Owning a car today is an indispensable part of life. It is no more a thing of luxury. Every average Indian in today's time aims at buying a car of his own as soon as he hits the legal driving age of 18. Comfort, convenience, a sense of security, and a tad bit of pride is what you feel when you get yourself a brand-new car.
Well, just booking your first car is not enough. If you are unaware, please note that as per the Indian Motor Vehicles Act, 1988, each car owner needs to mandatorily hold a legally valid insurance cover before hitting the road. A bare minimum Third Party Liability Only Cover is what you require to drive your car freely.
But is this bare minimum cover enough for you? Not at all! It simply covers all the legal liabilities towards the third-party person. All other expenses would have to be borne by you. So it is necessary that you get yourself another car insurance that protects your car from significant risks.
If you are a first-timer and have no clear idea about buying the best car insurance policy, let us guide you. Scroll down to know about what to consider when buying car insurance.
Types of car insurance policies:
Comprehensive car insurance
Third-party car insurance
Those policies which cover both third-party damages as well as losses arising because of damage to the insured vehicle are called comprehensive car insurance policies.
Those policies which offer coverage for only the financial liabilities which arise because of any loss or damage to the third party are called third-party car insurance policies.
- Personal accident cover
- Damages due to natural calamities
- Losses and damages to the third party
- Death or injury of a third person who is involved in an accident with your vehicle.
- Personal accident cover
- Damage to third party property or vehicle
Things to know before buying car insurance
- Think twice before choosing the brand: Brands do matter when you are choosing something as significant as your car insurance plan. Research well about the insurance provider. Evaluate their brand value and try to understand how trustworthy they are. Cross-check their brand promises.
- Evaluate your requirements: Introspect for a while about your requirements. Consider whether you stay in an area where car theft is common or a flood-prone area. Choose your plan accordingly.
- Comparison of car insurance online: This is highly essential before buying your car insurance policy. Compare the policies that are providing you with similar coverage. Keep the cover as a constant and then compare the rates of multiple insurers.
Things to consider when buying car insurance
- Look for the range of the covers: You should get yourself a car insurance policy in order to save precious money in case of any mishap. Therefore, make sure you invest in a comprehensive insurance policy that offers broader coverage. Also, add-ons can further improve the range of coverage.
- What does the basic plan look like? The basic plan included third-party car insurance under which the insurer will cover your expenses related to damages/injuries of a third-party vehicle/individual.
- Add-on covers: Always adopt a practical approach while choosing your add-on covers. These are nothing but the small covers which can further enhance your comprehensive car insurance plan. Hence, be very selective while selecting your add-on covers.
- Policy terminology: Make sure you are well-versed with the policy jargon. Most of the insurance providers nowadays offer simplified car insurance policies. There are executives who are available 24x7 to clear your doubts. User-friendly apps and responsive websites make your task a bit easier. But do not forget to go through the fine prints of the terms of the contract.
- Cashless facility: Go for the garages that are tied up with the insurance provider. In such a case, the insurance provider will directly pay the garage owner.
- Voluntary deductibles: When you agree to share the risk, you are actually volunteering to pay a specific amount of the claim. In return, you will be required to pay less premium to the insurance company.
- Portability of policy: Go for the plan, which allows easy portability. You need not enter into a lifelong relationship with the insurance provider. Rather, you can switch to a different insurance company conveniently by renewing your car insurance plan.
Q1. What happens in case I do not ask for any claim for an entire year?
Ans: Generally, you will get the benefit of a No Claim Bonus for all those years when you do not make any claim. You can therefore avail of a discount on the amount of premium you pay in the upcoming years.
Q2. What will happen if my car insurance policy expires?
Ans: When your car insurance policy expires, the insurer will assign an inspector to inspect your car. The process may or may not be chargeable. If you do not renew the insurance plan within 90 days of cancellation, you will lose your No Claim Bonus. This may result in substantial financial loss, and thus you should avoid the expiry of your insurance claim.
Q3. Does a car insurance policy cover natural disasters and calamities?
Ans: Yes, of course. Your comprehensive car insurance plan will cover any kind of tangible damage to your car by natural disasters like cyclone, flood, earthquake, hurricane, etc.
Q4. Under which circumstances can my insurance provider reject my claim?
Ans: An insurance provider can refuse to settle your claims in case:
- You have got your car repaired before making a claim.
- You have failed to complete the transfer formalities to the entity or owner.
- You have misguided the insurance provider about the purpose of using your car.
- You have not intimated any modifications done to your car to the insurance company and RTO.