Car Insurance Tips: Things To Keep In Mind Before Buying Insurance Policy; Check List

Getting car insurance is crucial today, especially with rising prices in the auto industry. In India, it's a legal requirement under the Motor Vehicles Act 1988 to have at least third-party liability insurance for your car. Many insurance companies offer different policies with various features and prices, making it a bit confusing to choose. While buying a new or used car, dealerships may offer to help you find insurance, but they might charge extra. So, it's better to do your own research when buying insurance for your car. Here are some simple steps to follow before getting car insurance.

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Define Your Needs

In India, there are two main types of car insurance: third-party and comprehensive. Third-party insurance is required by law and covers damages caused by others. On the other hand, comprehensive insurance not only includes damages caused by others but also covers damage to your own car and theft. It's important to choose the insurance that meets your needs and fits your budget.

Compare Plans 

There are many different types of insurance plans available, both in the market as well as online. Take your time to look into and compare various insurance plans carefully to find the one that fits your needs the best.

Check Add-Ons

Add-ons are extra services offered by insurance companies. You have to pay more to get additional premium services. These extras are usually found in comprehensive plans and are mainly for covering damages to your own car. Make sure to see if these match what you're looking for.

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Terms and Conditions 

Be sure to read and understand the terms and conditions of your insurance policy. Also, know about the no-claim bonus (NCB) rule. It gives you discounts on your premium payment if you haven't made any claims in the past years.

Check Claim Settlement Ratio (CSR)

Before you pick your insurance plan, always check the insurer's Claim Settlement Ratio (CSR). The CSR tells you how many claims the insurance company has settled compared to the total number of claims they received in a year. Also, figure out how to file a claim with the insurers you're considering to buy the insurance from.