The 10 most important tips to purchase car insurance
So, You’ve bought a new car/auto, and now you need to get car insurance. Or maybe you already have car insurance, but you’re looking for a change? How can you cut through all the hikes and find a policy that suits you at a reasonable price? Ten tips revealed on how to purchase car insurance.
1. Compare similar auto insurance policies
Always compare auto insurance policies before buying. The more similar they are, the more useful your research will be. Before you start comparing policies, ask yourself how much liability coverage you need to protect your auto and other assets in case of an accident. This is an essential step as you’ll then be able to compare policies that provide the same types and amounts of coverage. It’s best to have a qualified insurance professional help you make these decisions.
You can compare car insurance on Policy Bazaar, Bajaj Allianz, Policy Bachat, CoverFox, Money Super Market.
2. Insured Declared Value(IDV)
IDV is the maximum Sum Assured declared by the insurer which is provided on theft or total loss of a vehicle. IDV is the latest market value of the vehicle. To reduce your premium your agent can reduce this amount.
3. Voluntary Excess
In case of an accident, If you have opted to pay for the first 10 thousand rupees. Then this amount may be reduced by your premium amount. Though there can be a problem if your agent does this without informing you. Which is what happens quite a bit, so watch out.
4. No Claims Bonus
Please make sure you get the right no-claims bonus. In case you take more than you are entitled to, your claim if any may not be processed.
5: Cover Note
This is valid for the first 60 days, after that, you must get the final policy document. If you do not receive this, you may not be covered by insurance. So make your agent provides you with this before validity.
6. Cashless
Never get over excited by cashless. Nowadays most companies are providing a cashless process with multiple partners in every city. Your agent may guide you regarding which companies have a cashless settlement tie-up with which company, and garage.
7. Always buy insurance from an insurance agent
Ask for the agent’s license number, and cross checks it on the IRDA website. Ask your agent:
- How long has the company been selling auto insurance?
- What level of customer service can you expect from the company? For example, does the company have a reputation for paying claims promptly?
- How long do you have to file a claim after an accident, theft, or other covered loss? This is usually specified in the policy.
- What steps do you have to follow throughout the claims process? For example, can you choose your repair shop or do you have to use one selected by the company?
- Will the company cancel your policy if you miss a premium payment, or will it just send you a late notice?
- Does the company offer the extra endorsements you’re looking for (such as towing and labour or increased coverage for rental cars), and at what additional cost?
- Does the company offer the same (or better) discounts as its competitors (discounts can also vary widely among insurers)?
8. Be truthful in your declarations on the proposal form.
This will ensure that your genuine claims will be paid.
9. There is a lot of misinformation in the market.
So get everything in writing or cross check it on a reputed website like policybazaar.com.
10. Last but not the list, Always drive safely.
Never drive under the influence of alcohol. It will reduce your premium while covering the risk.
