As a vehicle-owner, you must be well aware that the Motor Vehicles Act 1988 demands you to mandatorily avail a third-party liability insurance cover for your car. Driving without this cover in place can attract severe penalties, which frankly, is not desirable at all.
So, if the insurance policy for your car- whether third party or comprehensive cover, has expired, it is crucial that you renew it as soon as possible! But if you are on the fence about which insurance policy to avail, it is best to give the following points a thorough read.
We have listed the points you will need to keep in mind when you compare car insurance policies, that will help you avail the cover best suited as per your requirements.
Points to Bear in Mind While Comparing Car Insurance Policies
Well, there is a lot of difference when it comes to availing a car insurance policy and getting one that serves your purpose well.
Looking through the following parameters while comparing insurance policies can help you avail the best policy in the market.
So, without further ado, take a look!
1. Coverage
When it comes to renewing a comprehensive insurance cover, each insurance provider offers differing benefits. While third party car insurance provide financial protection against
damages caused to third party (whether person or property), comprehensive policies help to maximise protection for personal damages.
Some of the things to look for under this policy include –
● Personal accident cover
● Damage/loss to own car due to accident, natural calamity or fire.
● Theft
● Customised add on covers (more later!)
2. Affordability
Even though we have an affinity towards choosing the policies that demand lower premium payments, it might not always be a good idea in the long run. So the best thing to do while renewing your insurance policy is to make sure that you are availing maximum coverage against reasonable premium payment.
3. A high IDV
IDV or Insured Declared Value is given by the manufacturer’s listed selling price for your vehicle minus its depreciation. This is the amount that your insurance provider will provide you with in case of total loss or damage to your vehicle.
Thus, before renewing your policy it is best to look out for insurance provider who will provide you with an IDV for your vehicle as well as provide you with the option to customise it.
4. Claim settlement ratio and process
If you decide to shift to a new insurance provider, you must mandatorily check the company’s claim settlement ratio. It refers to the total number of claims raised by
policyholders against the total number of claims settled. It is therefore crucial that you look for an insurance provider with a high claim settlement ratio to minimise your the chances of your claim getting rejected.
Further, you must also ensure that the claim settlement process under the insurance provider is simple and uncomplicated. This can help to save a lot of time and hassle later.
5. No Claim Bonus
No Claim Bonus or NCB is the discount that you can avail on your premium payment for your insurance policy if you have not raised any claims in the previous year. So, to save on your subsequent premium payments it is important for you to check if your insurance provider is offering the No Claim Bonus on your policy renewal.
6. Number of network garages
Under comprehensive car insurance policies, you can enjoy the facility of cashless repairs for your vehicles from the network garages of your insurance provider. Thus, while renewing your insurance policy, if you are changing your insurance provider it is pertinent for you to check the number of network garages under them. This will allow you to maximise your benefits from your insurance policy in case you need to seek repairing services for your vehicle.
7. Add-on covers
While it is not compulsory to avail add-on covers, they do make life significantly easier.
That is why, you should check the number of add-on covers you can avail with your insurance policy before renewing it. For instance, insurance providers like Digit offer the
following add-on covers with their car insurance policy –
● Return to invoice cover
● Zero depreciation cover
● Engine and gear protection cover
● Tyre protection
● Breakdown cover
● Consumable cover
● Passenger liability cover
Apart from these, if you are changing your insurance provider, it is best to check their reputation before you avail their services. You can do so by referring to the online
testimonials and customer reviews on various social media platforms.
So, make sure you conduct extensive research before you renew your car insurance cover to maximise your benefits from it!