Car insurance policies do not include many things in their coverage. This can vary from one insurance company to another. You need to pay special attention to this from the start.
When you buy a new car or vehicle, know that car insurance is legally mandatory in India. You cannot avoid it. Car insurance protects you from financial loss in case your car gets damaged or you get injured yourself or others. If you are buying a car for the first time, you will have to take out car insurance. There are some important and essential things that you should definitely pay attention to before buying a policy. Let us know about these things.
Third-party insurance and comprehensive insurance
Third-party insurance is a minimum legal requirement. It covers any damage to third-party property or injury to a third party. On the other hand, comprehensive insurance covers both third-party liability and damage to your car. It is always a good idea to opt for comprehensive insurance to get adequate protection.
Assess your coverage needs
When buying car insurance, it is important to assess your coverage needs. Your car insurance premium depends on the declared insured value of your car. The declared insured value is the current market value of your car. According to Bajaj Capital, you should opt for a higher declared insured value to get better coverage. You should also consider personal accident cover, zero depreciation cover, engine protection cover and other additional covers.
Compare Insurance Policies
There are many car insurance policies available in the market. It is important to compare policies offered by different insurance companies to find the best policy for your needs. You should compare the premiums, features and additional covers offered by different insurance companies before making a decision.
Find the Claim Settlement Ratio
The Claim Settlement Ratio is the percentage of claims an insurance company settles out of the total claims received. Before buying a policy, find out the Claim Settlement Ratio of the insurance company you are considering. A high Claim Settlement Ratio indicates that the insurance company is reliable and will settle your claims quickly.
Know what is not covered by insurance coverage
Car insurance policies do not include many things in their coverage. This can vary from one insurance company to another. It is important to read the policy document carefully to understand what is not covered under the insurance. Things that are not covered include driving under the influence of drugs or alcohol, damage caused by war or nuclear risks, and more. You should fully understand this to avoid any surprises during the settlement of the claim.
