Things to Keep in Mind Before You Buy Car Insurance

Things to keep in mind before you buy car insurance

At a time when there are thousands of new cars hitting the roads each day, there is bound to be a lot of traffic and that could possibly lead to serious accidents. You may be at the receiving end if your loved car does not have the insurance cover. So it is necessary to insure your car so that you can indemnify from the losses caused owing to accidents, theft or or any other damage to the vehicle. Typically, car insurance is categorized into two types, namely comprehensive insurance and third party insurance. Comprehensive insurance is a type of cover wherein the car is insured against any risk resulting resulting from damage or theft, driver’s death and passengers in the vehicle during the time of accident. Cars damaged during natural calamities like earthquake, typhoons, floods, as well as other circumstances such as strikes, riots, thefts are insured under this type of insurance. Third party insurance offers cover for the damage inflicted to other vehicle by your car only and not the theft, accidents or damage to your vehicle. Coverage under this type of insurance includes permanent injury/death of a person, damage caused to the property, etc. But simply knowing the types of insurance will not help your case as you need to be aware of several things before buying car insurance. Some of the essentials that you must take stock of are mentioned in the points below.

Claim Settlement-Top Priority

Before buying a car insurance policy, the immediate focus should be to check the claim settlement ratio of the insurer. Take car insurance of the company that has an excellent track record of claim settlement. Also see how quickly they have settled claims. You can visit the website of Insurance Regulatory Development Authority of India (IRDAI) to know everything about claim settlement. If at all the company, from where you want to buy an insurance, is found to be poor at the time of claim settlement, then you can avoid the situation of non-settlement of insurance claims if you glance at the settlement chart carefully. There is a growing possibility of your claim getting rejected despite you paying premiums on time. In order to avoid such circumstances, you must use the Internet to get public reviews and experiences on claim settlement before you take a call on car insurance.

People Also Look For  Private vs PSU Banks: Where you can get car loan at low interest rates

Extensive Research & Analysis on Premiums

Try to compare the premiums of several companies and the extent of insurance coverage both online and offline by getting in touch with people who have opted the policy of car insurers. Insurance companies want you to pay certain deductibles before they reimburse the remaining balance to you. You must check the proportion of deductible and if it is found lower, then it is good and won’t pinch your pocket much.

Cashless Claims You should Go for

Car insurance also provides cashless claims that you find in mediclaim policy. So pick the insurer that offers the same as it will be of a great help at the times of emergencies because then you won’t have to arrange cash for the car repairs. This work will be taken care of by your car insurance company. So it is a vital factor to consider while taking car insurance. You can avail the benefit of cashless claims by repairing the cars at network garages of the insurer in certain eventualities like accident, theft or any other damages covered under the policy.

Extensive Research on Network Garages Beforehand

It is necessary that you know about the network garages in advance so if any of them is near to your residence or office, you can then repair the car easily and quickly. Also keep an eye on the public feedback pertaining to these garages so that you can get an  idea of their services.

Faster issuance and coverage

You must check for the faster issuance and coverage of the policy while buying car insurance from the company. Earlier, it used to take around a month for the whole thing to complete. But now-a-days, everything is happening instantly. So pick the insurer that fits the bill in this regard.

People Also Look For  Frequently Asked Questions for Car Loan


Insurance companies, in a bid to lure customers, offer additional services like round-the-clock road assist, towing services and others. These services are good in the times of emergencies. But sometimes the premium amount can enhance with these add-on features. And if you are sticking to a budget, then you see your affordability and take a call on such features.

Leave a Reply

Your email address will not be published. Required fields are marked *

Personal Loan Interest Rates February 2024
HDFC Bank10.75% - 14.50%
ICICI Bank10.75% - 19.00%
IndusInd Bank10.25% - 26.00%
Kotak Bank10.99%
RBL14.00% - 23.00%
SMFG India Credit12.00% - 24.00%
Standard Chartered Bank11.49%
Tata Capital10.50% - 24.00%
Home Loan Interest Rates February 2024
Axis Bank8.75% - 9.15%
Bank of Baroda8.50% - 10.60%
Citibank8.75% - 9.15%
HDFC8.50% - 9.40%
ICICI Bank9.00% - 9.85%
Indiabulls Housing Finance Limited8.65%
Kotak Bank8.70%
LIC Housing8.50% - 10.50%
Piramal Capital & Housing Finance10.50%
PNB Housing Finance8.50% - 10.95%
Reliance Home Finance8.75% - 14.00%
State Bank of India/SBI9.10% - 9.65%
Tata Capital8.95% - 12.00%