In today’s time, owning a car or bike has become much more than just a symbol of luxury; it plays a significant role in making the daily commute easier. With the increasing demand for vehicles, it is important to ensure their complete protection and prevent them from damage. Choosing the best insurance policy for car or bike can be daunting with so many options available, but you must still ensure its financial security by getting the best policy for it. Thus, in the section below, let’s help you with some essential tips to buy the best car/bike insurance policy and enjoy peace of mind.
10 Key Tips to Consider While Buying Vehicle Insurance Policy
Sometimes, a lack of understanding about vehicle insurance policies can lead to purchasing the wrong policy and resulting in inadequate protection for your vehicle. So, whether you are buying a car or two wheeler insurance policy, you need to be aware of certain things. Let’s walk you through some of the tips that will help you buy the right policy for your vehicle:
- Policy Coverage: There are three types of coverage that you choose to get while buying a vehicle insurance policy: third-party, standalone own-damage, and comprehensive coverage. While a third-party and standalone provide coverage only if there is any damage to a third-party or the vehicle, respectively, comprehensive coverage ensures complete protection for the vehicle. So, analyse your coverage requirements and accordingly get the right coverage.
- Claim Settlement Ratio: The claim settlement ratio refers to the ratio between the number of claims settled to the number of claims received in a given financial year. So, while buying a car or bike insurance policy, you should choose an insurer that has a higher claim settlement ratio. The higher the claim settlement ratio, the higher will be the chances of your claims getting settled.
- Premiums: Before buying any vehicle insurance policy, you should check its premium. You must never buy a policy that has a higher premium amount and does not fit your budget.
- Deductibles: There are many insurers who have a compulsory deductible component in their policy. Deductibles are basically the amount that the policyholder needs to pay from their own pocket during claim settlement. The more the deductibles, the lower will be the premium. So, before buying a car or bike insurance policy, check the deductible component in your policy.
- Add-ons: Add-ons like Zero Depreciation Cover, Key Loss Cover, Roadside Assistance Cover, etc., enhance the overall coverage of your car/bike insurance policy. As these add-ons are available at higher premiums, you should be mindful while adding them to your vehicle insurance policy.
- No Claim Bonus: No Claim Bonus is a type of reward that is paid out to the policyholder in case they do not raise any claim in a given year. So, make sure to transfer your existing No Claim Bonus, if you are buying a new vehicle insurance policy.
- Customer Assistance: You must be able to reach out to the customer support team whenever required. Thus, while choosing the right insurance coverage for your vehicle, make sure to also check the customer support service of your insurer. You should ideally choose an insurer that offers 24*7 customer service.
- IDV: IDV or Insured Declared Value refers to the exact market value of your car or bike. When you are buying a policy, you are supposed to declare the IDV. So, choose the right IDV, as it will directly affect the amount your insurer will provide during the time of claim settlement.
- Cashless Garages: A cashless garage has tie-ups with insurance companies and ensures that policyholders can get their vehicle repaired at these garages without spending anything from their own pocket. So, to get the best vehicle insurance policy, you must choose an insurer that has a higher number of cashless garages.
- Renewal Process: Last but not least, you must check the renewability feature of the vehicle insurance policy. You should look for a policy that can be renewed every year in a hassle-free manner. Sometimes, when you are renewing the car/bike insurance policy, you can even get renewal discounts and save on the overall premium.
Summing Up
Thus, you must safeguard your vehicle by buying the right insurance policy for it. Just keep the above-mentioned tips in mind and read the policy terms and conditions while buying a vehicle insurance policy.
