Last Updated on Dec 2, 2021 by James W
Car ownership now is no more a need but a specific requirement for better livelihood. However, a lot of confusion comes with buying the first car. It entails proper research about the specifications, budget, brand reputation, technical know-how, and other things.
A major aspect that warrants specific attention is buying the car insurance policy for the new car. One needs to be very careful while making any decision regarding the insurance. This article puts forth a visual comparison of what to do and what not to do during the policy purchase.
Statutory Requirements
Many countries often have the mandate to have a third-party insurance policy. Such policies are in place to protect you against any liability arising due to any road accident involving your vehicle.
The most prevalent vehicle insurance policies are standalone own-damage car insurance policy and comprehensive car insurance policy. A comprehensive car insurance policy gives coverage of all the damages from third-party losses to the own ones. The standalone own damage covers damages by the insured’s car.
Most times, people are unaware of the statutory requirements they need to meet through a car insurance plan.
The Basics
There are a few basic pointers that you can keep in mind to make the right decision for your car insurance policy selection. You can check the below ones before shortlisting the apt policy for you:
- The reputation of insurance providers – You can easily research the insurer online. You can check their reputation and the claim settlement ratio.
- Reviews of customer care – During the claim process, you are likely to interact with the customer service desk. You should check the reviews of the services given by the customer service desk. Also, you should find out about the delays, if any, as that can be an extremely frustrating experience during the crisis.
- The IDV – The insured declared value or IDV is the maximum compensation you can get from your insurance company in case of an accident. It helps you to understand the extent of coverage and guides you to select a better deal.
- Garages network – Most of the insurance companies have tie-ups with garages. It helps you to have a cashless repair service. It means that the settlement will happen directly, and you need not bear any out-of-pocket expenses. You should ensure that the insurance company has a large number of garages in their network.
- Online Purchase – One of the best ways to purchase insurance is online. You have the option to compare the different offerings by the insurance companies and go through the reviews. You can check the reviews of Infinity insurance while shortlisting your auto insurance partner.
Do’s and Don’ts
There is a specific set of dos and don’ts that you can subscribe to for a better experience with your car insurance.
Do’s
- Multiple plan comparison before shortlisting one – You should evaluate the numerous choices available in the market. You may be paying the same premium amount for years but getting services that are less than the market offering.
- Fill the form yourself – You should check the form thoroughly and fill it yourself.
- Go through the policy brochure – Going through the policy brochure or proposal form helps identify anything unknown and gather information about it.
- Enquire about add-ons – You should ask about the add-ons and add the suitable works for your policy as per the requirement.
- Store a copy of the proposal form – A completed form should be in your record for future reference.
Don’ts
- Do not get into the dealers’ trap – You need not buy an insurance policy from the dealer. The dealers will push you to do the same but do your research before purchasing a policy.
- Do not let others fill your proposal form – You should never allow anyone else to fill the proposal for your car insurance plan. Chances are, it will lead to confusion in the future.
- Do not leave anything blank – If there is any question that does not apply, mention ‘N/A’ or ‘Not Applicable.’
- Do not remain in the dark – Enquire about the plan’s coverage and make sure you know the process well before confirming.
- Do not agree to put any false declaration – You should never put any false declaration about the usage of your vehicle. It can lead to the cancellation of plans, putting hefty fines, and many other legal implications.
Therefore, as you can see, the above aspects can help you have car insurance that can aid during a mishap. Although the above checklist is generic, you should not ignore the same during the decision-making process.
