The ecstasy of owning the car will be prolonged until it is safe and secured with the right insurance. Buying car insurance doesn’t mean that your car is 100 percent safe. It still has the risk of being damaged either naturally or artificially, robbed, etcetera. The peace of mind while getting your car insured is that the arising risk will get shared by you and the insurance provider or the insurer. You buy a car insurance policy to tackle an unforeseen situation from the day you purchase your car. So, the money spent to obtain the policy cannot be treated as an expense preferably it is an investment that will help you at the most needed hour. So, here are the things you have to consider before buying car insurance. Also, we have given the ways you can shop for the best insurance policy available in the market.
THINGS YOU MUST CONSIDER WHILE BUYING A CAR INSURANCE:
- Understand various terms related to Car Insurance:
Know various terms like who is the first party, second party, and third party in an insurance policy. Also, there are some technical terms like No-claim bonus, own damage, Insured Declared Value, add-ons, etc. Do complete research about these new terms if you are not familiar with them. If you don’t understand any particular word or term, ask experts help before you decide on buying car insurance.
- Know the claim procedure:
The purpose of buying any insurance policy is to apply for a claim and get the assured coverage during the time of risk. At risk, you already have so much on your plate and it will become tedious for a person to undergo a stressful and time-consuming claim process. So, get the list of all documents you must have and the procedure to claim your coverage before you get the insurance. Once you know the claim process, stay cool-headed even after the occurrence of the damage because your car insurance will be there to help you.
- Access your Needs:
Each person has a different driving style and will use their car for various reasons. So, analyze your needs and get the right type of insurance. In India, there are two types of insurance namely third-party liability and comprehensive insurance. In comprehensive insurance, compensation will be provided for the damage caused to your vehicle, the opposite driver, his/her vehicle, yourself and your dependents. Whereas in third-party liability insurance, the coverage will be available only for the opposite party. So, know your needs and apply for the right car insurance.
WHAT ARE THE METHODS TO BUY A CAR INSURANCE?
After the most important process of accessing and researching, you finally have to buy your car insurance. Here comes the question of the best insurance company, mode of buying, and other related questions. Here we have listed the most common methods one can buy a car insurance policy:
- Purchasing from Car Dealer:
Car dealers at the showroom have a tie-up with the insurance companies and one can buy their car insured right at the time of buying itself. This process saves a lot of time and money too. It saves the time you spend on researching the policies available in the market, getting quotations from several insurance providers, applying for the insurance, etc. Some car dealers even offer huge discounts on premiums to make the deal sweeter. These car dealers also have better customer service with a dedicated help desk for car insurance enquiries and claim settlements. Thus, you can grab all the advantages of the tie-up between the car dealers and the insurance providers.
- Purchasing through Agents:
If you opt for conventional methods of buying car insurance, you can look for genuine insurance agents in the market. There are two types of agents, namely the captive agents and the independent agents. Captive agents sell the policies of only one insurance company. They can give every detail of the different policies offered by that company and can convince you to buy their product. Whereas an independent agent sells insurance policies of different insurance companies. They have a complete understanding of the market and will educate you about the competitors too. By knowing the quotations from different insurance providers, you can then decide to buy the right insurance for your car. Approaching an agent will help you in various ways like you get personalized services, post-purchase services, local advice, discounts on bulk purchases, and helpful suggestions from an expert. Please ensure that you buy your car insurance from an authorised agent licensed by the IRDA. Don’t fall into the scams of fraudulent agents and avoid the risk of losing your money.
- Purchasing via Online:
Today, most of us prefer online purchases rather than traditional methods. Purchasing car insurance and other investments online has become hassle-free, quick, and easy for today’s generation. One can get complete information about the insurance company from various direct and indirect discussion forums. They get the ratings of the company, public opinion, claim settlement ratio, and any information at their fingertips which eases their decision process. Purchasing online reduces the tedious paperwork as you have to fill in only the basic details. Also, you can either directly purchase from the insurance company or the insurance broking website. The biggest advantage of approaching an insurance aggregator or broking website is you can compare the various car insurance plans available in the market. As you make the payment for the purchase online, you have an automated receipt sent to your mail that can act as proof. So, there are no possibilities for frauds or scams online.
Something is always better than nothing. It is good that you have decided to buy car insurance. Wherever you buy, make sure they are authorised to avoid scams. Do extensive research on their products before purchasing car insurance.