Various policies are available in the market, and it is very cumbersome for individuals to pick and choose the most effective policy for themselves. While it is true that according to Indian law, a person must have third-party insurance, it is still recommended that you have the information to choose the best policy for yourself.
Understanding the Best Type of Car Insurance
Before going forward to purchase any insurance policy, it is always essential to understand what your requirements are so that you can assess various policies and choose the best available. First and foremost it is essential to understand that there are two kinds of vehicular insurance policies namely Third Party Insurance and Comprehensive Insurance policy.
Both have their benefits and drawbacks but a third party mainly is preferred when a person just needs to have liability cover against damage caused by a third party, whereas a comprehensive policy covers third-party damage as well as damage that occurred by the person himself. A person opting to buy a car insurance policy should look for various factors before purchasing it.
The Policy should, in principle, have comprehensive coverage. This is because it not only covers damages done by a third party to the car but will also include compensation in case of theft and damage. However, people who want to spend less on their car insurance and are under a tight budget constraint can go for third-party insurance, which will only indemnify a person against legal troubles.
Finding the Best Car Insurance Coverage for You
Car Insurance policies have clauses inbuilt which determine the true value of the insurance. So it is very necessary to assess your needs and understand the different types of coverages offered by different insurance agencies before jumping on to buy the insurance policy:
Understand different coverage types: Understanding different types of coverage is a must. Coverages typically can be of various types, such as liability coverage, which essentially protects any damage that you cause to others. Further, it is also advisable to look for a policy that covers the medical bills you might get after getting involved in an accident. This essentially means that you will not face the brunt of unprecedented medical bills.
Evaluating Deductibles: Deductibles are the sum in any insurance policy that a person has to pay from his/her pocket when filing a claim. This means that when a person files a claim for car insurance he/she has to actually pay some amount of money before his/her claim can be processed.
Usually, deductibles are not very large amounts and will be only a small part of the overall value of the claim, however, it is essential to analyze all the policies and carefully see if you are not taking any unnecessary deductibles which could make your policy costly in coverage.
Checking Customer Reviews: It is also very important to check customer reviews of any insurance offering third-party websites. This process will help you find any troubles faced by the users who already purchased the insurance and also give you a fair idea of whether the agency processes claims frequently or not.
Determining Which Type of Car Insurance Is Best
There are various things to look for when deciding to buy car insurance further, it should also cover various situations where you might need car insurance to cover you.
The car insurance policy should ideally offer a wide range of coverage options that can be tailored to your needs, depending on your needs. For instance, good coverage in a car insurance policy includes high liability coverage, collision coverage, and comprehensive coverage.
Further, the policy should also have an uninsured driver coverage which will cover anyone who is not in the policy documents driving your car. Other than that, it should mandatorily cover medical expenses and should have a personal injury protection cover.
Another thing that individuals can add to their policy is Rental Car Cover and Highway Assistance, which are both very important aspects of a car insurance policy in themselves. Thus, looking for policies that include roadside assistance can benefit in case of a flat tire or a total breakdown of the car, moreover adding rental car cover gives you a rental car in case your car breaks down midway through your journey.
Other than that it is also recommended that the insurance policy you are buying for your car should also have various discounts attached to it like discounts for anti-theft devices installed in the car, no claim bonus, and discounts for young drivers.
The last thing a person needs to check to determine whether any policy is good or not is the claim settlement ratio of the insurer. The claim Settlement Ratio is a metric that shows how frequently any insurance company processes and settles claims made in a policy.
This is essential because no one wants unnecessary frustration while claiming insurance when an individual needs the money most. Furthermore, do not also forget to check for the financial stability of the company as this will also determine the chances of your claim getting settled.
Which Insurance Type is Ideal for Your Car
Different types of cars may have different needs depending on the features and company of the car. For instance, when a person has a car that costs less and is also a bit old, then he/she can opt to go for third-party insurance as this will not only lessen the value of the premiums one has to give but also will ensure that the money doesn't get spent where it is not merited.
However, in cases of persons owning expensive or luxury cars that they want to protect from theft, they should also opt to purchase a comprehensive car insurance policy which will give them back a substantial amount after damage or theft of their car.
Furthermore, in cases of individuals who use their cars for regular commutes, add-ons like Rental Car Coverage will help as you would not want to miss your office or work when your car needs servicing or repair from any damage. Other than that if you have an existing lease on your car, adding on a gap insurance clause will benefit you in the long run, as it will cover your lease costs in the long run in case of theft or total damage to your car.
Conclusion
All things discussed, it is fair to say that you now have a fair idea of buying car insurance for yourself. Ultimately, it comes down to what you need specifically in car insurance, and depending on the risks and various situations you are involved in, it is optimal to choose insurance only after comparing thoroughly different websites.
