When it comes to buying a car insurance, most people prefer going by their friend’s advice or the insurance agent’s suggestion. This is probably the biggest mistake you can ever make. Just like you make careful considerations before buying a car, purchasing an insurance policy also requires equal efforts.
Different insurance companies have different rates. Additionally they also vary in the in aspects from coverage amount to claim settlement services. So, it is vital to carry out thorough research before making a purchase.
To help you grab the best car insurance deal, we have compiled a list of questions you should ask both your insurance agent and yourself to find the right cover.
What type of coverage do I need?
There are two types of coverage options, third party liability and comprehensive cover. The type of coverage you buy will depend on your needs. Third party liability is the cover that protects you against the damages caused to another party in case of accident and injury. This type of policy is mandatory in India.
Whereas, comprehensive cover provides full financial protection to you as well as the third party. Availing this type of policy is not mandatory but owner driver’s choice. A comprehensive cover will also give your personal accident cover up to RS 1 lakhs.
What is my risk taking capacity?
Risk assessment is done on number of factors such as car model, manufacturing year, location and your driving record. The more the risk, the more will be your insurance premium.
What all things are covered in my policy?
A comprehensive coverage will provide protection against damages caused to your vehicle in case of accidents. It will also cover your medical expenses, if you are suffering severe injuries. In short, the car insurance policy takes care of your financial soundness even in times of crisis.
In case, you share your vehicle with your family member then you will have to buy an additional coverage by paying extra premium.
How to cut out on extra costs?
There are number of ways that can lower your monthly premium costs. Some of them are listed below:
• Maintaining a safe driving record.
• Installing advanced security features in your vehicle.
• By asking your company which other discounts you are eligible for.
• By buying car insurance online.
What should be my deductibles?
Deductible is the amount you will have to pay until your insurance company starts paying for damages to your vehicle. It might be tempting to have a low deductible, but having a policy with higher deductible can significantly lower your premium pay-outs.