A new car is a big deal in Indian culture. This means lots of joy, fulfillment and the start of those trips which you’ve been planning together in your new car. People often forget that buying a car is more than a fun thing.
You will see that buying a car or purchasing a new one is a big responsibility. We have to make sure that our car does not cause injury to anyone. To protect ourselves and others from being hurt, it is important to have adequate insurance.
Not only is it our responsibility to get car insurance, but the Motor Vehicle Act also makes it mandatory to have Third-party liability insurance. There are many insurance companies on the market that offer car insurance. However, we need to choose the right plan for us. Before buying the best car insurance, it is important to compare each policy. There are a few things you should remember:
Your requirements should be shortlisted: Before you buy car insurance, you must first decide what you need. Make a list of what coverage you need in your policy, such as TPL, IDV and add-ons.
Comparison of coverage: After you have completed the short list of your requirements, you can compare the policies online. A third-party liability policy does not offer the same coverage as a comprehensive policy. The liability policy covers only the loss or damage done to third-parties, while the comprehensive policy provides full coverage that includes personal injury, TPL and damage to the vehicle. It is recommended to compare different car insurance policies before purchasing.
Compare IDV: Premium rates are calculated based on IDV (insured declared worth) of the car. This is the current value after depreciation. The premium will depend on how old your car is.
Premium: The premium you pay to your insurer is another important aspect of choosing the right car insurance policy. While some policies may be more affordable than others, a lower premium does not necessarily mean that they are better. Before making a final decision, you should carefully compare the benefits and features of each policy. You should consider purchasing the same policy if you can get better coverage for a higher price and it is worth it. Remember that your car insurance premium will be determined by many factors such as age, model, vehicle type, capacity, and fuel type.
Compare the CSR of each insurer: Make sure to compare the CSR for the insurance company where you plan on purchasing a policy. A policy should only be purchased from a provider with a high (CSR-claim settlement ratio). A policy purchased from a company that has a low claim settlement rate should not be bought. Each year, IRDA publishes a detailed report on claim settlement ratio.