Guide to choosing the best car insurance policy

Buying an insurance policy is the most important thing you will have to do after buying a car. With the number of options available, it is important to evaluate all the options before choosing the one most suitable for you.  

Many people generally do not look beyond the premium of a car insurance policy. They generally tend to pick the insurance policy with the lowest premium. The importance of the finer details of an insurance policy will be known only at the time of making a claim. Listed below are some of the steps you should keep in mind in case you are looking for an insurer to buy a car insurance from.  

How to choose a car insurance policy? 

Before choosing a car insurance policy, evaluate all your expectations from the insurance policy. What type of coverage do you expect? Do you want to protect your own vehicle at time of an accident? These are some of the questions you need to ask yourself before choosing a car insurance policy. Listed are the factors you need to have a look at before choosing your insurance policy. This will help you get a better idea of your insurance requirements and how the insurance market works. 

• Compare key features of different insurers 

If you have been looking for an insurer, make sure you make a shortlist of all the insurance policies. Compare the coverage offered by the different insurers and check if they are offering similar coverage. Check if the car insurance is protecting any damages your car could incur, personal accident, and coverage for any injuries incurred by third parties. 

• Check if insurer provides flexible coverage 

At the time of purchasing an insurance policy, make sure the insurer offers flexible coverage as part of the insurance policy. Since insurers cater products to a wide range of people, one type of policy will not provide the cover needed for everybody. Pick a policy based on the specific coverage you expect from an insurance policy. 

Check for insurers who offer flexi-coverage. Flexi-coverage means that the insurer is willing to modify the insurance plans offered by the company according to your needs. Try to give priority for such insurers as these companies will provide the specific cover you are looking for. 

• Evaluate the credibility of the insurer 

It is very important that you check the credibility of the insurer before purchasing an insurance policy. There are some factors you need to have a look at to get a better idea of how the company settles claims and if the settlements are made on time. Try to pick an insurer who already has a good reputation of settling claims in the insurance market.  

Check some of the data like the claim settlement ratio and the incurred claims ratio of the company. Go for the company with a higher claim settlement ratio. The amount of money they have collected as premium can also be a good way to determine the credibility of the company. You can find these details on the insurer website or on any neutral financial website. 

• Quality of customer service 

Before going ahead and picking an insurer, you will have to check the quality of the customer service. This is one of the more important factors that many do not look at while choosing an insurer. There are some important details listed below that you should know while evaluating an insurer: 

• Reviews from customers about the customer service 
• Overall reputation of the insurer 
• Number of years the insurer has been in business 
• Claim settlement ratio of the insurer 
• Distribution of Service 

Check the distribution of the insurer across the country. A company having a wider network is much more desirable. Pick an insurer who can always be accessed for assistance 24x7. 

• Cashless Claims Settlement option 

Cashless settlement of claims is one of the best features introduced by insurers. Under this option, insurers have tie ups with a number of garages across the country. Cashless settlements make claims much easier as there is not a lot of procedure to be followed for making cashless claims.  

Look at the cashless garages that have a tie up with the insurer and see if you are comfortable servicing your vehicle in the garage. Having a cashless claim option will ensure that you have an option to repair your vehicle even when you do not have the money at that moment.   

• Reevaluate at the time of insurance renewal 

You should not restrict looking for an insurance policy only when you are buying an insurance policy for the first time. Make sure that you evaluate all the options available even at the time of renewing the policy. It is good to check if your current insurer is still offering the best quote for the coverage you need. 

• Read the fine print 

Ensure that you go through the terms and conditions of the policy before picking the insurer. Claims procedure, modes of payment available, and renewal procedure are some of the details you should know before picking an insurer. Make sure the claim procedure is simple and hassle-free. 

• Check the cost effectiveness 

It is important to check the cost effectiveness of the plan. Do not pick the third-party liability plan only because of the cost of the policy. Buy an insurance policy that offers the required protection at a nominal premium cost. You can also opt for add-on covers based on the specific type of protection you need from the insurance policy.  

What are some of the popular add-on covers one can choose? 

It is advisable to have a look at the add-on policies that are available before finalising your car insurance policy. Take a look at all the add-on covers that are available before choosing your insurer. Choose the car insurance that has all the add-on covers that you are looking for. These additional benefits can be of great use at the time of an accident. Listed below are some of the popular add-on covers you can opt for: 

• Personal Accident Cover 

Personal accident cover will protect the owner of the insured vehicle and will provide financial cover in case of death, temporary disablement, or permanent disability of the insured person due to an accident involving the insured vehicle. 

• Engine Cover 

The engine of a car is generally not covered under a normal car insurance policy. This is generally one of the important exclusions in many of the insurance policies. Buying an engine cover will provide your engine the extra protection and will cover any expenses that are related to engine damage. 

• Zero Depreciation Cover 

This is one of the most common add-on covers opted by many of the insurance buyers. If you purchase a zero-depreciation cover for your car, the cost of depreciation applicable for repair or replacement of the parts of the car will be covered by the insurer. Check how the depreciation is calculated and see if it is a good option for you to get this cover. 

• Roadside Assistance Cover 

Roadside assistance cover can be very useful if you will be using your car to travel out of town frequently. This cover will provide you with assistance in case you are stranded in the middle of the highway because of an accident or an engine problem. The insurer will immediately send a car mechanic to wherever you are stranded to repair the vehicle. 

To summarise the entire process of finding the best car insurance policy, listed here are the points you should keep in mind while purchasing and renewing a car insurance policy: 

• Evaluate your insurance needs and figure out the extent of cover you need. 
• Shortlist the insurers offering the plan you are looking for 
• Compare all the shortlisted policies using a neutral financial website 
• Check the add-on covers and pick the ones you need 
• Ensure the insurer you pick has a good claim settlement ratio 
• Pick the most reliable insurer who also offers great customer service