Indian car insurance companies offer a wide range of policies that cater to individuals’ specific requirements. Nonetheless, with so many options in the market, choosing the right car insurance plan might become a bit overwhelming for certain individuals. This is because different plans entail different features and come at varied costs.
Thus, it is essential to conduct thorough research before picking the right car insurance company. Here are a few tips that would help individuals in their research.
Tips to choose the best car insurance company
Go through the tips mentioned below to choose the ideal car insurance company:
Know the requirements
It is imperative for individuals to assess their needs before searching for the right car insurance company. Mainly, Indian car insurance companies offer three types of policies – comprehensive insurance plans, third party insurance policies, and standalone insurance plans.
Third-party car insurance plans are a legal clause under the Motor Vehicles Act of 1988; hence, it is mandatory to have this policy. These insurance plans cover the cost of damages and injuries caused to the third party only, but the vehicle owner does not get any compensation.
Meanwhile, a comprehensive car insurance plan covers both the third party and the car owner against damages or injuries caused due to an unfortunate accident.
Whereas, a standalone policy brings financial coverage only to the policyholder. Thus, one needs to purchase a third-party insurance separately.
One must conduct his/her research based on the policy requirement. With a comprehensive plan, one may have to bear a higher premium, but it brings a more holistic coverage. Contrarily, two separate insurance policies, i.e. a third-party car insurance plan and a standalone one, will bring a financial edge in terms of premium paid. However, managing them simultaneously can be a difficult task.
Check the insurance company’s claim settlement ratio
Claim settlement ratio refers to the number of claims an insurance company has settled so far. Note that a good CSR means that the insurance company is competent in processing policyholders’ claims. Thus, it is extremely crucial to check the insurer’s claim settlement ratio before finalising a car insurance purchase.
Check the claim process
This is another vital factor that individuals must check while comparing car insurance companies. The insurance claim is a process under which an insurer compensates a policyholder based on the IDV (Insured Declared Value). Further, insurance companies extend two ways to settle a claim: cashless and reimbursement.
Under the former, policyholders simply need to take their car to a network garage authorised by the insurance company for any repairs. As the name suggests, this entire process is carried out cashless. Here, the insurer pays the garage directly, as per the billing amount.
For reimbursement claims, a policyholder needs to pay for repairs at a garage and then get the cost reimbursed from the insurer later on. The insurer provides reimbursement depending upon the applicable deductibles.
Both these processes have their pros and cons. One must assess his/her needs and then choose a method that has fewer complications, as suited.
Check all terms and conditions
Before signing the policy documents, one must take his/her time to read the terms and conditions thoroughly. It is crucial to check whether all terms are favourable and meet an individual’s requirements. Following this strictly would also avoid any legal hassles during the claim settlement process.
Add-ons provide additional coverage benefits to policyholders at extra cost. These riders usually feature coverage against certain damages that a standard policy does not cover. Individuals must ask an insurer about the add-ons available and then choose the ones that best suit their needs.
Choosing an ideal car insurance provider might seem daunting at first. However, aggregators online make this task easier. Individuals can compare insurance companies, check their claim settlement ratio and explore more details through this platform.
That said, buying an ideal car insurance plan is not a challenging task. Following the above-mentioned personal finance tips, compare car insurance companies online and it will help you to find an offer that meets their requirements.
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