Wilda Laci June 29, 2018

Cars are an integral part of our lives. It is one of the most common modes of transport available today. Due to its importance, the government has stringent laws in place to ensure your safety while on the road. One such law is that every automobile should mandatorily have an at-least valid third-party insurance. A car insurance might seem like an unnecessary investment initially, but it will prove its worth when you need it the most.

There are chances that you purchased the insurance suggested by the salesman at the showroom without doing a thorough research. There are many aspects to a car insurance in India that can be understood only after conducting an extensive research. Given that there is a plethora of insurance companies present in India, they offer various features and inclusions. You can do a thorough comparison between the different insurance policies and purchase the one that fulfils all your requirements on Coverfox.com.

Do Not Miss This about Car Insurance

All the information you need about a car insurance is available online. Yet, you might miss a few vital points about the insurance policy. Ensure that you check for the following points clearly when you’re purchasing a car insurance this year:

1) IDV (Insured Declared Value)

The current market value of the car is calculated by the insurance company when you’re purchasing the insurance. Ensure that the insurance company doesn’t reduce the IDV to lower your insurance premiums.

2) Garage Network

Cashless repairs are offered by most insurance companies at the garages in their network. If the insurance company has a large network of garages, you need not worry about mechanical troubles on long journeys.

3) Personal Accident Cover

Ensure that you do not opt for this option if you already have a health insurance. Most insurance companies offer a personal accident cover up to INR 1 lakh for a nominal amount that is included in the insurance premium.

4) Claim – Incurred Ratio

Most of the insurance companies claim to provide a quick settlement once a claim is filed. But, their annual claim-incurred ratio is often low and doesn’t reflect this claim. Ensure that you check for this factor while purchasing the insurance. It is beneficial to select a company with a high claim to incurred ratio so that you receive your settlement at a faster rate.

5) Inclusions

You might assume that a few factors are present by default in the insurance policy. This is not the case in many situations. Hence, read the offer document carefully for the inclusions mentioned.

6) No Claim Bonus (NCB)

NCB is the benefit you receive if you don’t file a claim in the previous insured year or consecutive years. The benefit will either be a discount of 20% to 50% on the next insurance premium or an increase in coverage.

How Can Getting a Car Insurance Save You Money

1) Damages

When you meet with an accident, you sustain injuries and your car is damaged as well. You might have to use your savings to pay for the garage bills as well as the hospital bills. If you have an insurance, the insurance company would have paid for all the damages caused to your car and paid for the medical expenses as well.

2) Third Party Liability

As per the law, you are liable to pay for the damages caused to the third party and his property during an accident. With a valid car insurance in 2018, you need not worry about these expenses as the insurance company will take care of it. The legal issues pertaining to the accident will also be covered by the insurance company.

3) Fines

It is mandatory in India to have a valid car insurance. Hence, if you do not have one for your car, the cops can fine you during a routine check. You can save a significant amount of money by purchasing a car insurance.

Long-term Financial Safety

One of the primary reasons car owners like you might refuse to purchase a car insurance is that you may feel that it is a waste of money and an unnecessary investment while purchasing a car. A good car insurance is primarily a long-term investment that will come in handy when there is a mishap. At that time, you need not rely on anybody for financial assistance as the insurance company will cover the medical as well as the repair expenses. Along with purchasing safety accessories for the car, it is wise to purchase an insurance as well.