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Select the Right Car Insurance Coverage with This 7-Step Guide

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When it comes to buying car insurance plans, there are myriad alternatives to choose from. Different plans are designed to cater to varying needs of buyers. Among this plethora of choices, selecting a suitable policy can get tricky. You need to know exactly what you require, and which policy checks all your requirements to the point. That is when your expectations about car insurance will be met. This article elaborates on selecting the right car insurance policy with the help of this seven-step guide. Let’s have a look –

  • Gauge your requirements

The starting point in selecting the car insurance is to know what your needs are. Before you start shortlisting policies based on features, you need to be clear of what are your requirements. There are two types of policies that are available – third-party plan or a comprehensive policy. Third-party plans are the bare minimum required by the law and provide coverage for third-party legal liabilities that may become payable. On the contrary to compensate for limited coverage of third-party policies, a comprehensive plan provides own-damage cover along with third-party coverage thereby providing an all-round insurance cover. Knowing which of the two checks all your requirements will help you make a smarter choice of policy.

  • Comparison is the key

The next step in selecting a suitable policy is to compare before your buy. Just like you compare any commodity before you purchase, same goes for car insurance too. This helps to differentiate how each policy is better or similar to each other. When comparing, make sure it is not solely based on price, but instead also consider the inclusions, exclusions, policy clauses, and other features. A car insurance premium calculator is a handy tool that can aid the comparison process helping you select the right policy.

  • Check for add-ons

Add-ons are optional policy features that are available to buy when you purchase a comprehensive policy. With these add-ons, the policy coverage enhances significantly thereby lowering the risk for your car. While there are various add-ons that are available, not all of them might be useful. For instance, you reside in a flood prone region. At such time an engine protection cover might be convenient since water ingression can severely damage your car’s engine. When selecting add-ons, do keep in mind that they increase your insurance premiums.

  • Enquire about the claim process

Before you finalise the insurance plan, know of the claim process since it not only helps to be aware of the necessary steps that need to be taken, but also help you take quick action. It also can help to uncomplicate things for you at the time of claim.

  • Know your insurer’s claim settlement ratio

Not all who buy car insurance are aware of their insurer’s claim settlement ratio (CSR). It is paramount to keep this in mind since indicates the probability of your claim being settled as compared to the total claims received by the insurance company.

  • Do not provide false information

It is crucial to note that false information provided to your insurer can lead to claim rejection. This can be either about your personal details, or even any vehicle details like modification. So be honest and mention all facts true and correct to the best of your knowledge when buying one.

  • Know the policy terms and conditions thoroughly

Having complete information about the policy terms helps you select a policy only if the terms are favourable for you. This step helps avoid legal hassle at the time of filing a claim.

These are some of the points that make buying a comprehensive or third party car insurance online easy. Following these tips can help you make selecting a policy simple and convenient. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.

Pax Heber
the authorPax Heber