The general need when it comes to car insurance is of compulsion and not security. Yes, car insurance is compulsory but it can also prove to be a vital financial security cover in case of a mishap involving your car. People that are not informed about the benefits of car insurance might consider it as a waste of money. However, reading and understanding about car insurance can help you realize that car insurance offers value for money, provided you make the right choices. Read ahead to know 5 tips that can help you to maximize your car insurance policy while buying and at the time of car insurance renewal
Compare and Insure
Irrespective of the type of car insurance policy you choose, it is important to compare policies before purchasing. Comparison should be made based on the price, coverage, and claim settlement service offered by the insurer. Digital-first insurance companies might provide lucrative offers on their websites.
You can check the price and coverage of a policy with the help of a car insurance calculator by visiting different insurer’s websites. Alternatively, you can also visit web aggregator websites that compare car insurance policies for you and then purchase car insurance online.
You can buy or renew vehicle insurance within minutes. Research by spending some time online to check car insurance quotes offered by various online insurers. However, do not be blinded by just the car insurance quote. Insights regarding an insurance company’s claim settlement can be gained by checking their Claim Settlement Ratio, going through online user reviews, and speaking to friends, acquaintances, and relatives about the service offered by an insurance company.
Choose your coverage wisely
Opting for a Comprehensive car insurance policy is any day more beneficial than choosing the basic Third-party liability policy. A Comprehensive policy includes the mandatory car insurance aspect, it covers own damage and allows you to strengthen your policy with the help of suitable Add-ons.
You can ensure that you get value for money for your policy by going for only most-suited Add-ons. Add-ons are extra covers that increase your premium but provide additional coverage. Therefore, you don’t want to pile up Add-ons just or the sake of it. For example, if you do not drive around with a laptop or other expensive personal belongings in your car, you might not need the Personal Belongings Cover.
Think before you claim
It is not necessary to raise a claim for smallest of issues. Note that every insurance company provides a No Claim Bonus to those who do not raise a claim against their Comprehensive car insurance policy. This discount can be availed while renewing the policy. NCB can be as high as 50%, provided no claim is raised for five consecutive years.
If you raise a claim, you lose out on this discount. Your NCB will reset to zero the moment you raise a claim. Thus, you need to be judicious. In case of a damage, calculate the impact it might have on your NCB before raising a claim for it.
Install Anti-theft Device
Installing an anti-theft device is a good precautionary measure against vehicle theft. Car insurance companies acknowledge this precautionary measure by providing a discount on the premium charged if you have installed an anti-theft device. Such a device needs to be certified by Automotive Research Association of India (ARAI).
Review and Renew
Car insurance policies need to be renewed from time-to-time. Driving a car without a valid car insurance policy is a punishable offense. It is as bad as driving without car insurance.
You can switch insurance providers while renewing your policy. Thus, you do not need to stick to your previous insurer. If you have had a negative insurance experience, you should switch your insurance provider while renewing your policy.
Even if you have had a decent insurance experience with your previous insurer, you can check out new, digital-first insurance companies that offer low-priced insurance policies without compromising on their coverage. Such insurers also offer quick, convenient, and satisfying claim settlement process.
Respect the law, follow rules, ride safely, and stay insured.
Also published on Medium.