How to Get the Best Car Insurance Deal?
Almost 15 years ago buying the four wheeled machine was a dream out of reach for most Indians. Thanks to the competition in the market and the globalisation of Indian consumer market, buying a car is longer a privilege of the rich people. With Tata introducing the “aam admi’s” Nano, cars have eaten into the two wheeler market. This has indirectly given rise to competition in car insurance market too; before you opt for car insurance prudence advices you to check the various auto insurance policies available in the market.
Importance of Car Insurance:
Before we look at the various policies in the market and give you a comparative analysis of a few of the best ones let us first understand the importance of having car insurance. As I have already highlighted, the number of cars have increased significantly leading to heavy traffic on the roads. Each dent on your car can eat heavily into your savings. In case of car theft too, car insurance comes handy as the insurance company pays the current value of the car. Therefore, having car insurance becomes most important when you buy a car. It covers for the mistakes committed by other drivers on the road too. This is known as the third party legal liability protection.
The plethora of policies available in the market may confuse a newbie buying his first car. Read the article below to get a fair insight into choosing the best insurance deal for your car.
Insurance Policies Available in the Market:
1. ICICI Lombard
2. HDFC ERGO Private Car Insurance Package Policy
3. Tata AIG private car insurance
Features and Advantages of a Few Policies in the Market:
The ICICI Lombard has the following advantages:
1. It offers servicing at 2900 garages with cashless facility across India.
2. The policy is given online with digital signature instantly.
3. Accident cover for co-passenger is available up to Rs.2 lakh.
HDFC ERGO Private Car Insurance Package Policy
1. HDFC offers w wide range of benefits beginning with discounts offered on the HDFC ERGO Private Cars Insurance policy, such as Automobile Association Discount and discounts based on age and profession.
2. Online convenience: Both for buying the policy and renewing it, the online service can be availed of.
Tata AIG private car insurance
1. Tata AIG offers a free pick-up of car
2. They also offer a direct settlement facility at special garages
3. They give a 6-month accident-repair warranty
4. They also give an enhanced protection through unique add on covers
How to get the Best car Insurance - Points to Remember:
- Determine the insurance requirements for your car.
- There are three types of coverage –Your liability where the damage is caused due to your fault, third party liability where the damage is caused by another driver and damage due to vandalism, theft, fire, flood etc. Ensure that the policy covers all three situations.
- If your car is parked in a parking lot then you can choose lesser coverage. If you park it in an unsafe place you may want to increase the coverage.
- The agent will ask questions to determine the kind of driver that you are. Be as truthful as possible.
- The place of your work, the distance between your office place to residence and the number of people who drive the car are all factors that you must consider before you buy a policy.
- If you have not claimed during the year of policy, you may get a discount for the next policy term. This is known as the no-claim discount. Check if this offer is available.
- Some of the insurance companies insist that repairs that your car needs have to be done at particular service centres for you to claim the repair charges. Find out more if this clause exists.
- Some of the insurers provide legal protection; reimburse damage to in-car audio equipment and personal belongings. Compare these offered by various insurance companies.
Important Points to Take Note of:
- Find out if you can get additional insurance for passengers and drives. While most of the good companies offer this facility, it is always better to ask up front.
- While declaring information on the proposal form, be as honest as possible. This will avoid complications later on.
- Whatever are the terms & conditions of the policy ensure that you get it in writing. These terms and conditions often change and the dealer selling the policy to you may not be aware of the latest changes.
- Do not fail to read the fine print. Most of the important information regarding the policy validity and other offer details are given in fine print.
- Most important of all, drive safely. The lesser the accidents that you are involved in, the lesser premium you pay over time. Remember nothing is more important than your life!
Contributed By: Aparna K S
Aparna has worked for Stock Holding Corporation of India Ltd (SHCIL). She has hands-on experience in various financial products. She also has expertise in various mutual funds, pension policies & other financial products. She is currently a freelance writer on various domains including finance