5 factors to Help you Select the Best Car Insurance Policy

Apart from the premium of your car insurance, there are some very important factors that you should take into consideration when buying or renewing your car insurance. Five such factors are discussed in detail in this post.

Apart from purchasing a house, a four-wheeler is probably the most expensive purchase for a lot of people. As you invest lakhs of rupees in this purchase, it is necessary also to make sure that you take the necessary steps to keep it protected. Car insurance is the best way to protect your four-wheeler from unexpected situations.

Moreover, as per the Motor Vehicles Act of 1998, it is mandatory for every car owner to have a valid four-wheeler insurance. Rather than thinking it as a way to protect the car, most people think of car insurance as an additional expense.

As a result, they often look for policies with the cheapest premium. While there is no denying that the premium of car insurance is an important factor to be considered, there are other even more important factors that you should take into consideration.

Some of the most important ones are-

  1. Key Features of the Policy: Start by comparing the key features of the insurance policy. The policy you select should cover all the essential inclusions, like own damage cover. It should also cover personal accidents and injuries by a 3rd party. There are now online comparison portals that you can use to compare the features. While some are mandatory according to the IRDAI rules, few others can come in handy in times of need.www.CarSite.co.uk
  2. The Ratio of Cost to Features: Once the key features are compared, check the cost-to-feature ratio of the policy. For instance, there are a lot of policies which do not cover damages caused due to water-logging/flooding. Go through the clauses of the policy and relate it to the cost of the policy to make the right decision.
  3. IDV or Insured Declared Value: In order to reduce the premium of car insurance and offer a “steal deal” to car owners, a lot of insurance companies keep the IDV low. The IDV is the maximum amount that the insurance company will pay in case of car theft or total loss of the vehicle. However, such practices should be avoided as the premium benefit is generally not adequate to cover the total cost of the car in case if there is an actual theft or total loss. Moreover, the IDV of the car at the time of selling plays an essential role in deciding its price in the market. Even if you’re required to pay a slightly higher premium, prefer a policy that offers maximum IDV. However, make sure it conforms to the IRDAI rules especially if it is less than five years.
  4. Claim Filing Process: A car insurance policy is only as good if it comes in handy when you may need it. While there is no shortage of insurance companies, not all have a good reputation out there. Some either have limited garages in their network while some are infamous for their unhealthy claim-settlement ratio. Go for a company that has an extensive network of workshops and maintains a healthy settlement ratio.Kia Sportage Business Contract Hire

Leave a Reply

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