According to the Motor Vehicles Act of 1988, you must have vehicle insurance if you intend to drive in India. Motor insurance is not just for that reason. Motor insurance protects your car from unplanned risks and damages. This includes damage caused by a flood or a theft attempt. You, your passengers, vehicles, people, and property are also protected if there is an accident.
You can buy or renew your car insurance online within minutes. Before you buy or renew car insurance online, you should review this checklist to determine which policy is best for you.
All-round coverage
Only third-party liability insurance is required by law. In the event of an incident, this covers the interests of pedestrians, other vehicles, and property but does not provide financial assistance to the vehicle owner. It is therefore important to have comprehensive insurance that covers not only you but also your car from accidents and other mishaps such as theft or natural disasters.
Comprehensive insurance can protect drivers, car owners, and passengers from financial liability in the event of an accident or hospitalization.
Add-on Benefits: Secure your bases
Motor vehicle insurance also offers a range of add-ons to enhance protection. The Zero Depreciation Cover, for instance, compensates you against any deductions that are made on your claim due to the depreciation of vehicle parts. The engine protection cover, as well as the consumable cover, provide coverage for auto parts not covered by a standard insurance policy. Add-ons will raise your insurance rates, but their benefits far outweigh the costs.
Assess the deduction
A deductible is the amount of money that car owners choose to pay upfront when they file a claim, for example, while repairing their vehicle. Insurance premiums are lower if you choose a higher deductible. It is not necessary to select a deductible. The insurance company can cover all costs. It is important to consider your financial situation, your age, the condition of your car, as well as the risk of a claim, based on the driving habits you have and where you live.
NCB Discounts
Insurance companies will offer a No Claim Bonus for each year that they have not made a claim. You can receive a 10% discount on your premiums starting in the second year. This can go up to 50%. If you want to switch insurers, it is best to select a provider that offers NCB and also allows you to transfer this benefit to another provider. Check if NCB is transferable if you are selling the vehicle.
Check the service network quality
Before purchasing an insurance policy, you should consider the quality and extent of the garage network offered by the insurer. An accident or breakdown can occur anywhere and at any time. Having an insurance plan that offers a large garage network and cashless service in India will ensure you can have your car repaired quickly by the nearest garage, without wasting money and time.
Calculate the claim settlement rate of an insurance company
You may have to pay the repair costs and then submit the invoices and expense reports to your insurer. The service provider will then evaluate the claim and decide whether or not to pay for the entire cost. It is better to choose an insurance company that has a high Claim settlement Ratio (CSR) to avoid future grievances.
CSR can be defined as the ratio of approved claims to the total number filed by policyholders during a particular year. A CSR of 90 percent or more is considered acceptable and reduces the likelihood of claims being rejected.
Make an informed decision
Compare the features and costs of different insurance companies before renewing or purchasing a vehicle policy. IDFC FIRST Bank gives you the option to select a general insurance plan from three different companies. Add-ons such as engine protection, zero depreciation, roadside assistance, and garage cash cover are available to enhance your coverage.
Track your policy renewals
Many families have hardly used their vehicles because they work from home. The vehicle insurance may not be valid. You should know when your motor insurance policy is due to renew. If you’re a first-time offender, driving a car without valid insurance can result in a Rs 2,000 fine and/or a maximum of three months imprisonment. If you are involved in an accident without valid insurance, your financial responsibility will increase.
It is recommended that you set up an ECS auto-debit to renew your insurance online if you have coverage. If your policy has expired, you may still be able to get some benefits as long as it is not more than 90 calendar days old.
