Categorized | Car Insurance

tips for buying vehicle insurance

Buying the best car insurance can be a mind boggling affair if you look at the sheer number of deals available in the market. Day in and day out, general insurance companies come up with a number of offers and schemes that may either look similar or sometimes strikingly different.

The composition of the deals could be such that they may appear confusing. You might not be able to read between the lines and end up buying vehicle insurance that may not meet your requirements. Dealing with insurance agents can make it all the more complex and you might not get the information you seek to make a well-informed decision.

Here we have certain car insurance tips that will help you in developing a good understanding for buying vehicle insurance.
First thing first: Insurance premium

The first and foremost factor to consider while buying vehicle insurance is premium- the amount to be paid to the insurance company. To figure out a reasonable amount of insurance premium, you should first derive a fair value of your car. This value is generally computed on the basis of the last year’s value. Once you zero-in on the value of the car, you can invite quotes from various insurance companies to arrive at a decision.

Getting quote on the same declared value will help you in making comparisons. For example, if you are declaring the value of your car at Rs 5 lakhs, then take quotes on the same value from all the insurance companies.
 
Sometimes, insurance agents try to use a different value of the car to make their offer look attractive. In this case, Premium amount, for example, on Rs 5 lakhs will be different from the premium amount quoted for Rs 4.75 lakhs. Do not fall prey to these sales and marketing tactics.

If for some reasons, you have to change the value of your car then take the quotes on the basis of the revised value.

Third party insurance

The Motor Vehicles Act 1988 makes third party insurance compulsory and all general insurance companies are liable to provide cover against damages to third party. It is always advisable to know the amount of this Coverage before you buy vehicle insurance.

Comprehensive Vehicle Insurance


The comprehensive vehicle insurance covers not only third party damages/loss but also protects the occupants of the vehicle and Insured persons vehicle from damages caused by fire, earthquakes, riots etc; and even loss or theft of the vehicle.

Do check for this feature before buying vehicle insurance. If you buy a policy, which does not provide this option, then you have to buy personal Accident insurance separately.
 
No Claim bonus

If you do not raise any insurance claims in a given year, you are eligible for a No Claim Bonus (NCB) in the next year. The NCB amount Deductible from the total amount of the premium is quite significant.

Taking care of the above mentioned points would help you get the best car insurance and the best value derived out of that.