
Are you looking for car insurance?
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So, why wait? Keep your vehicle safe with car plans at attractive and affordable premium rates. Also, Finserv MARKETS offers cashless claim settlement across 4000+ network garages in India. Thus, allowing you to ride dent-free no matter where you decide to travel in India.
Take a look at our full range of car insurance plans across different brand and models that you can choose from and apply right away!
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