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Factors to Consider Before Buying Car Insurance Policy

​​​It has been normally observed that people, before buying a car, invest a lot of their time in reading, researching about car make & model. Only after being convinced that the car they want to buy meets all their requirements and budget they shell out the money from their pocket.

However, it is surprising to note that at the time of buying a car i​​nsurance​ policy, the same individuals choose to stay ignorant. Today, when buying a car insurance has become streamlined and easier, it is sad to observe people are still buying typical standard policies. As a result, they end up paying huge amount for minimum coverage.

Importance of Research while Buying Car Insurance​

With multiple options available in the car insurance in India, buying the right car insurance policy is no less than a challenge. Therefore, before you square down on one motor insurance, it is very important for to do a significant amount of research. Nevertheless, even to carry out such a research you should know what things you need to look for. 

Here we provide you with a guide of things that you need to consider in order to pick the best suitable car insurance policy:

  • Brand reputation: The market image of the vehicle insurance provider​ plays a very vital role. This gives you an idea about how reliable the company is. One of the ways to pick a reliable car insurance provider by looking at its market rank and track record. A car insurance company with bad track record of claim settlement would not be advisable when buying a car insurance policy.
  • Budgeting: Buy what you can afford. As a thumb rule, pick a car insurance policy that fits your budget, for car insurance is a necessity not luxury.
  • Read the policy document: Never sign on any dotted line till you are sure of what you are being offered. Before buying any policy, read the fine print included in the policy descriptions. There might be many clauses mentioned in the policy which can't be overlooked. In case there is any doubt, don't hesitate in asking your insurance provider for a doubt now is better than an unexpected problem later.
  • Network garages: The whole purpose of a car insurance policy is protecting you from any financial contingency in case of any damage/loss of your vehicle. And one of the best ways to avoid such circumstances is by getting a cashless service. However, car insurance companies offer such services only if your vehicle was repaired in a network garage. Therefore, look for companies with maximum network garages available in their list. It would be best to look for a workshop close to your residence which is in the insurance company's network list.

Things to know about car insurance before purchasing policy 

  • IDV
    The IDV (Insured Declared Value) is the current market value of the car which is calculated after deducting the depreciation amount. It is a crucial component of the car insurance policy as it determines the amount of compensation. In case of theft or total destruction of the car, the IDV is offered as "Sum Insured".
  • No Claim Bonus
    When you don't file a claim during your policy period, you will be eligible for a discount on your next premium​ which is referred to as a No-Claim Bonus. This discount will keep increasing progressively for each claim-free year until the car insurance premium is reduced up to 50%.
  • Different kinds of add-on covers available
    We offer a wide range of add-on covers to ensure superior protection from a variety of risks. You can opt for add-on covers such as Nil Depreciation Cover, NCB retention cover (avail the NCB despite registering a claim), Personal Accident cover (covers personal damages), electrical/electronic accessories cover and many more. Refer to our add-on cover section, for more details.
  • Zero Depreciation Cover 
    You may already know that the monetary value of your car reduces overtime. This eventuality is a result of asset depreciation. Nevertheless, with Reliance General Car Insurance policy​​, you can combat the losses of depreciation by taking up a zero depreciation add-on cover along with your car insurance. With a zero depreciation cover, you can be assured that the entire claim amount will be paid to you without deducting the depreciation sum.​

A well thought, planned car insurance would not only protect you from financial contingency but also take care of any damage to your dream car. A good car insurance policy offers your vehicle risk coverage against unforeseen events like road mishaps, burglary and/or natural disasters. Therefore, to make the best use of your car insurance, plan your policy and buy the one that suits your needs the best.