How to choose the best plan for your car?

 

  In Indian culture, buying a new car brings excitement to the whole family. It means many joys, fruits and the beginning of the trips you are planning with your family in your new car. In the excitement of a new car, people often forget that buying a new car is not only a matter of fun, but also 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, because we have to make sure that we do not hit anyone with our car while driving. If we do, we must have adequate insurance coverage for our car as well as third parties to ensure reimbursement.

Car insurance is not only our responsibility but third party liability insurance under the Motor Vehicle Act is also mandatory by law. There are many insurance providers available in the market, offering different types of car insurance policies, but we should consider the best suitable plan for us. To buy the right car insurance, we should compare before deciding which policy we should buy. For which we should keep a few things in mind:

Shortlist your requirements: Before buying car insurance, it is very important that you first decide what you need in your car insurance policy. Just make a list of the type of coverage you are looking for in the policy like TPL, IDV, add-ons etc.

Compare Coverage: Once you are done with shortlisting your requirements, compare policies online. Additionally, the type of coverage offered in third-party liability is different from a comprehensive policy. Liability only covers any loss and damage caused to a third party, while a comprehensive policy gives you full coverage that includes TPL, vehicle damage and personal accident. Therefore, it is advisable to compare car insurance policies thoroughly before buying.

Compare IDV: The premium rate is based on the car's IDV (Insured Declared Value) which means the current value of your car after a set amount of depreciation. The IDV of the car depends on the age of your car, 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 have to pay to the insurer. You may find that some car insurance policies are available at very competitive rates, but a lower premium doesn't mean it's a better policy. You should compare the features and benefits of the policy before taking any final decision. If you get better coverage by paying a little extra and it's really worth it to you, then you should opt for it. Keep in mind that car insurance premium is always determined by various factors like model, age, vehicle type, capacity, fuel type etc.

Compare the CSR of the insurance company: Always compare the CSR of the insurance company from which you are planning to buy a policy for your car. You should buy a policy from a provider that has a good (CSR) claim settlement ratio. Do not buy a policy from a company with a low claim settlement ratio. Every year, IRDA releases a detailed report on Claim Settlement Ratio, you can easily get it on IRDA website.