It’s that time of year when people try to achieve those long-awaited goals. When it comes to buying a car, it can be an exciting and equally daunting experience with all the research, planning and saving upfront. In order to protect the newly purchased car, car insurance is also essential. It not only ensures the comprehensive protection of the vehicle from undesirable events, but also ensures absolute safety. However, while insurance awareness and acceptance has peaked in the face of compulsory vehicle liability insurance in India, people often view the purchase as just a formality and rarely pay attention to the numerous features that could be availed at the time of purchase selection a policy.
Insurance isn’t just about lower premiums, it’s also about choosing the right features and benefits, and choosing a direct insurer that can make claims settlement simple and straightforward. If buying a car is also on your wish list, don’t forget to tick these five points for the right car policy:
Understand the need for insurance
Owning a car in India is still considered a luxury and individuals place the utmost importance on protecting and maintaining it. Given the road conditions, traffic hazards, and road rage that often results from accidents, it’s only wise to insure your vehicle with the right plan. Also, the Indian Motor Vehicles Act and Indian Road Safety Act require all car owners to have their own one year property damage insurance and three year liability insurance, which can result in a hefty fine. Auto damage insurance serves as a shield against costs incurred if the car is damaged in an accident, natural disasters, man-made disasters, fire, etc.
Therefore, when choosing the right coverage, it is crucial to compare different policies and understand the key features. A quick search online will reveal a variety of insurers with extensive coverage for injury, breakdown and death.
Listen to the dealer, but do your homework
It is an age old norm in India that car dealers sell insurance along with the car. Insurance costs are sometimes added to the total price of the car, or customers are tricked into believing that this is how the system works.
Fortunately, this is a myth and there is no law in the country that requires you to purchase insurance from the dealer. In today’s digital age, there are a large number of insurers who often offer comprehensive insurance cover with the appropriate supplements, depending on requirements. Buying direct from an insurer ensures the policyholder is not paying for unnecessary principles in coverage and guarantees savings of up to 20% on premium costs. Also, new age insurers operate with a digital-first approach and as such there is no paperwork and the end-to-end process is hassle-free.
Find out about the claims settlement relationship
The claims processing rate is an important benchmark for measuring the trustworthiness of an insurance company. It helps to understand the likelihood of the insurer recovering the loss and to track the insurer’s past performance. The Insurance Regulatory and Development Authority publishes data on the claims settlement rate of insurance companies. This ratio can be used to determine the entity’s dispute resolution capability.
Check the Insured Declared Value (IDV)
Declared Insured Value (IDV) is the amount that the insurer will pay in the event of vehicle theft or serious irreparable damage to the vehicle. The IDV must not be confused with the market value of the automobile; it’s just the maximum the insurance company will pay given any uncertainties. The IDV is declared by the owner of the asset to the insurance company. Therefore, it directly affects the premium to be paid – the higher the IDV, the higher the premium.
claims settlement process
The most important aspect of insurance is the fact that it guarantees support in difficult times. One can rest assured that the damage will be covered by the insurer and the experience will be hassle-free and comfortable. Modern insurers use technology to stay in touch with customers at every stage of the claims process, ensuring that no time and energy is wasted in the process. Insurtechs today are relying heavily on technology to fill the gaps customers face in regulating their claims.
To top it off
Buying a car is always a special moment and getting car insurance should be given the same importance as the vehicle. Therefore, before making a purchasing decision, it is imperative to understand the need for auto insurance and other features associated with the policy to ensure the best purchasing decision.
This article was written by Mayank Gupta, Vice President – Auto Insurance, ACKO. All views are personal.
