One of the first things we aspire to do when we start earning is to buy a car. Most people start off with a used or second-hand vehicle until they gain confidence and buy their dream car. But whether it’s a used car you’re buying or a brand-new one, you must remember to purchase a good motor insurance policy. In any event, third-party motor insurance is mandatory under the law. Your car insurance protects you financially if you are in an accident and your car is damaged or completely totalled. Here are things you must do and avoid while buying insurance.
Things to do while buying car insurance
Here are three things you should do when you buy insurance for your car
1. Select a reputed insurance provider
You need an insurance provider who will come to your aid when you need to file an insurance claim. So you must do your research and select an insurance company that is known for its impeccable service. You can find information about car insurance companies – specifically their claim settlement ratios, level of customer service and customer reviews — on the Internet through feedback forums easily.
2. Invest in a comprehensive insurance policy
There are two kinds of car insurance. One is third party insurance, which protects you against any liability if you are the cause of a road accident. This is mandatory under the Motor Vehicles Act. However, this won’t protect your own vehicle or person in case of an accident. For that, you will need a comprehensive insurance policy, which is voluntary.
You can buy car insurance online or through an agent. A comprehensive insurance policy provides protection in case of car accidents as well as damage to your car as a result of natural calamities and manmade disasters.
3. Buy the necessary add-on covers based on your requirements
You can also buy some add-ons to get additional coverage. These include things like engine protection cover, emergency roadside services, accessories protection cover and zero depreciation cover, etc., which are not included in your comprehensive policy. You can purchase these add-ons based on your requirements. For instance, if you live in flood-prone areas, you should opt for engine protection cover. Remember that you have to pay addition premium for add-ons, so take only those you need.
Things to avoid
Here are three things you should avoid doing while buying a car insurance policy.
1. Buying the cheapest policy available
Most people think of insurance as an unnecessary expense and purchase the cheapest policy available – the third party limited liability insurance policy. However, should something happen to you in an accident, an insurance policy like this will not cover you for injuries or damages. Such a policy only covers the third party.
2. Letting your policy lapse or expire
If you want to continue enjoying the benefits associated with your policy, car insurance renewal is incredibly important. You must renew your policy on time. You cannot get coverage or file claims if your policy lapses by even a day! Also, you can lose the no-claims bonus if you let your policy lapse or expire. No-claims bonus points, or NCBs, are given if you don’t make any claims during a year, and these can be accumulated. You can discounts on insurance premiums using NCB points.
3. Ignoring the claim filing process to the letter
When you file an insurance claim, you must follow the exact claim filing process as mentioned in the insurance agreement. File an FIR, gather evidence, don’t tamper with the evidence and submit all the documents necessary. Failure to comply with the claim filing process to the letter can result in your claim being rejected.In conclusion, you must ensure you adhere to the above mentioned dos and don’ts when you purchase your car policy. Investing in a comprehensive policy may seem an unnecessary expense, but will prove extremely beneficial in the long run.