A car insurance policy is a financial protection given by the company. It is an agreement between two parties, the policyholder and the insurer. This policy covers all the losses that one might face due to the damaged done to the car or in case of theft.
It is mandatory to have a car insurance policy for every car running on the roads of India. The Motor Vehicle Act 1961 has made compulsory to have a valid car insurance policy or third party insurance at very least. A penalty could be charged on the driver if caught without an insurance. A valid motor insurance policy ensures to eliminate the chances of any legal liability arising out during a mishap, such as an accident causing injuries or damages to a third party. This is because a package policy covers such third-party liabilities.
Before purchasing any car insurance, one should look few things in order to buy the best suitable policy for oneself.
Why is it important to have Car Insurance?
Your minimum liability and property damage coverage is the most important factor for coverage. More than anything else you need to purchase a car insurance policy to keep yourself legal to drive. You risk losing your driver’s license and fines driving without it. Get into an accident without liability coverage and you could be facing enormous penalties including bills from the damages you cause.
Choose your Insurance Plan smartly
Your need for car insurance plan is similar to that of your personal finance, as buying an insurance policy for your car directly affects your monthly budget. The same goes for your driving history and abilities at present. Thus, you need to understand and be clear about the amenities, terms and conditions and coverage you expect from a car insurance policy. You should be clear about exactly which type you are looking for? whether you’re looking for a cheap insurance policy or really need apt coverage for your vehicle. You should weigh your coverage options carefully and subsequently explore all the options available in your budget. Choose to compare car insurance policies online in order to be facilitated in terms of the best car insurance deal.
Don’t Always look for a cheap option
People often confuse for buying the best policy with the cheapest policy or affordable options while ignoring the comprehensive ones offering more coverage. It’s a common scenario and many people make this mistake, and they end up paying more out of their pocket for being under insured. It’s more apparent that you must be looking for a perfect balance between your insurance needs and coverage offered by the insurance policy. So, this turns out to be helpful in getting the best deal available in terms of car insurance.
Check insurer’s market repute
Before you purchase car insurance, you should prepare a list of general insurance companies offering different car insurance policies within your budget. Then you have to shortlist one or more insurers, based on your research work done about the company’s financial status, claim settlement ratio etc. The reason why it’s essential to know about an insurer’s claim settlement ratio is that eventually, you are going to claim at some point in the future, which, however, we can say is totally unpredictable.
Don’t ignore the deductibles
Always remember the fact, the higher the deductibles in your insurance policy, the lesser is the premium you pay. In other words, the higher the premium you will have to pay if you choose to buy a car insurance policy with lesser deductibles. Technically, choosing an insurance policy with higher deductibles just to save on the premium is not a wise decision at all. This is because you are going to pay from your own pocket when you file a claim in the future.
Reach out to an Insurance Agent
Most people don’t have clarity on the difference between an insurance agent and an insurance broker. They think both are the same, i.e. the insurance advisers. However, this is not the case. An insurance agent belongs to one insurance company and can sell policies on behalf of that company only, whereas an insurance broker deals with multiple insurance companies and is authorized to sell their products. Thus, it’s better to reach out to a broker as he can help you to choose from a range of car insurance policies.
In the end, we really hope you are now able to crack the best car insurance deal ever, as you have got enough information to evaluate multiple car insurance policies and opt out the best one.