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Questions To Ask Before Buying Car Insurance In India


wealthymattersWhenever you are buying a car insurance, more often than not, there isn’t much thought given as compared to any other services or product you buy.  It’s typically a no-questions-asked affair. But that’s not a right thing to do. It is of utmost importance that you get the right car insurance cover so that you don’t land yourself in trouble in the event of an accident.

There are insurance agents that can help you find the best car insurance coverage. However, there can be some agents that may mislead you into buying an under-par insurance cover. Nowadays, there are a lot of car insurance companies to choose from.  These companies offer a range of covers with varying premiums.  Thus you need to have the right knowledge before choosing a car insurance cover. But you may not have the time to research online for learning about car insurance. No worries, you can just ask the following questions in no particular order to help you choose the right policy – 

Do I get roadside assistance?

Presently, many insurers tend to provide roadside help in the event of a car breakdown or mechanical failure. This is a very beneficial since you can be assured that help will arrive in case your car breaks down in the middle of nowhere. This makes it an important question to ask before buying car insurance in India.

How is the claim service?

It is important to evaluate your car insurance provider in terms of their claims settlement record. Asking this question will secure your peace of mind during claims.

What is the IDV of my car? 

IDV stands for insured declared value of your car.  In simple terms, this is the current market value of your car finalized by your car insurer. This is a crucial question to ask since it has a direct impact on the premium. If you are buying the policy via an agent, it is possible that, during negotiation, the agent might reduce the premium. But at the same time, he may reduce the IDV of your car discreetly. This will hamper your insurance coverage significantly since you would be entitled to a lower claim amount.

Am I getting a discount?

Another question that you should ask is pertaining to the discounts on offer. Generally, you get a good discount if you buy or renew your car insurance online. You can easily get a Reliance Car Insurance online at a hefty discount of up to 60%.

Should I disclose claims history?

You also need to ask yourself if you want to disclose your claims history in case you are moving to a new insurer. You can get a lower premium if you do not disclose it. However, the catch is that there are chances that your claim might get rejected if the insurer figures out the discrepancy.

What is the voluntary deductible?

This is one of the most important questions. There are two types of deductibles, voluntary and involuntary. Basically, this is the amount that you pay from your pocket during a claim settlement. This figure is indirectly proportional to the premium. Higher the deductible, lower is the premium. Thus, it is vital to strike a balance between the two to ensure right coverage and maximum benefits.

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About Keerthika Singaravel
Engineer,Investor,Businessperson

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