Purchasing an adequate car insurance policy is not just a legal requirement but can secure your car too. Car insurance policies are designed to assist policyholders during unfortunate events.
If you’re planning to purchase a car insurance policy for your vehicle, ensure that you get the most optimal plan. You can compare plans online before choosing one. Many insurers have their official websites where you can compare and purchase a suitable plan.
For instance, a TATA AIG new car insurance plan can be purchased conveniently by visiting their website. Many insurers also offer the feature of online renewal of car insurance.
While purchasing insurance for your car in India has become very easy, you should know a few things before purchasing a car insurance policy or if you’re already a policyholder. It will help you get the most out of your policy.
Things to Remember for a Car Insurance Holder
- Your car’s model and company play a role in your car insurance.
A high-end model will require higher insurance compared to a standard model. This is because repairing a high-end car is quite expensive.
- You can lower your car insurance premium.
By adding anti-theft devices and setting the correct IDV, you can lower the premium amount on your vehicle.
- Your insurance claim history will affect your insurance premiums.
If your insurer notices multiple claims in your history, the company may increase the premium.
- Your negligence can cause claim rejection.
If your car is damaged because of your negligence, then the insurance company will not accept the claim.
- You can save by handling small expenses on your own.
If the damage to your car is quite minimal, paying for it out of your pocket may give you the No-Claim Bonus discount on renewal.
- Car insurance claims are of two types.
Claims can be reimbursement or cashless. The two types differ based on where your car is repaired. If the car is repaired in a network garage, you can file a cashless claim. If you get the car repaired at a garage that is not under your insurer, it will be a reimbursement claim. In a reimbursement claim, you will get the actual amount you paid for the repair.
- You can receive the purchase cost of your car if it’s stolen.
With the Return to Invoice add on, you can get the full purchase amount of your car if it is damaged beyond repair or stolen.
- Upgraded cars lead to higher premiums.
Adding modifications to your car may increase the car’s value. However, car insurance plans cover only the accessories provided by the manufacturer.
- Getting your car fixed without your insurer’s knowledge can lead to claim rejection.
The insurer will need to understand the damage before accepting the claim. You should inform the insurer of the damage within the time specified in the policy. If you don’t inform and get the car repaired, your claim will be rejected.
- Cashless claims aren’t always 100% cashless.
Cashless claims are called so because you won’t have to pay for the repairs bill. However, you will have to bear for the deductibles. The two deductibles are the compulsory deductibles and the voluntary deductibles. Compulsory deductibles are small amounts you have to pay out of the total repairs on your car.
- You may lose your NCB if you don’t renew your plan on time.
The no-claim bonus (NCB) is a reward for not filing a claim during the policy period. This bonus lowers your premium amount on renewal of the policy. However, your efforts of driving carefully will be wasted if you fail to renew your plan on time. If you don’t renew the policy in time, you lose not only the coverage but also the NCB.
- You can choose a new insurer without losing the accumulated NCB.
The NCB is a reward for responsible ownership. It is not connected to your policy or insurer. You can continue to get the benefit even if you move to a different insurer. You would need a transfer letter from your old insurer and submit it with your application to your new insurer.
- A high IDV leads to a hike in the insurance premium.
The insured declared value (IDV) of your vehicle depends on how you value your car when purchasing the policy. If you set a low value, the premium is also low. So the amount you receive under the claim is insufficient if your car gets stolen or damaged beyond repair. If you set a high value, your premium is high. Therefore, you must always declare the correct IDV based on the car’s current market value.
- 14. Carrying all the required documents while driving facilitates smooth claim settlement.
When you drive a car on the road, make sure to carry all the valid documents. Besides during routine checks, these documents should be available in the vehicle at the time of accident or any incident. Your claim may be rejected if the vehicle did not have the documents.
- A good claim settlement ratio is not the only thing you should look at.
The claim settlement ratio of the insurer is not the only decisive factor to purchase a policy. A low claim settlement ratio may not always reveal the correct picture. Several reasons contribute to a low ratio. For instance, the insurer could have rejected several fraudulent claims.
Thus, car insurance policies are one of the best ways to protect your vehicles from unfortunate events. However, if you’re a policyholder or plan to purchase an insurance plan, you must conduct a good amount of research about car insurance in India. Learning about the intricacies of car insurance policies will help you in a smooth settlement.
Some Frequently Asked Questions
What should I keep in mind when purchasing car insurance?
Some of these factors are the IDV of your vehicle, your insurance requirements, the add-ons you wish to include in your plan and a suitable insurance company for your vehicle.
What do I need to know about car insurance?
Before you purchase your car insurance policy you should consider the amount of coverage you want, the add-ons you wish to include in your policy and your insurance company’s performance. You should be aware of the claim settlement process and the deductibles on your policy.
What can reduce car insurance?
If you wish to reduce the car insurance amount, you must research online and compare the different plans available in the market. Along with this, maintaining a good credit record can also help you lower the premium amount. You can also take advantage of the NCB discount during your renewal to lower the premium amount.