Purchasing a car is like introducing a new member to the family as you have to take care of it like you would look after a baby. You would also end up spending a lot of your hard-earned money in doing so. Hence, it is important that you protect this vehicle against future mishaps by simply purchasing a car insurance policy. Also, you don’t have an option but to buy one as it is mandatory for every vehicle plying on Indian roads to have a third-party liability cover at least, as per the Motor Vehicles Act of 1988.
Now that you know it’s compulsory, you would want to buy the best possible cover for your car. Learning about car insurance all at once might confuse you a little. Also, many avoid buying car insurance as they’re scared of high premiums. Therefore, here are a few tricks for you to understand premium during purchase or car insurance renewal.
- Cheaper is not always better
People always want the cheapest and the most affordable deals, even when it comes to their car insurance. But what they do not realize is that less expensive covers might not always offer you the full protection that you might require. Also, you might later have to pay heavy bills for repairs from your pocket.
Firstly, it is important to know your insurance requirements. Later, decide on the type of coverage you need, i.e. whether you just want a third-party liability policy or a comprehensive one. Then go about comparing different policies and find one that balances your insurance needs and the coverage offered.
- Choose the right plan
Be smart when selecting your insurance plan. When you buy an insurance policy, it affects your entire budget. Therefore, before spending for a coverage you might not even require, be clear about what you expect from your insurance company.
Maybe you don’t want extensive coverage and are only looking for an insurance policy with low cost, but such a line of thought is not encouraged. Analyze your needs, prepare a budget, and see which cover fits your budget. An easy way to do this is to compare car insurance policies online and looking for the best possible deals.
- Consider deductibles
High deductible in your insurance policy means less premium to pay. This means, if you purchase a car insurance policy with lesser deductibles, you will have to pay a higher premium. However, this does not mean that you just consider one of these while selecting your policy. Going for a higher deductible only because you want to save on the premium isn’t a very smart decision either. There should be a balance between the deductible and the premium so that you can have the capacity to bear the same if needed.
- Look out for reputed insurance providers
When buying car insurance policy, don’t rush into making decisions before analyzing various insurers and their policies. Firstly, list out all the general insurance companies ready to provide a desired car insurance policy that perfectly fits in your budget. Then, shortlist a few insurers after you’re done with your research, keeping in mind the insurance company’s reputation, claim settlement ratio, etc. You might need to raise a claim in the future so it is important that you have proper information about the insurance company’s claim settlement history.
Before buying an insurance policy, make sure you compare various policies online. Once you have enough information to choose the best car insurance deal, you’re good to go. The insurance company’s website should have a car insurance premium calculator with which you can calculate the premium online.
Remember, it might be mandatory to have a basic third-party liability policy; however, it is prudent to have one that protects your vehicle appropriately.