The entire family gets excited when buying a new car in Indian culture. It signals a great deal of joy, success, and the start of the family road trips you’ve been planning in your brand-new car. People frequently overlook the fact that purchasing a new car is a significant liability rather than just a fun experience.
If you think about it carefully, owning a car or purchasing a new one is a big responsibility because we have to make sure that we don’t hit anyone while driving. If we do, we should be properly insured for both our car and the third party to guarantee compensation.
Under the Motor Vehicle Act, third-party liability insurance is not only required by law, it is also our responsibility to have it. There are many insurance companies on the market that offer various types of auto insurance policies, but we should think about which one is best for us. Before choosing which policy to purchase, we must compare different types of auto insurance. Regarding which, the following are a few considerations:
List your requirements in short order: It’s critical to decide what you need from a car insurance policy before you purchase one. Simply make a list of the types of coverage, such as TPL, IDV, add-ons, and so forth, that you are looking for in a policy.
Comparison of coverage: After you’ve narrowed down your list of requirements, compare the policies online. Furthermore, a third-Party liability policy offers a different kind of coverage than a comprehensive policy. Liability insurance only provides coverage for harm done to a third party; comprehensive insurance provides full coverage for personal injury, vehicle damage, and theft as well. Therefore, it is wise to compare car insurance policies in-depth before purchasing.
IDV (insured declared value) comparison: The premium rates are based on the IDV (insured declared value) of the car, which represents the current value of your car following a predetermined depreciation. The IDV of a car is influenced by the age of the car; the older the car, the higher the premium.
Premium: The cost of the insurance policy, which you must pay to the insurer, is another important consideration when selecting the best auto insurance plan. You might discover that some car insurance plans are priced very affordably, but a low premium does not necessarily indicate a better plan. Before making a final decision, you should compare the policy’s features and advantages. You should choose the same if getting better coverage at a higher price is truly worth it to you. Remember that the cost of auto insurance is always influenced by a number of variables, including model, age, vehicle type, capacity, fuel type, etc.
Compare the insurer’s CSR before choosing one. Whenever you plan to purchase an auto insurance policy, compare the CSR of the prospective insurers. You ought to buy a policy from a provider whose claim settlement ratio (CSR) is high. Avoid buying a policy from a provider with a low ratio of claims settled. The IRDA website makes a detailed report about claim settlement ratio available every year.