You must have often heard people talking about car insurance! Gone are the days when people only worry about their health, and thus, health insurance is the only product that they buy in the insurance market. Nowadays, individuals have become materialistic and they make sure that all their belongings are safely insured.

What is Car Insurance?

Car insurance also known as auto or motor insurance is a contract between the car owner and the insurance company, implemented to protect the vehicle from unexpected risks. It protects you against financial loss in the event of accident, damage or theft, which may occur at any point of time.

The Car insurance covers the insured party, the insured vehicle and third parties that are the car and people.

One can buy car insurance by paying the premium amount. When you pay a fixed amount of premium, the insurance company essentially agrees to pay your losses as given in your policy. There are multiple types of car insurance policies. Thus, make sure you choose the one that fits to your requirements in the best manner.

The premium of the insurance is affected by several parameters like value of the car, vehicle classification, type of coverage, voluntary excess and many more factors.

Car insurance in India is mandatory while owning a vehicle as per the law. If the owner of the car does not poses one they may be fined heavily.

You can either opt for buying the policy offline or online. There are various ways to buy insurance policies online. Many people prefer the latter option as it saves you from visiting the insurance agent time and again, and all your work gets done from home itself. Thus, buy car insurance online and enjoy 100 percent safety!

Buying car insurance in India is a one-time task. Therefore, you should buy the policy keeping few important factors in mind.

Things one should keep in mind while buying car insurance are mentioned below. Just have a look!

1: Know what your policy covers:

One should always read the policy documentations carefully.

There are various types of car insurance policies, each of which covers specified plan regarding cause of damage, types of damage, parts insured etc.

The insurance company will only provide support as per the selected plan by the insured on the insurance contract.

If the financial loss occurs from any other reason than the specified reason on the contract the insurance company will not provide the financial assistance.

Similarly parts of car can also be insured according to the policy one chooses.

One must know about the policy in detail and should have a complete knowledge of the areas that the policy covers.

Do not make a decision in hurry as it can cost you really high later on. If need arises, you can take help either from any of your family member or a professional insurance agent. If you decide to buy car insurance online, you can take the support of online help services regarding the same.

2: Always compare different policies online before buying:

This is one of the most crucial factors one should consider while buying insurance policy.

This is so because there are various numbers of companies providing different types of polices. Each of the car insurance companies in India has their own price and coverage offer.

One should first compare among these companies and their policies online with respect to premium amount and other factors, and accordingly after choosing the best option the final move should be made.

Nowadays there are various sites and applications which help to choose and compare the policies one needs. Some of them are Policy bazaar.com, easypolicy.com etc.

Comparing the policies will not take much time. It is a hassle-free job that just requires full concentration and knowledge regarding the insurance market. Before you start to compare the insurance policies make a list of your priorities and be well aware about the monetary constraints that you face. This will help you do this work in a much better manner!

3: Third party insurance is mandatory:

Third party insurance refers to the insurance policy in which the first party is the insured, the second party is the insurance company and the third party is the person who is affected by the damage.

The third party is anyone who is neither insurer nor the insured.

This policy will cover claims for damage caused to the third party including serious injury or death.

But the first party is responsible for its own damages or losses whether caused by itself or the third party.

Buying a third party car insurance gives you a cover against any sort of legal liability caused to a third party when you are at fault. It covers any injury or damage created by the insured, to another person or property.

A third-party liability policy is made mandatory in India under the Motor Vehicles Act, 1988.

It is important for a person to buy the same at the time of purchase of new vehicle. It is typically provided by the dealer at the time of purchase and the premium cost is added to that of the car.

4: Opt for comprehensive cover policy:

A comprehensive cover is an optional coverage that protects your car from damage due to land slide, fire etc.

But it does not cover the damage caused due to collision and theft.

This type of policy may be very helpful as the above mentioned factors can arise at anytime and can give additional financial load of repair to the owner of the car.

Thus, one can gain double security by adding the comprehensive cover to his policy, which is much needed in a country like India.

5: Add-on and Cashless facilities:

While buying insurance one should also focus on Add-on facilities. These facilities act as additional benefits while buying insurance. People can avail them by just paying some extra amount of money as premium. Add –on facilities may include, zero depreciation, hydro static cover etc.

One must also choose a company which provides cashless facilities. You can save yourself from the task of regular e-mails, unnecessary paper work etc. Everything will be done in a digital manner and will save your efforts to a great extent. Also, cashless facilities make sure that no mistake is made on your part while calculating premiums or forgetting to pay the premium amounts.

Another benefit of having cashless insurance is that one can make the repairs done without paying in cash on the garages linked with the company. 

6: Claim and settlement along with customer service and support:

Imagine a situation. You have bought a car insurance policy online from XYZ Company. The contract is going well between both the parties from more than a year. All of a sudden, the company introduces a new clause in the agreement, which you are not comfortable with. In such a situation you would obviously like to get in touch with the insurer as soon as possible, right? What if the customer support service of XYZ Company is very poor and you are not able to contact them from any other source?

To avoid such mess it is very important that there is good communication between both the parties. A well organized customer service support is mandatory. Make sure your company provides this facility. Because, if not, you will really end yourself in trouble!  

There are various other factors that affect your decision of buying car insurance in India. In a country like India, where the condition of the roads is not good, the traffic is always unbearable; having car insurance is a good decision.

Majority of the population in this country belongs to the middle class. And, having a car for a middle class family is not less than a luxury. They cannot afford to make this investment time and again. Therefore, it is advisable to buy a car insurance which serves all their needs in the best manner.

Statistics show that people prefer to choose a policy that calls for low premium payments. And for this, they compromise on certain things which are really important. This practice should be avoided. Your priorities should be coverage offer; add-on facilities etc. and then the premium payments should be considered. It is obvious that one cannot buy a policy that does not fit in his or her budget at all, but compromising a bit here and there, and buying a policy which asks for a small extra amount should not be avoided.

Go through a thorough research before deciding anything. Consult all your family members who may get affected by this decision of yours! Take online or offline help if necessary and choose the best for yourself.

If you not yet insured your vehicle, do it right away! You never know what may happen the next day! So just stop delaying and saving money. Put it to use and enjoy the benefits!

All the Best!

Published by Peter Garlow