A Car insurance plan is meant to protect an individual from incurring financial losses which may occur if his vehicle is damaged due to some reason. It is mandatory for every car owner to have at least a basic car insurance cover. Although most people understand the significance of car insurance, they often find it difficult to choose the right one. With so many choices available, selecting the right insurance policy may prove to be a time-consuming task.
If you’re planning to buy a car insurance plan, here are some important things you must know about:
1. Type of Coverage
Broadly, car insurance policies can be classified into two categories: third party insurance and comprehensive insurance. Third party insurance covers damages to other vehicles and people. If you cause an accident in which the other person is injured or his vehicle has been damaged, your insurance policy will cover the repair/medical expenses. It doesn’t cover the damage caused due to your own vehicle. Comprehensive insurance policy covers damages to other people’s vehicle as well as your own vehicle. It is important to keep your specific needs in mind and buy a car insurance that can prove to be beneficial for you.
2. Settlement of Claims
It is important to take into consideration the claim settlement ratio of the insurance company. The insurance firm should not just settle car insurance claims but must also settle them in a prompt manner. Nobody would like to wait for months to get the insurance amount. The insurance company you choose should be sensitive to the requirements of its customers and settle all the claims satisfactorily. Also, make sure that the insurance company you choose offers 24 x 7 claim reporting facility, and has a good track record of settling claims.
3. No-claim Bonus
If you’re a new car insurance buyer, it is important for you to know about no-claim bonus. No-claim bonus is the discount offered by the insurance company if the policy holder doesn’t make any claim. The discount is offered on the next year’s premium. Depending on the company and the insurance policy, these discounts often range from 20% to 40%. This can considerably reduce your car insurance premium and help you make significant savings in the long run.
4. Cashless Option
Just like health insurance policies, car insurance companies also offer cashless options to policyholders. Arranging for cash in case of some emergency can often prove to be a big hassle for you. With cashless option, such an inconvenience can be easily avoided. Many car insurance buyers in India end up overlooking the importance of such an option, which may prove to be a big mistake later on.
5. The Quality of Customer Service
Good-quality customer service will have a very positive impact on your overall insurance buying experience. “How promptly the company’s representatives respond to your queries?”, “Are they able to answer all your questions satisfactorily?”, “Are they willing to address your grievances and complaints? Do they have a dedicated customer support center that provides round-the-clock support to the clients?”, “Do they offer online car insurance policy?” etc. are some of the questions you should ask while choosing a car insurance company. You can also speak with the existing customers to know more about the quality of customer service offered by the company.
6. Payment Options
It is important to be aware about all the payment options available to you. Will you have to pay the premium in annual lump sum? If you wish to pay the premium in installments, it is important to check with the company if you can opt for quarterly or monthly installments. This will make it easier for you to pay your premium in a hassle-free way. Generally, companies offer flexible payment options to make the insurance buying process convenient for their clients.
7. Riders
A rider is a provision that has to be purchased separately from a policy. It also offers some unique benefits over and above the policy. The companies offer several riders along with basic car insurance policies. These riders are always designed to meet the specific needs of car owners. They can prove to be very useful in such situations. However, they may also increase the value of premiums you may have to pay for. Therefore, it is important to determine your specific requirements. This will help you find out if you really need a particular rider. If you don’t need them, it’s better to skip them to save money.
Choosing the right car insurance policy will provide you financial protection in case of an accident, car theft and other damage. More importantly, it will also provide you complete peace of mind. Buy best online car insurance policy is the easiest way to meet your vehicle insurance requirements. You can also compare different car insurance policies and buy a car insurance that gives you the best of benefits.
If you’re planning to buy a car insurance plan, here are some important things you must know about:
1. Type of Coverage
Broadly, car insurance policies can be classified into two categories: third party insurance and comprehensive insurance. Third party insurance covers damages to other vehicles and people. If you cause an accident in which the other person is injured or his vehicle has been damaged, your insurance policy will cover the repair/medical expenses. It doesn’t cover the damage caused due to your own vehicle. Comprehensive insurance policy covers damages to other people’s vehicle as well as your own vehicle. It is important to keep your specific needs in mind and buy a car insurance that can prove to be beneficial for you.
2. Settlement of Claims
It is important to take into consideration the claim settlement ratio of the insurance company. The insurance firm should not just settle car insurance claims but must also settle them in a prompt manner. Nobody would like to wait for months to get the insurance amount. The insurance company you choose should be sensitive to the requirements of its customers and settle all the claims satisfactorily. Also, make sure that the insurance company you choose offers 24 x 7 claim reporting facility, and has a good track record of settling claims.
3. No-claim Bonus
If you’re a new car insurance buyer, it is important for you to know about no-claim bonus. No-claim bonus is the discount offered by the insurance company if the policy holder doesn’t make any claim. The discount is offered on the next year’s premium. Depending on the company and the insurance policy, these discounts often range from 20% to 40%. This can considerably reduce your car insurance premium and help you make significant savings in the long run.
4. Cashless Option
Just like health insurance policies, car insurance companies also offer cashless options to policyholders. Arranging for cash in case of some emergency can often prove to be a big hassle for you. With cashless option, such an inconvenience can be easily avoided. Many car insurance buyers in India end up overlooking the importance of such an option, which may prove to be a big mistake later on.
5. The Quality of Customer Service
Good-quality customer service will have a very positive impact on your overall insurance buying experience. “How promptly the company’s representatives respond to your queries?”, “Are they able to answer all your questions satisfactorily?”, “Are they willing to address your grievances and complaints? Do they have a dedicated customer support center that provides round-the-clock support to the clients?”, “Do they offer online car insurance policy?” etc. are some of the questions you should ask while choosing a car insurance company. You can also speak with the existing customers to know more about the quality of customer service offered by the company.
6. Payment Options
It is important to be aware about all the payment options available to you. Will you have to pay the premium in annual lump sum? If you wish to pay the premium in installments, it is important to check with the company if you can opt for quarterly or monthly installments. This will make it easier for you to pay your premium in a hassle-free way. Generally, companies offer flexible payment options to make the insurance buying process convenient for their clients.
7. Riders
A rider is a provision that has to be purchased separately from a policy. It also offers some unique benefits over and above the policy. The companies offer several riders along with basic car insurance policies. These riders are always designed to meet the specific needs of car owners. They can prove to be very useful in such situations. However, they may also increase the value of premiums you may have to pay for. Therefore, it is important to determine your specific requirements. This will help you find out if you really need a particular rider. If you don’t need them, it’s better to skip them to save money.
Choosing the right car insurance policy will provide you financial protection in case of an accident, car theft and other damage. More importantly, it will also provide you complete peace of mind. Buy best online car insurance policy is the easiest way to meet your vehicle insurance requirements. You can also compare different car insurance policies and buy a car insurance that gives you the best of benefits.
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