5 Factors to Keep in Mind when Getting Car Insurance

Car insurance is an essential aspect of owning a vehicle. It provides financial protection in case of accidents, theft, or other damages. While third-party car insurance is mandatory, you can get a comprehensive policy to enjoy a wider cover.

However, with the variety of options available in the market, choosing the right car insurance policy can be confusing. From coverage type to add-ons, there are certain factors that you should keep in mind while taking car insurance. Understanding these factors can help you choose the right car insurance policy that provides adequate coverage at an affordable price, giving you peace of mind while driving.

Here are the top 5 factors to keep in mind while taking car insurance.

Check coverage type

Several types of coverage options are available for car insurance, including liability, collision, personal injury protection and comprehensive. It’s important to understand what each type of cover entails.

Liability or third-party insurance is a must-have and covers damages to other vehicles or property if you’re at fault in an accident. Collision insurance covers damages to your vehicle in case of an accident, while comprehensive insurance covers damages due to theft, vandalism, or natural disasters as well as third-party damage. Personal injury protection covers medical expenses in case of injury in an accident. So, assess your needs and choose a cover that provides you with adequate protection.

Consider deductibles

Deductible refers to the amount you pay out of pocket before your insurance coverage kicks in. Deductibles are voluntary, which means it is up to you to choose an amount you can comfortably afford in case of an accident. A higher deductible helps to lower your insurance premiums, but it also means that you will have to pay more out of pocket if you have an accident. On the other hand, a lower deductible may increase your insurance premiums but reduces the strain on your finances if you need to make a claim.

Consider your budget and income when choosing a deductible. If you have enough savings to cover a higher deductible, it may be worth it to lower your insurance premiums. However, if you have a tight budget, a lower deductible may be more appropriate to avoid a financial burden.

Look for discounts

Insurance companies offer various discounts such as:

On online purchases of car insurance
On bundled plans for multiple cars
On installing certain anti-theft devices
On safe driving
On getting membership in the Automobile Association of India
On not making a claim in the previous year (No Claim Bonus)

So check with the insurance provider and see if you are eligible for any of these discounts to save money on car insurance.

Assess the insurer

Choosing the right insurance provider is crucial, as it can make a significant difference in your experience when it comes to making a claim. Consider the insurance company’s market reputation, customer service, and the claims process before selecting a policy.

Check reviews and ratings from other customers before you proceed. One of the most important factors to consider is the company’s claim settlement ratio. A higher ratio indicates that the insurer honours claims, and this should be a key factor in your decision-making process.

Choose the right add-ons

You may want to consider riders such as:

Roadside assistance
Engine protection
Tyre protection
Passenger
Zero depreciation
Key replacement
Return to invoice
Consumables

By considering these factors, you can select a car insurance policy that suits your needs and provides financial protection.

To find the ideal car insurance plans, simply download the Bajaj Markets App. This one-stop destination offers you a range of financial products at your fingertips, including some of the best car insurance policies. You can easily check the exclusions and inclusions of various policies on the app and compare them before you sign up for one. Download the app today from Google Play or the App Store to choose the right car insurance plan today!