Buying your first car is an exciting experience. However, it is important to remember that having car insurance is mandatory by law in India. Car insurance protects you against financial loss in case of damage to your car or injury to yourself or others. Here are some important things to keep in mind while buying your first car insurance in India.
Understand the Types of Car Insurance Available
There are two types of car insurance in India –
Third-party insurance and Comprehensive Insurance.
- Third-party Insurance is the minimum legal requirement. It covers damage to a third party’s property or injury to a third party.
- Comprehensive insurance, on the other hand, covers both third-party liability and damage to your car. It is always advisable to opt for comprehensive insurance to be adequately protected.
Assess Your Coverage Needs
When buying car insurance, you need to assess your coverage needs. The premium of your car insurance depends on the Insured Declared Value (IDV) of your car. The IDV is the current market value of your car. You should opt for a higher IDV to get better coverage. You should also consider add-on covers like personal accident cover, zero depreciation cover, engine protection cover, and others that may be useful to you.
Compare Car Insurance Policies
There are numerous car insurance policies available in India. It is important to compare the policies offered by various insurance companies to find the one that suits your needs the best. You should compare the premiums, features, and add-on covers offered by different insurance companies before making a decision.
Check the Claim Settlement Ratio
The claim settlement ratio is the percentage of claims that an insurance company settles against the total claims received. It is important to check the claim settlement ratio of the insurance company you are considering before purchasing the policy. A higher claim settlement ratio indicates that the insurance company is reliable and will settle your claims quickly.
Know the Exclusions
Car insurance policies come with exclusions that may vary from one insurance company to another. It is important to read the policy document carefully to understand the exclusions. Some common exclusions include driving under the influence of drugs or alcohol, damage due to war or nuclear risks, and more. You should be aware of the exclusions to avoid any surprises at the time of claim settlement.
In conclusion, buying car insurance is an important decision that requires careful consideration. You should assess your coverage needs, compare policies, check the claim settlement ratio, and be aware of the exclusions before making a decision. By keeping these things in mind, you can ensure that you get the best car insurance policy that suits your needs and budget.
