In Indian culture, buying a new car generates excitement in the whole family. It means a lot of happiness, fruitfulness and the beginning of those trips that you have been planning with your family in your new car. In the excitement of a new car, people often ignore that buying a new car is not just a matter of fun, it’s a big responsibility.
If you analyze carefully, you will know that owning a car or buying a new car is a matter of great responsibility, since we have to make sure that we do not hit anyone from our car while driving. In the event that we do, we must have adequate insurance coverage for our car and the third party to ensure compensation.
Not only is it our responsibility to have car insurance, but it is also required by law to have third party liability insurance under the Motor Vehicle Act. There are various insurance providers available in the market, offering different types of car insurance policies, but we must consider the most suitable plan for us. To buy the right car insurance, we must compare it before deciding which policy to buy. For which there are few things that we must take into account:
Pre-select your requirement – Before purchasing auto insurance, it is very important that you first decide what you need in your auto insurance policy. Just list the type of coverage you’re looking for in a policy, such as TPL, IDV, add-ons, etc.
Coverage Comparison: Once you’ve finished shortlisting your requirements, compare policies online. In addition, the type of coverage offered in a third-party liability is different from that of an all-risk policy. The liability only covers any loss and damage caused to a third party, while the comprehensive policy offers you full coverage that includes TPL, damage to the vehicle and personal accident. Therefore, it is advisable to thoroughly compare car insurance policies before buying.
Compare IDV – Premium rates are based on the car’s IDV (Insured Declared Value), which means the current value of your car after a set depreciation. The IDV of a car depends on the age of your vehicle, the older the car, the higher the premium.
Premium: Another important factor in choosing the right car insurance policy is the policy premium that you must pay to the insurer. You may find that some auto insurance policies are available at very competitive rates, but a low premium doesn’t mean it’s a better policy. You should compare the features and benefits of the policy before making any final decision. If you get better coverage by paying some extra cost and it’s really worth it to you, you should opt for the same. Keep in mind that the auto insurance premium is always determined by multiple factors such as the model, age, type of vehicle, capacity, fuel type, etc.
Compare the CSR of the insurer: Always compare the CSR of the insurance company from where you plan to buy a policy for your car. You must purchase a policy from that provider whose claims settlement ratio (CSR) is good. Don’t buy a policy from a company with a low loss settlement ratio. Every year the IRDA publishes a detailed report on the claims settlement rate, you can easily get it on the IRDA website.