Buying car insurance is mandatory while buying a car in Indian Market. Car insurance: the least important thing that comes into our mind while buying our car. But it plays a very major role later, when it comes to claim or renewal.
There are certain aspects you should know before buying your car insurance. You should consider policies and services of providers, compare them and do a thorough research in the car insurance market.
You must understand what your policy provides you in a detailed manner (like each clause of your policy). There may be certain hidden points which can help in deed. Weather it provides more discount or it contains certain beneficial aspects that can really help you.
All you need to do is a thorough study about the market a policy rates of each provider. Below are 5 points we must know before buying the service for us.
01. Emergency Costs are included.
There are certain policies that covers may emergency costs like stay, transport during accident periods.
Transport cost: In case of severe accidents, if your vehicle becomes stock-still then the policy covers the overnight-stay charges of your stay and travel-cost of yours to the nearest city.
Personal belongings cost: Even if some of your personal belongings are damaged or lost, it is also covered in the terms of car insurance.
Daily Commutation cost: Along with that, the policies also compensate you for the alternate transport you take until your vehicle is under repair.
02. Bundled insurance can be a saviour.
Bundled insurance is the terminology that means you buy your house and car from the same insurance providing company you will get a better discount with reduced price.
It compounded the amount discount by combining many products’ insurance in to a single bundle. Thus you can get all the insurance in a reduced price.
It is really beneficial sometimes for buyers and for the insurers.
In Indian insurance markets, bundled insurance is really popular. Because every policy bundles up to one compound bundle with reduced price and increased discounts.
- You can save a good chunk of money.
- You do not have to keep track of all insurance policies and their renewal.
- It’s time and effort saving, as you pay premium for the whole at a time.
- It is easily manageable.
- You may not get all the policies, covers and exposures in one single premium.
- It adds limitations.
So, bundled insurance is sometimes very beneficial. All you need to do is go through all the market knowledge about your priorities and buying the correct one.
03. There is no crime in asking.
Suppose, you have made up your mind that you are buying a car. You have selected the model, taken the test drive. You have decided the model. You just need to bargain a bit for the insurance services and discounts to the sales representative.
Be clear of what you want: Explain your sales representative what you want and how much you want to spend in crystal clear way so that they can understand your requirement. If you can convince the sales man you can get a better discount.
04. You are not bound to renew your insurance from the same provider.
It’s not mandatory for you to renew the insurance from the same provider from who you previously bought.
Several providers provide different terms, services and policies. Before renewing or buying insurance you must check with different providers for the best insurance terms. This will not impact the potential cost.
- You must compare insurance Premium quotes of each provider before buying the insurance. You may get certain good offers.
- Apart from that policies of each provider in market changes during regular interval of time.
05. Knowing About the No-Claim Bonus (NCB)
What is NCB: When buyers do not claim anything on his/her car insurance during the policy/service period, NCB (No-Claim Bonus) comes into picture. It’s a discount that is offered to the buyer for the same.
For each claim-free year, the buyers can get discounts starting from 20% to a maximum of 50% in between 6 years.
- If you are the policy holder, you can transfer NCB from one your old vehicle to new one.
- You can also transfer your NCB from one insurer to another.
- You also get a reward as a token of appreciation for careful driving and good maintenance of the vehicle.
The below table shows maximum discount you can get from NCB in details:
|If you don’t claim in preceding 1 year of insurance||20%|
|If you don’t claim in preceding 2 years of insurance||25%|
|If you don’t claim in preceding 3 years of insurance||35%|
|If you don’t claim in preceding 4 years of insurance||45%|
|If you don’t claim in preceding 5 years of insurance||50%|
There are lot of companies which provide insurance and every policy they provide has certain pros and cons. Not every policy is perfectly good; neither of them is a complete wastage of money. We need to choose according our priority, location, weather and certain aspects.
No car insurance company is perfect. Browse and research about every policy provider before blindly trusting them. Check out reviews and public experiences. So, keep above important points in mind before buying car insurance in India.