Important Points to check before Buying Car Insurance

Important Points to check before Buying Car Insurance

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Points to check before Buying Car Insurance
Points to check before Buying Car Insurance

How a health insurance keeps you safe during emergencies is the same way a vehicle insurance works for your car during unexpected accidents and damage. Before buying car insurance you need to make sure that you have made the right choice that fits your budget and also keeps your car secure.

Type of insurance coverage

As you know there are two types of coverage; third party liability and comprehensive plan or own damage. While the former is mandatory and covers the third party involved in the accident the latter covers third party liability, property/car damage, personal accident, theft etc. Though own damage is costly it secures your life and the life of a third person in the unlikely situation where your car meets with an accident.

Brand or company

We always need to go to that insurance provider who is reliable and trustworthy. Assessing the credibility of a provider who has a good track record is easy now as there are lots of parameters available to check the customer satisfaction and feedback, claims settled, time taken to settle the claim and more. Hence we can make a decision as to which insurance company to choose by measuring these factors else there is always an option to shift to another insurance provider.

No Claim Bonus (NCB)

Make sure that the vehicle insurance policy document mentions No Claim Bonus i.e. if you did not use your claim, the insurance provider will offer you discounts in your premium for next year of policy. The more No Claim Bonus gets accumulated the more discounts and monetary benefits you earn without a break in your policy.

Customer Service

With people wanting to spend less time waiting, they always go for those providers that offer fast and timely response along with the best of customer service. Many providers now offer over-the counter insurance policies and fast processing of requests like cancellation, endorsements, claims etc. Some providers have also liaised with garages for cashless settlement of claims if the vehicle of insured meets with an accident.

Premium amount

The premium of the car depends on the Insured Declared Value or IDV and rate multiplier often decided by the insurance company, higher the chance of accidents, higher goes the premium rate. Model of the car, geography, age of the vehicle, daily mileage and occupation of the insured are some factors that decides the premium amount of the vehicle.

Compare the quotes

Don’t always settle for one insurance provider, with lot of options available like telephone, internet etc. you can simply browse and check for different insurance providers and their quotes and settle for one which you feel gives the maximum benefits at the least possible rate. Buying a policy online is much cheaper as you save the money you need to pay the agent or broker who liaisesin the middle, less paperwork, fast issue of policy and accessibility anywhere.

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Ann Maria Cleetus took her Masters degree in Journalism after her graduation in Communicative English. She is passionate in writing. Ann writes for online magazines, websites, blogs, press releases for clients, newspapers etc. Ann Maia Cleetus left Marcomm job to concentrate in Writing.

8 COMMENTS

  1. The No Claim Bonus point was very helpful. Thanks a lot. I have seen the car insurance companies just selling their policies and consumers blindly buy them not realizing the hidden costs which they end up paying extra. Internet indeed is a great source to look out for options. Reading more about the policies such as blogs and experiences will help us take better policy decisions in the future and take smart decisions. Since we cannot expect insurance companies to reveal everything, we have to work extra hard to save some bucks.

  2. Mentally, none of us are prepared for any untoward incidents in life but practically we should stay always stay alert. For example, having a car insurance in place. This way you can drive your car on road with a peace of mind. But preferably get your car insurance without the involvement of a middle-man.

  3. Before you take your family out, in your brand new car, make sure that your car is insured against any sort of damage or loss. Car insurance is the first thing that you should do for your new car. Most insurance companies provide car insurance. But before selecting the best policy fr yourself, you should research well; in terms of coverage, customer service, premium charged and so on. Choose wisely, live well!

  4. “PREVENTION IS BETTER THAN CURE”, this proverb truly works in our day to day life. Whether it may be ourselves or our belongings, everything needs to be insured. The article was of a great help in knowing the points one needs to make sure before applying for a car loan.The highlight was the NCB point, which i did not know and was really impressed after reading it. This article is worth reading and is a wise advice for the one’s taking a car loan.

  5. This is very useful post. The thing each and everyone who buys a car has to note is-Not all insurance companies will be genuinely telling all facts and facilities of the policy that they are extending. They will tell the favorable points that suit them. It is the responsibility of the buyer to check all these. Having basic knowledge about insurance will help us a lot. Nice posting, Thanks author!

  6. Insurance is a necessity rather than a luxury be it personal, home or car. With the increase rate of road accidents car insurance have become a must for every car owner. No doubt the company is important factor while choosing but other factors like customer service, premium amount and no claim bonus cannot be ignored.

  7. A car insurance policy is important and the author has done a commendable job in covering all the points that I was curious about. Third party insurance is mandatory but what I want to know is how expensive is it to insure one’s own life in the case of an accident. Choosing the right insurance policy and the right company is paramount. One of the ways to check up on the company’s track record is to have a lok at their claim settlement ratio.

  8. As obtaining the car insurance has become obligatory it is good to know pros and cons about the matter. As not everybody is an expert in this field, it is good to find an article like this in order to help you gather the right information and later on, the right decision.

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