The entire family gets excited when buying a new car in Indian culture. It signals a great deal of joy, success, and the start of the family road trips you’ve been planning in your brand-new car. People frequently forget that purchasing a new car is a significant liability rather than just a fun experience.
If you think about it carefully, you’ll realize that owning a car or purchasing a new one carries a lot of responsibility because we have to watch out that we don’t crash into anyone while we’re driving. We should have adequate insurance coverage for both our car and the third party to guarantee compensation in the event that we do this.
In addition to being our responsibility, the Motor Vehicle Act makes third-party liability insurance a requirement. There are many insurance companies on the market that offer various types of auto insurance policies, but we should think about which one is best for us. Before choosing which policy to purchase, we must compare car insurance in order to get the best deal. For which there are few things we should keep in our mind:
List your requirements in short order: It’s critical to decide what you need from a car insurance policy before you purchase one. Simply write down the types of coverage you are looking for in a policy, such as TPL, IDV, add-ons, and so forth.
Comparing coverage: After you’ve finished whittling down your list of requirements, check out online comparison tools for the various insurance plans. Furthermore, a third-Party liability policy offers a different kind of coverage than a comprehensive policy. When compared to a comprehensive policy, which offers you full coverage and covers TPL, vehicle damage, and personal injury, liability insurance only covers any loss and damage you cause to a third party. Therefore, it is advised to compare car insurance policies in-depth before purchasing.
IDV (insured declared value) comparison: The premium rates are based on the IDV (insured declared value) of the car, which represents the current value of your car following a predetermined depreciation. The IDV of a car is influenced by the age of the car; the older the car, the higher the premium.
Premium: The cost of the insurance policy, which you must pay to the insurer, is another important consideration when selecting the best auto insurance plan. You might discover that some car insurance plans are priced very affordably, but a low premium does not necessarily indicate a better plan. Before making a final decision, you should weigh the pros and cons of the insurance. You should choose the same if getting better coverage at a higher price is truly worth it for you. Keep in mind that the cost of auto insurance is always influenced by a variety of elements, including model, age, vehicle type, capacity, fuel type, and more.
Compare the insurer’s CSR before choosing one. Whenever you plan to purchase an auto insurance policy, compare the CSR of the prospective insurers. You ought to buy a policy from a provider whose claim settlement ratio (CSR) is high. A company with a low ratio of claims settled should not be trusted with your insurance. The IRDA website makes a detailed report about claim settlement ratio available every year.
