How to Choose Best Plan for Your Car?
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| How to Choose Best Plan for Your Car |
Buying a new car excites the entire family in Indian culture.This means lots of happiness, fruit and the start of the tour that you are planning with your family in your new car. In the excitement of a new car, people usually ignore the fact that buying a new car is not only fun, but also a big responsibility.
If you analyze carefully, you will find that having a car or buying a new car is a big responsibility, because we have to make sure that we do not hit anyone while driving. If we do, we should have adequate insurance coverage for our car as well as third parties to ensure compensation.
It is not only our responsibility to insure the car but also to have third party liability insurance under the Motor Vehicles Act. There are many insurance providers available in the market that offer different types of car insurance policies, but we should consider the best suitable plan for ourselves. In order to buy the right car insurance, we must compare it before deciding which policy to buy. Here are some things to keep in mind:
Choose your requirements: Before buying a car insurance, it is very important that you first decide what you need in your car insurance policy. Make a list of the types of coverage you are looking for in policies like TPL, IDV, add-ons, etc.
Coverage Comparison:
Once you're done with a short list of your requirements, compare policies online. Furthermore, the type of coverage offered under third party liability differs from the broader policy. Liability only covers any third party damages and damages, where comprehensive policy gives you full coverage including 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 car's IDV (Insured Declared Value) which means the current value of your car after a set of depreciation. The IDV of a car depends on the age of your car, the older the car, the higher the premium.
Premium:
Another important factor in choosing the right car insurance policy is the premium of the policy that you have to pay to the insurer. You may find that some car insurance policies are available at very competitive rates, but low premiums do not mean that it is a good policy. The features and benefits of your policy should be compared before making a final decision. If you get better coverage by paying some extra price and it is really valuable to you, then this is what you should choose. Keep in mind that car insurance premiums are always determined by multiple factors such as model, age, type of vehicle, capacity, type of fuel, etc.
Compare Insurer's CSR: Always compare the CSR of the insurance company from which you are planning to purchase a policy for your car. You should purchase a policy from a provider that has a good (CSR) claim settlement ratio. Don't buy a policy from a company with low claim settlement ratios. Each year, the IRDA publishes a detailed report on the claims settlement ratio, which you can easily find on the IRDA website.
