In India, obtaining car insurance is a legal requirement for driving. It not only covers damages to your vehicle but also provides compensation for injuries or damages to others in the event of an accident. However, selecting the right insurance policy requires careful consideration. Here’s what you should keep in mind to make an informed decision
Taking a car insurance policy is legally mandatory for driving on Indian roads. It not only compensates for the damage to your car but also to other people in case of an accident. But, it is very important to keep some things in mind before buying an insurance policy. Let us know what things should be kept in mind while taking car insurance.
There are many companies in the market that offer insurance policies. You get features according to the price. In such a situation, choose the right one for yourself. Insurance Policy Choosing a policy can be a bit risky. When you buy a new car or bike, the dealership also helps you in choosing a good policy. But sometimes the cost of these policies becomes very high.
1. Types of Insurance Policies
- Third-Party Insurance: This is the most basic form of insurance, covering damages caused to other people or property in an accident. It does not cover damages to your own vehicle.
- Comprehensive Insurance: In addition to third-party coverage, this policy also includes protection against damage to your own vehicle due to theft, fire, natural disasters, and accidents.
- Add-On Covers: Enhance your policy with optional add-ons such as engine protection, roadside assistance, and zero depreciation coverage.
2. Insurance Policy Coverage
When choosing an insurance policy, be sure to evaluate the following:
- Insured Declared Value (IDV): This is the maximum amount you will receive if your car is completely destroyed or stolen. Ensure that the IDV is at least equal to the market value of your car to adequately cover potential losses.
- Claim Settlement Ratio (CSR): Check the insurer’s CSR, which indicates the percentage of claims settled out of the total claims received. A higher CSR reflects a more reliable insurer. Additionally, understand the process for filing and receiving claims.
3. Cost vs. Coverage
There are many insurance companies offering a variety of policies with different features and price points. While it may be tempting to go for a lower-cost option, ensure that it meets your coverage needs. Sometimes, dealership-recommended policies can be more expensive, so it’s beneficial to compare options yourself to find a policy that offers the best value for your money.
4. Read the Fine Print
Always take the time to read and understand the terms and conditions of the insurance policy. This includes exclusions, coverage limits, and the claims process. Signing the policy without a thorough review could lead to unexpected issues later on.
