It is a must for all car owners in India to have a valid car insurance policy. It is a type of insurance that acts as a financial safeguard against losses that may occur as a result of accidents, thefts or other unforeseen events involving your vehicle. Additionally, it aids in covering potential accident-related expenses like repairs and medical care.
When it comes to car insurance, there are two options available to you: buying a new policy or renewing an existing one. In this blog, we will discuss the pros and cons of both these options to help you make an informed decision.
Buying Car Insurance
If you are purchasing a new car or your existing car is not insured, you will need to buy a new car insurance policy. Even though the process of purchasing car insurance may appear daunting, it is fairly straightforward if you know what you are looking for. Here are some of the essential factors to consider when buying car insurance.
Coverage
The first thing you need to do before buying car insurance is figure out what kind of coverage you want. There are three main types of car insurance policies to choose from.
#1 Comprehensive Car Insurance
A comprehensive policy that covers damage to the car, personal accident cover, protection against losses due to theft or natural calamities, and third-party liability.
#2 Third Party Car Insurance
This policy provides protection against any liability to a third party arising due to an accident.
#3 Own Damage Car Insurance
This policy covers losses arising due to theft of the car and damage from natural calamities, man-made disasters, or accidents.
You can choose the policy that best suits your requirement. In order to ensure that you are adequately protected in the event of an accident, it is always recommended to opt for additional coverage. When you purchase a policy from Cholamandalam car insurance, you have the option to personalise your insurance and choose from the range of add-ons available to you, like zero depreciation cover, roadside assistance, etc.
Deductible
The amount that must be paid before insurance coverage begins is known as the deductible. While a higher deductible may result in a reduction in your monthly premium, it also means that in the event of an accident, you will be required to pay more out of pocket. You should take into account your financial situation and select a deductible that is affordable for you.
Discounts
Many insurance companies offer discounts for various reasons, like safe driving, having/insuring multiple cars, and anti-theft devices, to name some. Make sure to inquire about any discounts that might be applicable to you.
Credibility of the Insurer
Before purchasing car insurance, make sure that the insurance company you opt for is financially stable and has a good reputation for paying claims promptly. You must go through the customer reviews online. You can also check the insurer's financial strength by checking their rating with independent rating agencies.
Understand Policy Documents
Make sure you have read the car insurance policy document thoroughly and understood the terms and conditions of the policy, including its inclusions and exclusions, before you sign the papers. In case of any questions or concerns, be sure to ask your insurance agent or company representative.
Renewing Car Insurance
If you have car insurance already, you have the option to renew your policy when it expires. Although renewing your car insurance is easier than purchasing a new policy, there are still a few things to keep in mind.
Review your Existing Coverage
At the time of renewal, make sure to review your plan to see if it still meets your requirements. Any changes in your life, whether it be additions of members in your household or your financial situation, should be factored in. Such changes are what determine the change in your coverage needs. You should also take the time to compare different plans, to see if any other plan better suits your needs.
Add-Ons
On reviewing your coverage needs, consider getting some add-ons that fit your needs. These are additional coverages that can be added to your insurance plan by paying extra. Add-ons help get extra protection for your car, without having to opt for an insurance plan that goes beyond your budget. Add-ons such as zero depreciation cover, roadside assistance, key replacement, etc., can be added to your existing plan.
Claim History
Be certain to look into any discounts that may be applicable to you when you are reviewing your insurance policy. This can depend on your claim history. For example, if you have not made any claims during a policy year, you can avail a no-claim bonus (NCB) for such a time. This makes you eligible for discounts at the time of policy renewal. The percentage would, however, vary depending on the number of years gone without a claim.
Buying car insurance at the time of purchase of a vehicle is the first step to safeguarding yourself from any uncertainties while driving. Post your policy tenure, whether you want to buy a new policy or renew your existing one is a personal choice and solely depends on your needs. By following the above-mentioned tips, you can have the peace of mind of knowing that you have the right coverage at the right price to protect yourself and your car on the road.
At Cholamandalam car insurance, you can buy or renew your policy by following some simple steps on our website. Fill in all the necessary details online to get a quote immediately, and choose a plan and add-ons as per your requirements. Upon making the payment, you will receive your car insurance in your email. Cholamandalam car insurance keeps track of your policy renewal dates and sends you timely reminders. Any claims that may need to be filed can be made and tracked on their website. Their dedicated team of customer support representatives are available at all hours of the day to help you with any questions and ensure a speedy claim process. Go to the Chola MS website to learn more about how they can help you.
(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)