Purchasing a new car is very exciting and you would want to protect it from danger, road-accidents, scratches, dents, etc. Sadly, no matter how much you protect your vehicle, somebody’s car or bike can bump into yours accidentally. Looking at the traffic situation here in India, the chances of this happening are higher than ever before.
Luckily, we have car insurance policies to our rescue. These act as great financial backups during serious situations like accidents, theft, etc. You even have the option to choose between third-party car insurance and comprehensive insurance policies. A third party car insurance policy is a basic one and will offer protection in case of damages caused to the third-party; plus, it is mandatory to have as per the Indian law. Contrariwise, a comprehensive policy offers wide coverage, i.e. it provides the cost for damages to your car along with the third-party.
Now, let us move forward and look into the 7 things to remember before you buy car insurance:
- Coverage and issuance speed
The first question to ask before you buy car insurance is: when will the policy be issued and how soon will the coverage start? If you’ve to wait for months, then it isn’t the right policy; choose a different one. This is the modern era and nobody will want to wait that long.
- Insurer reputation
The next thing would be to verify the reputation of the insurance company and their record, how quickly they settle claims, their claim settlement ratio, customer reviews, etc.
- Cashless facility
This is a great option during emergencies, i.e. when you don’t have cash in hand. The cashless option means that you won’t have to pay to repair the damages to your car. However, this only works if you’ve taken the vehicle to a garage which is a part of the insurer's network. Always look if your insurer is providing you with this option; if no, then it’s a deal-breaker.
- List of network garages
Check if your insurance company has a good list of network garages, especially near you. Also, consider the reputation as well as the feedback on these garages when you choose a car insurance company.
- Additional coverage
The insurance company will offer you with great add-ons such as 24x7 spot assistance, engine protector, lock and key replacement cover, etc. Add-ons are good to have unless you’re on a budget. Sure they do enhance your existing coverage but also add to the premium. So only buy them if required.
- Compare premiums online
Always compare the premiums of multiple policies online before selecting the best. Look for good coverage at an affordable premium. Another point to consider would be the deductible amount. It is the amount that you must pay in the event of a claim. The insurance company reimburses you for the balance amount only after you have paid the deductible. The premium is inversely related to the deductible.
- 24x7 customer service/support
The insurance company’s support/service once you have purchased a policy is very important. Choose a company which co-ordinates well and is cordial even during the claim process. You wouldn’t know this unless you compare and ask people around you about their experience with different companies before reaching a decision. Lastly, your insurance company must have 24x7 support as well as contact points available for you in the case of an emergency.
Now that you know the above-mentioned tips, you can buy a car insurance policy without facing many issues. But before you make the final call, another important tip would be to evaluate your premium using a car insurance premium calculator online. This will help you find the best deals for your valued possession.