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Home Articles Before Purchasing Car Insurance Read This Review By Indianmoney.com

Before Purchasing Car Insurance Read This Review By Indianmoney.com

IndianMoney.com Research Team | Updated On Wednesday, November 14,2018, 11:36 AM

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Before Purchasing Car Insurance Read This Review By Indianmoney.com

 

 

Car insurance protects you from a financial loss arising out of damage or theft of the car. Car insurance also covers for damage caused by a third party and is compulsory in India. Car insurance protects you and the car from financial liabilities and legal liabilities which include damage to the vehicle in a collision, hospitalization for injuries, and injury/damage to a third party.

Types of car insurance:

Third party liability covers you for damage and injury caused to a third party (unrelated party).  This is both vehicle and property damage. Third party liability protects the, you are at-fault driver. Third party liability is compulsory in India. You can also opt for collision coverage where protection is given to your car. Coverage is for damage caused in a collision usually in an accident. Theft is not covered in collision coverage. Comprehensive car insurance includes own damage cover where you are compensated for damage to the car and bodily injury caused in an accident. It is a comprehensive plan which covers damage to car, theft of the vehicle, a personal accident cover to protect you/driver and third party legal liability.

Want to know more on Car Insurance? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.

Before Purchasing Car Insurance Read This Review By Indianmoney.com

Compare car insurance online:

IndianMoney.com advises a comparison of car insurance plans online as you save money and also enjoy higher coverage. You can save around 45-50% on car insurance plans and also get riders like engine protector, zero depreciation cover and others based on needs.

While buying car insurance online make sure to get comprehensive coverage for accidents, theft, fire, explosions, riots, lightning, acts of terror, personal accident cover and natural calamities.

  • Shortlist needs: Decide between third party liability and a comprehensive car insurance plan. While a third party liability plan offers cover for damage/injury caused to a third party, a comprehensive car insurance plan, though costing slightly more, covers for own damage as well.
  • Check claim settlement ratio: Before availing car insurance online check the claim settlement ratio of the insurer. Claim settlement ratio gives an idea on the number of claims settled. Opt for an insurer with claim settlement ratio over 90%. Check the rules of claim settlement for a hassle free settlement and opt for an insurer whose rules are favorable to you.
  • Go through IDV: Insured Declared Value or IDV is the cover amount on the car. It is the current value of the car adjusted for depreciation. Insurer fixes premiums based on IDV. Newer the car higher is the IDV and vice versa. IndianMoney.com advises you to compare IDV quotes across car insurance plans online, before hitting on a car insurance plan.

SEE ALSO: Types of Auto Insurance

Car Insurance Review:

1. Check No Claim Bonus: An insurer rewards you for a claim free year with a No Claim Bonus (NCB). This is a discount on renewal premiums. This is cumulative and increases each year, enabling a saving of 10-50% on car insurance premiums.

IndianMoney.com advises you to check the NCB of insurers before opting for their car insurance plans.

2. Check for higher deductibles: You can opt for a higher deductible on car insurance plans. A higher deductible means you bear a sizeable portion of repair expenses on a car accident in exchange for a discount on car insurance premiums. Opt for higher deductible only if you’re a very good driver and are willing to bear the damage costs.

3. Car insurance riders: IndianMoney.com advises you to take a look at car insurance riders and opt for those which match needs. A rider gives higher benefits at an additional cost.

Zero Depreciation Cover: This is complete cover without factoring in depreciation. If your car is damaged in an accident, you get the entire cost of repairs.

Engine protection cover: You are protected against damage to car engine because of leakage of lubricating oil, water ingression into engine, hydrostatic lock and so on. This cover is a must if you reside in a water logged area or face severe monsoons. Starting the car engine in water logged area results in hydrostatic lock and car engine damage.

Vehicle replacement rider: This rider helps if car is stolen or wrecked beyond repair. Vehicle replacement rider is useful if car is a total loss. The damaged stolen car is replaced with a new equivalent one.

Roadside assistance: This rider gives crucial round-the-clock assistance for flat tyre change, lost key recovery, car towing, battery jump start and so on.

Ambulance and medical expenses: You/driver are compensated for ambulance and medical expenses up to Rs 10,000 in a severe car accident.

Rental reimbursement: You are compensated for using public transport, car rentals and so on when car breaks down.  

SEE ALSO:When An Auto Insurance Claim Is Rejected?

4. Check exclusions:

IndianMoney advises to check exclusions in a car insurance plan.

  • Wear and tear of car parts
  • Loss/Damage when car insurance plan is not in force
  • Damage when driving without driving license
  • Damage due to oil leakage
  • Driving in intoxicated condition
  • Abuse of car manufacturers guidelines.

How to avoid misleading car insurance from agents?

  • Check if insurance policy is original: Contact the insurer customer care through email or toll free number.
  • Ask for receipt: Collect the receipt on paying the car insurance premium. Verify details like cheque number, date, amount, payee bank on the cheque given to the agent and the receipt.
  • Check IDV and NCB: Check the No Claim Bonus, Insured Declared Value and Deductibles to check genuity of the car insurance plan.  
  • Sign on proposal form: Make sure you sign on proposal form. Never allow the agent to sign on your behalf.

Car Insurance Fraud:

These tips should protect from potential scammers of insurance claims and false insurance agents.

  • Get a police report even for a minor accident.
  • Keep a camera with you or a smartphone to take pictures/videos in an accident.
  • Call your own tow truck.

This is how an insurer checks for fraud:

  • You are totally calm when submitting a huge claim.
  • You submit handwritten receipts for repairs.
  • There is a hike in auto insurance cover just before a claim.
  • If the fire which damaged the car started after a family argument.

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IndianMoney.com Research Team

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