You’ve just bought a brand new car and you are all set to drive across the hills. But, wait is your car insured? What if your vehicle collides with another vehicle and causes damage to both property and life? What If you land up in an emergency situation and all you need is an instant source of assistance? To overcome such unforeseen hazards, it’s essential to sign up for an auto insurance cover. Though buying a vehicle insurance isn’t a time consuming activity, you may take a little time to pick a reliable car insurance provider and choose the best plan. Generally, we either go by word of mouth or TV commercial as an opinion to decide which insurance to go for, however it’s recommended to do a brief research and check various aspects before zeroing a perfect auto insurance policy. Let’s understand how an auto insurance cover function and then make an informed buying decision.
Third party liability only or Comprehensive cover – Which is the best?
In a nutshell, there are two types of Auto Insurance or Motor insurance. First is the third party liability, which covers damages caused to third party person or property, which is a mandate for every vehicle. Second is the comprehensive cover, which covers own damage, loss due to natural calamities, theft, and burglary and also the mandatory third party liability. Although Third party liability only policy is mandatory, it is not enough for any vehicle. For instance, if your vehicle meets with an accident and it gets damaged totally or partially you would have to bear the repair and labour expenses, which may burn a hole into your pocket. Hence, it’s always advisable to opt for comprehensive cover.
To buy an auto insurance, you don’t really have to be an expert (Keep calm and turn off the panic mode). Ask these 10 questions to your insurance agent or check these features online for comparing plans instantly. This will not only help you in finding the best plan but also assist you in making an informed decision.
- Understand your requirement and buy
It’s very important to understand what are your requirements before buying an auto insurance policy; jotting down the necessary covers will help you in making a quick decision.
- Check for the coverage and exclusion
It’s imperative to know what your policy covers and what it excludes. You pay for the coverage, hence always check what all is included in your policy.
Premium is the cost that you pay to the insurance company for securing your vehicle from unforeseen damages. The cost depends upon a lot of factor such as the age of vehicle, registration city or state, cubic capacity and No claim bonus.
- Add on covers
Many insurance companies offer add on covers to give you an enhanced cover. For example Engine and gear box protector, emergency assistance and lots more. These add on are beneficial and cam be opted by paying a little higher premium amount.
- Network Garages
A good motor insurance company would have a vast network of garages. HDFC ERGO has 6000+ cashless garage for repairing your vehicle.
- Customer Support
Motor insurance company must offer 24×7 customer support, so that you can report your accident at any point of time.
- Compulsory deductibles
Every insurance company has a voluntary deductible, which can be opted by the vehicle owner if he wishes. This allows you to pay a share in case of losses to reduce the premium amount.
- No claim Bonus
As the name suggests, no claim bonus is a reward that an insurance company rewards you in case of zero claims in one policy year. This bonus is given in form of discount for premium payment of the succession year.
- Claim settlement ratio
Checking the claim settlement ratio is very important before choosing a motor insurance company. Claim paying ability shows how reliable the brand is for securing your vehicle and settling claims if any, in the long run.
- Denial of auto insurance
Motor insurance is meant for your safety, for instances where you met with an accident and things went unfavorable. However, if you are found driving under the influence of alcohol then your insurance claim may get rejected. Always look at the seasons why claim can be denied before buying an insurance plan.
Like somebody once said, Prevention is better than cure it’s always essential to opt for a preventive measure rather than curing the issues later. It’s highly probable that you may not land up in an accidental mess and drive safely, but insuring your vehicle safeguards you from probable financial risks and uncertainties. Look around and find out the best car insurance plans for protecting your beloved vehicle.