Before searching the best car insurance policy in India on the internet online and choosing any one not make sense. For choosing the best car insurance policy, you need do research for the best car insurance. The research include comparing the premium and finally selecting the best car insurance policy.
We can say the insurance policy is best when it settles the claim on timely, and when needed.
Key points to consider the best car insurance policy in India
while choosing the best car insurance policy in India, you must have to consider following key points:
Compare the premium of insurance companies online and choose the best one
There are many car insurance provider companies around us. They initially told you that, “We provide the lowest premium, we are one of the best car insurance company.” We dig into that company directly without comparing the premium with others. By comparing the premium rates, you will get some idea about which insurance policy is best to buy.
Check Insured Declared Value
Insurance declare value is the current market value of your car. No insurance company will give you money more than the insured declared value. The insurance premium is directly linked to the Insured Declare value. If the market price of the car is low, then the insured declare value will be low and if the value is higher then insured declare value will be higher.
As the car getting older, the IDV value is getting decreasing. The IDV value decided the rate based on the calculation of Age of the vehicle and depreciation Rate. It is best advice to never keep the IDV value minimum to lower down the premium.
Review of add on riders for best car insurance
It is recommended to pay attention to add on rider, so you can pick the best car insurance policy in India. It always recommended to pay adequate attention.
To have Add on Covers is best for car insurance policy
Add on cover important for car insurance policy. It covers the following point.
- Zero Depreciation
- Return to invoice
- Engine protection
- Consumable cover
- Flexible car insurance coverage
- Quick Roadside assistance coverage
- Personal accidental cover
- Key replacement
- Daily cash allowance
- NCB protection
- PA to Unnamed passenger. If your car is new, you should take Zero depreciation cover and Return to invoice cover. If your car run in flooded zone, then you should take engine protection cover. You can select the other cover as per your choice and budget.
Third party liability coverage
Third party liability coverage protects the car owner from any financial liability. The financial liability include the bodily injury, death and damage repair cost of third party.
NCB /No Claim Bonus must mention on your car insurance policy
If you have taken the car insurance policy and you have not claimed anything, then insurance company give you bonus upon policy renewal. This bonus is called “No claim bonus“. Due to no claim bonus your policy premium will get reduce.
If you don’t claim any amount upon policy renewal every year, your bonus increases. The benefits of NCB is applicable to only Own damage section and not the third party liability section.
Suppose if you have not claim anything on first year, you will get 20% NCB. On second year 25%. On third year you get 35%, fourth year 45% and fifth year, you get 50%. Therefore you can accumulate up to 50% of NCB. You will get No NCB for the year, if you have some claim on that year. If you have No mention the NCB on you car insurance policy, then you should obtain the NCB letter or Endorsement for NCB.
Take written Quotation and check Details
It is important to take the quotation details of the policy on the mail. To check the details of the car mentioned correctly. Such as Registration No, Make and model, Year of Manufacturing, Engine No and Chasis No. If any information is missed on the insurance, it will creates the difficulty in settlement of claim in future.
Ensure Zero Depreciation cover mentioned on your car insurance policy
The purpose of zero depreciation is to ensure the No deduction due to depreciation so that you will get full payment of all the parts. Let’s we understand it in detail.
There is different % of depreciation on different parts. The part you have charged for depreciation, that amount of charge you have to pay in depreciation. To understand better, you must have to know that which part of the car has the % of applicable depreciation. For example Rubber/ Nylon / Plastic parts, Tyre, batteries and air bag has 50% of depreciation. Fiber glass components has 30% of depreciation. Glass parts has 0% of depreciation.
The depreciation depends as per age of the vehicle. The older the vehicle the more the depreciation. It means the depreciation get increasing as you vehicle getting older. It will be applied to maximum 50%.
If you have No Zero depreciation in your car insurance policy, you will get the claim get deducted by depreciation. It means you will not get 100% claim amount if any part of the car damaged. So it is important to ensure there is Zero depreciation cover mentioned on your car insurance.
Quick Roadside assistance cover
If your car has an accident, engine failure or tire puncture. You will provided with option of roadside assistance. So you can call your insurance company and make request to send a car mechanic at your location.
Personal accidental cover
Personal accidental cover ensure the financial protection to car owner. It include the unexpected event that causes the physical injury or accidental death, or the person get permanent disability due to road accident.
Return to invoice cover
Return to invoice cover fills the gap of Cost of new car and value of car in insurance policy. The value of insurance policy is the value at which you will get the car insurance. This cover is mainly for theft and total loss of car. If you buy new car, you will also have to paid the Registration charges and road tax. Usually the insurance policy will covers the cost of the car.
If your car has total loss or theft and you have to buy new car, this return to invoice cover will help you to avoid any financial burden on you.
Engine protection cover
Engine protection cover is add on cover and it covers the consequential damage to engine. The engine damage covers the Hydro-static Lock, Leakage of Lubricants and damage to Gear box.
Consumable cover in car insurance
This is the add on cover which covers the cost of consumables. It has excluded by comprehensive insurance policy.
Now will see “what is consumables”. Consumables are those items which are consumed by machine and get replacement on timely basis. such as Engine oil, Break oil, Lubricants, AC gas, Screws, Nuts and bolts, Ball bearings and washers.
If the Consumable expenses during the claim not covered in the comprehensive car insurance policy. You have to pay by your pocket. If you take this cover, the company will pay the cost of consumables.
Flexible car insurance coverage
When you are planning to buy the best car insurance policy in India, You should opt for the flexible car insurance coverage. The flexible car insurance means you have varied option for car insurance as per your need. The different consumers have varied needs and the insurer must consider these needs.
There must not be the one policy for all. The flexibility should be available for optional to choose the best car insurance policy as per need. If the insurance policy is provided with considering this varying needs, Then you should think positive to buy such flexible car insurance policy.
Select the car insurance company carefully
Last but not least, do research for car insurance company thoroughly. You must check the background of the company and compare between the companies to select the most reliable one. You must have to check for the numbers of years the company in market and claim settlement ratio. Then opt for best company who fulfills your needs.