How to choose the best plan for your car?

How to choose the best plan for your car?

In Indian culture, buying a new car brings excitement for the whole family. It means a lot of happiness, fruits and the beginning of the trip you are planning with your family in your new car. In the excitement of a new car, people usually overlook that buying a new car is not only fun, but also a big responsibility.

If you analyze carefully, you will know that owning a car or buying a new car is a big responsibility, because while driving we have to make sure that no one gets hit by the car. If we do, we should have proper insurance coverage for the vehicle as well as the third party to ensure compensation.

Not only is it our responsibility to insure the vehicle, it is legally mandatory to have third party liability insurance under the Motor Vehicle Act.

There are many insurance providers available in the market, who offer different types of car insurance
policies, but we should consider the best suitable plan for ourselves. To buy the right car insurance, we must compare it before deciding which policy to buy.

For which we should keep a few things in mind:
Choose your requirements: Before buying a car insurance, it is very important to first decide what you need in your car
insurance policy.

Make a list of the type of coverage you are looking for in the policy like TPL, IDV, add-on etc.
Compare Coverage: Once your requirements are shortlisted, compare policies online.

Moreover, the type of coverage offered in third party liability is different from comprehensive policies. Liability only covers any loss and damage caused by third parties, whereas a comprehensive policy gives you a complete coverage that includes TPL, vehicle damage and
personal accident.

Therefore, it is advisable to compare car insurance policies thoroughly before buying.
Compare IDV: Premium rates are based on the vehicle’s IDV (Insured Declared Value) which means the current value of your vehicle after a certain amount of depreciation.

A car’s IDV depends on the age of your car, the older the car, the higher the premium Another important factor in choosing the right car insurance policy is the policy premium that you have to pay to
the insurer.

You may find that some car insurance policies are available at very competitive rates, but a low premium does not necessarily mean that it is a good policy. You should compare the features and benefits of your policy before making a final decision.

If you can get better coverage for a little extra cost and it’s really worth it to you, then you should go for it.

Remember that car insurance premium is always determined by multiple factors like model, age, car type, capacity, fuel type etc.

Compare Insurer’s CSR: Always compare the CSR of the insurance company from where you are planning to buy a policy
for your car.

You should buy a policy from a provider that has a good claim settlement ratio (CSR). Do not buy a policy from a company with a low claim settlement ratio.

Every year, IRDA publishes a detailed report on claimthe settlement ratio, you can easily get it on the IRDA website.