How to choose the best car insurance policy in India

Insurance companies in India offer a plethora of auto insurance plans that meet the specific needs of buyers, but choosing the right policy can be difficult. In India, insurance companies offer different plans with different features, and these plans come at different price points. It is therefore important that you do your research well before choosing the right insurance policy that best suits your needs. Here are some tips that should help you:

Know your needs

Before you start looking for the
best auto insurance
and the best insurance company, assess your needs and know the type of policy you want. In India, there are two types of auto insurance policies: liability insurance and comprehensive insurance.

Third party insurance is a legal obligation. It only covers damage caused to third parties. Under liability insurance, you do not get any compensation for damage to your car.

comprehensive auto insurance policy, on the other hand, covers both civil liability and damage to your car.

So if you are looking for a basic plan with an affordable premium, a liability plan would be an ideal choice. But, if you are driving a luxury car, it is better to purchase comprehensive coverage as it will help reduce financial liability in the event of an accident.

Compare packages

Once you are sure what type of auto insurance policy you need, it is recommended that you compare the plans of different insurance companies before making the decision to purchase. You should compare plans in terms of sum insured, policy inclusions and exclusions, type of options offered, claims process, deductibles, etc. Choose a plan that is profitable for the premium you pay.

Learn about add-ons

Add-ons or endorsements are additional coverage options that you can purchase at an additional premium. Riders expand the scope of the policy and provide coverage for specific damages that are not included in your regular plan. You should check with the insurer about the options available and choose the one that best suits your needs. However, you should be aware that the add-ons are only available for multi-risk policyholders.

Check the complaints process

One of the main goals of purchasing an auto insurance policy is to get immediate financial assistance in the event of an accident. It is therefore essential that you choose an insurance that offers a simple and fast claims process. The last thing you would want in an emergency is to go through a complicated procedure to get compensation for the losses.

Know the insurer’s claims settlement ratio

Few auto insurance buyers understand the importance of the Loss Settlement Ratio (ESR). You should check the claims settlement ratio before finalizing the insurer. The CSR indicates the number of claims that the insurer has successfully settled compared to the number of claims it has received in a year. It’s best to buy a policy from a company with a high CSR rating, as that would mean you have a better chance of getting your claim approved.

Never provide false information

Many first-time car insurance buyers tend to provide incorrect information about their age and driving history in order to reduce the premium amount. But such practices can prove to be a costly mistake when filing a claim. If the insurer finds the information to be misleading, your insurance will be canceled. It is therefore advisable to be honest and provide specific details in the application form.

Be aware of the terms and conditions of the policy

Last but not the least, before signing the policy documents, you should take the time to carefully read the terms and conditions and check whether the terms are favorable and meet your needs. This is a critical step to avoid any legal hassle when filing a claim.

Last word

Buying an auto insurance policy is not as difficult as it sounds. Following the tips mentioned above can go a long way in helping you choose the right plan.

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Justin D. O'Neill