Things You Need to Know Before Buying a Car Insurance Plan

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The auto insurance segment rules the non-life insurance market in India. Approximately 53% of the registered insurance premium comes from auto insurances. The primary reason behind this is it is mandatory for every car owner to have a third-party liability insurance plan for their cars.

Now, other than abiding by the law, should you not buy a car insurance plan? Of course, you should. It has a lot of benefits. The issue, however, is that many just blindly buy the first insurance plan they see. To avoid it, you need to know what to look for in a car insurance plan.

It is this that I am going to help you with today. In this article, I will be talking about 5 things you need to know before buying a car insurance plan. So, without wasting our time, let us begin.

Cover Range:

It is one of the most essential aspects of an insurance plan. You don’t just want to buy insurance for its sake, you want something that actually benefits you. When you buy a Comprehensive Insurance Plan, it protects you against not only third-party liabilities but also from many other factors mentioned in the policy.

In addition, you can also buy add-on covers to further enhance your protection.

Insurer’s Reputation:

When you buy from a reputable insurer you know thousands of others have bought from the same company and have benefitted. They could not have built otherwise, right? Therefore, you get to have a good night’s sleep knowing you are in safe hands.

On the other hand, buying from an insurance company no one knows about is like shooting in the dark. It might work, but if not, then you are in trouble.

Network Garages:

Many insurance companies have tie-ups with garages. When you repair your car from these garages, they send the bill directly to the insurer who pays for it. As a result, you don’t need to worry about not having cash or a card with you.

So make sure to check your insurer has a vast network of garages before buying from them.

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Insurance Declared Value:

The maximum amount your insurer gives you in case your car is stolen or is damaged beyond repair is called Insurance Declared Value (IDV). In case you choose a lower IDV, you would get a lesser amount. On the other hand, you would also have to pay a lesser amount of premium.

If you choose a higher IDV, you would have to pay a higher premium amount but get a better price in case your car is stolen or irrevocably damaged. So, consider what you want and choose accordingly.

Easy Claim Process:

Before buying an insurance policy, make sure to check for the claim process. Is it hassle-free and less time-consuming? Is there a lot of paperwork involved? All of it will ensure how much mental peace you will have in case of a mishap.

Nowadays, many insurance companies offer online claim services as well, making the task even easier.

Conclusion:

In 2018, India recorded 151 thousand deaths due to road accidents. In such a state, buying a car insurance plan will save you from a lot of troubles. However, consider all of the aspects of the process and you will never have to lose a night’s sleep over it.