How to Choose the Best Vehicle Insurance?
I just bought a new car! The majority of Indians want to use this phrase at some point in time. If you have managed to do that, it’s a job well done. Selecting the right car can be a task, but if you take a sensible approach, it can be a lot of fun as well. And the same goes for buying the best car insurance in India as well.
The presence of a plethora of options to choose from can make the process of buying car insurance a bit overwhelming. However, if you take the right approach, it can turn out to be a bit of fun along with some learning. We will help you choose the best car insurance in India using tried and tested methods.
Buying Insurance Like a Seasoned Campaigner
If you want to find out which car insurance is best in India, the following steps will help you get closer to the policy.
Explore Policy Options
This is the first and foremost step in choosing a car insurance policy. Knowing the different types of policies out there will help you make an informed decision. The following are types of vehicle insurance in India that you can choose from
- Third Party Liability
A third party liability policy is a vanilla car insurance policy. In the event of an accident, the policy ensures coverage for damages to other individuals, properties or vehicles. This minimal coverage ensures that the policy premiums are the lowest. However, it might not be adequate for your usage.
- Comprehensive Policy
A comprehensive plan builds on the top of a third party liability policy. It adds its own damage coverage along with the benefits of a third party liability policy. Thus, enabling you to file a claim for damages to your car as well. A comprehensive plan also enables you to opt for riders or add-ons. By paying a small premium, you can bring additional benefits to the policy.
- Pay as you Go
Pay as you go car insurance policies were introduced only recently. As the name might give away, you pay only for the distance that you travel. You can buy the policy either for 3000 Kms, 5000 Kms or 7500 Kms. It is ideal for individuals, who do not drive their vehicles a lot. The policy will help them reduce the cost of the premium.
- Third Party Liability
Setting the Right IDV
In the unfortunate event of an incident or mishap, the insurance companies refer to the market value of the car for claims. The IDV or insured declared value of the car denotes the same. It is the maximum value of your car in the current market.
And if there were to be any damages beyond repair or your car is stolen, your insurer will pay the IDV as compensation. The IDV is also the leading factor in deciding the policy premium. Thus, a higher IDV will translate to a higher policy premium and vice versa. Most insurance aggregators allow you to fiddle with the IDV, thereby letting you change the policy premium.
Trial Room for Policies
Several insurance aggregators can help you with buying a car insurance policy. The aggregators essentially are trial rooms for you to try out different policies. Based on your requirements, the aggregator will list out all the available policies.
Depending on your needs and requirements, you can opt for a plan that offers you the best of both worlds. A plan with good coverage that is also light on your pockets. As you compare different policies, you stand the benefit a lot more, owing to discounts by insurance companies as well.
It is no secret that add-ons come at a price. However, given the larger picture, when you choose them carefully, they will help you save money in the longer run. Some examples of most commonly opted-for add-ons are zero depreciation cover, roadside assistance, engine protection cover, etc.
Each of these add-ons serves a different purpose. Thus, it is a good idea to assess your needs and then include one if necessary. Just because your boss bought an engine protection cover, you might not necessarily need the same.
Discounts and Some More
No one in their right mind would want to pay more for something that is available at a lower cost. When you are buying a car insurance policy, the same applies as well. One of the perks of comparing policies via an insurance aggregator is that you can compare the discounts on offer as well.
Notably, you can benefit from the NCB or No Claims Bonus. Insurance companies offer this discount to policyholders who have not made any claims in the previous year. Similarly, you can install devices that enhance the security of your car, and it will fetch you another small discount.
The above will help you buy or zero down to the best car insurance in India. However, you can take it a step further and look for the best car insurance company in India. Here are some effective parameters which will help you decide the same.
A) Network Garages
For anything wrong with our vehicle, we visit a garage as the very first step. The same also applies in the case of an accident. Thus, an insurance company with a wide range of network garages will make your life easy.
B) Claim Ratio
Claim Settlement Ratio represents the total number of claims an insurer has settled against the total number of claims filed. A higher number is desirable.
Incurred Claim Ratio is the total amount of money that the insurer has paid as claim against the total amount of premium that has been collected during the same tenure. Anything between 60-90% is desirable. If ICR is more than 100%, it means that the company is running at a loss.
C) Simple Claim Process
Insurance companies are coming up with simple and smart solutions to make the claims process simpler. A company with a hassle-free claims experience will make your life easy.
Buying the best car insurance in India is neither complicated nor extremely difficult. To buy the best car insurance policy, you simply need to keep the above in mind. Knowing what you need and not opting for the cheapest policy out there are another two effective ways of getting the best.