Once you get insurance cover for your car, the benefits you reap make it worth the effort and cost. Imagine a situation where you get into an altercation on the road where you have scratched a person’s car while driving yours. If you do not carry a valid insurance cover, you will be held liable to settle the repair costs. In the same situation, if you carry valid car insurance, the liability to settle the damage falls on the insurance provider. Some of these expenses can be heavy on your pocket, so it is always advisable to get your car insured. Besides, the Indian government has made it mandatory for all car owners to have basic car insurance for their cars.
Choosing a new car insurance policy can be a daunting process. There are so many companies and features to choose from and one is bound to get confused. You can avail of the services of an agent or make use of online portals. But there are few things that you need to know and keep in mind before you sign the deal. We have compiled this list for you below!
Things to know before getting a new car insurance policy
1. Terms used in the policy
Policy papers are filled with technical words that you may not understand at first. But you must understand all the terms used before buying the policy as words carry important meanings. Your claim can get rejected if you have misunderstood some terms and that could turn into a stressful situation during the moment of need.
2. Your requirements and needs
Policies are highly customizable so you need to assess and understand the level of risk you face. Based on this level of risk you can choose various add-on features that give you extra protection in case you are exposed to high risk or you can choose a basic plan if you have low risks.
3. Deductibles and Add-ons
A voluntary deductible is a certain amount that you agree to pay out of the total amount whenever a claim is filed. You need to assess your capacity to bear the amount before you quote the deductible amount. Various add-ons are available that enhance your policy and give you overall protection. You can pick and choose the add-ons based on your requirements.
4. Transferability of the policy
There might be some instances where you would want to transfer the policy from your name to someone else or from one car to the other. You should make sure that there is a provision for you to do that in your preferred policy before you sign the papers.
5. Claim filing process
This is one of the most important points that you need to check. You should look at the insurance company’s claim settlement ratio and how easy it is to file a claim if necessary. You should check if there is an online portal you can use and if a cashless claim facility is available.
These are the 5 main points you need to keep in mind before you get a new car insurance policy or if you are buying it for the first time. At the end of the day, you need to undertake complete research so that you make the best choice and get your money’s worth. To know more about car insurance- click here!