Taking a car insurance policy is legally mandatory for driving on Indian roads. It not only compensates for the damage to your car but also to other people in case of an accident. But, it is very important to keep some things in mind before buying an insurance policy. Throughout this article, we will talk about what things should be kept in mind while taking car insurance.
Many companies in the market offer insurance policies. You get features according to the price. In such a situation, choosing the right insurance policy for yourself can be a bit risky. When you buy a new car or bike, the dealership also helps you in choosing a good policy. But sometimes the cost of these policies becomes very high.
Insurance policy coverage
If you want a good insurance policy at a low cost, then it would be better to search for it yourself. Be it a car or a bike, keep these things in mind while choosing an insurance policy.
- Third-party insurance: This is the most basic insurance, which only covers damage caused to another person in an accident.
- Comprehensive insurance: Apart from third-party insurance, it also covers damage to your vehicle due to theft, fire, natural calamity and accident.
- Add-on covers: You can include add-on covers such as engine protection, roadside assistance, zero depreciation, etc. in your policy.
Insured Declared Value (IDV)
Insured Declared Value (IDV) is a very important point while taking vehicle insurance. You need to understand it. IDV means the amount that is received in case your vehicle is destroyed or stolen. To compensate for your loss, make sure that this amount is at least equal to the value of your vehicle.
Claim Settlement Ratio (CSR)
Before buying an insurance policy, definitely check the claim settlement ratio of the company. CSR shows how many claim applications the insurance company has paid out of the total claim applications received in a year. Also, check what will be the process for getting a claim.
Do not ignore the terms and conditions of the insurance policy at all. Therefore, take enough time to read the policy rules and read them thoroughly. Sign the insurance policy only after thinking thoroughly.
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