We all know getting a car insurance policy is mandatory in India, but if this is your first time buying one, you may be confused about where to start and what four wheeler insurance to buy.
Moreover, the legal jargon and the terms and conditions can vary across insurance providers and can sometimes be hard to grasp for a first-time insurance buyer.
For this reason, we have listed four key questions to ask when choosing a car insurance policy online. Having a clear answer to these questions ensures a smooth buying process and policy tenure. So read on to find out what these questions are!
What Kind of Car Insurance Policy Should I Get?
According to the Motor Vehicles Act, having at least a third party car insurance policy is mandated for car owners in India. This plan offers coverage for damages caused to the third-party individual in case of vehicular damage, injury or death.
However, rather than buying car insurance for legal compliance, you should choose one based on your needs, as buying one with the lowest possible premium can result in inadequacies during emergencies.
Here are some plans you should consider getting instead or in addition to a third-party car insurance policy:
- Own Damage Car Insurance Plan: This plan can be bought along with your third-party insurance plan. As the name suggests, it covers the repair costs for damages incurred to your vehicle during an accident – regardless of who was at fault.
An Own Damage insurance plan still requires you to pay a deductible during claim settlements while your insurer pays the rest of the repair costs. This plan is recommended for newer cars but can be skipped if you are insuring an older car.
Most online insurers, like Tata AIG, offer Own Damage car insurance plans on their website, which you can buy along with your third-party insurance plan to increase your base coverage.
- Comprehensive Car Insurance Policies: These plans are recommended for new car owners as they combine a third-party insurance plan and an Own Damage cover into one policy. They also offer add-ons you can get to increase your base coverage for specific repairs.
- Personal Accident Cover: This cover reimburses your medical expenses incurred due to an accident. Like an Own Damage policy, this cover can be bought along with your third-party insurance plans or included as an add-on cover with your comprehensive plan.
Lastly, regardless of the type of plan you choose, remember to compare car insurance online, as policy benefits, exclusions, and pricing will vary across insurers. Comparing car insurance policies online will give you a comprehensive overview of your chosen plans.
How Much Should I Pay For a Car Insurance Deductible?
A deductible is a predetermined percentage you pay during a claim settlement while your insurer pays the rest of the cost. This amount is decided between you and the insurer on policy purchase or renewal. It comes in two types: compulsory and voluntary.
Compulsory deductible percentages are fixed by the insurer, while voluntary deductibles allow you to choose the deductible percentage.
Opting for a higher deductible reduces your premium payable amount. However, this must only be done if you are confident in your ability to pay the deductible amounts during accidents and claims settlement processes.
Does My 4-Wheeler Car Insurance Cover Original Manufacturer Parts?
You must ask your insurer this question if you own a unique car or speciality model. Generally, there are two types of spare parts: After-market parts and original manufacturer parts.
After-market parts are cheaper and are made to fit a general type of vehicle, while original manufacturer parts are made to fit particular car models.
How Will My Car Be Valued Under The Car Insurance Policy?
As per SIAM (Society of Indian Automobile Manufacturers), the larger your four-wheeler’s dimensions, the higher your premiums. Moreover, if you own classic or luxury cars, this again could increase your car insurance premium rates.
In short, before you buy your new car, research how much you will need to spend to buy your car and your car insurance plan and see if all of these expenses fit within your budget.
Your car insurance policy should act as a companion through thick and thin when on the road. So finding a plan that satisfies all your requirements while still fitting within your budget is paramount.
Lastly, once you have figured out what kind of car insurance policy you want to get, the next question to ask is, “Is this insurer reliable?”. When buying a car insurance policy online, remember to check if the insurance company is IRDAI approved.
We recommend buying your plans from reputed insurers like Tata AIG to mitigate any fraudulent purchases.