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What Should You Look for in an Auto Insurance Company?

If you follow the above mentioned points carefully, you can definitely get the right auto insurance company and auto insurance plan for your car.

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Waymo, driverless cars, car insurance
New car buyers will compulsorily have to subscribe to third party liability cover for 3 or 5 years.

If you own a car, then you need to safeguard your car with auto insurance. The auto insurance covers you and your family in the event of accident. You need to know about the damages and other things that the auto insurance could cover. You should ask necessary questions to your auto insurance company ahead choosing the auto insurance plan for you.

We cannot say that, everyone gets hold of some experience in choosing the right auto insurance company or auto insurance plan. It is you that has to explore different types of auto insurance companies, its quotes, its plans and more to choose the right one for you. The following points will assist you choose the right auto insurance for you.

Car, insurance
The limits and coverage offered by the auto insurance companies will vary. Pixabay
  • Your first step in choosing the auto insurance company is that, you need to determine the type of the coverage you need. The scenario of people that choose to have auto insurance will vary from one to another. It is you that has to choose the auto insurance that suits you. Take, for example, if you have less than perfect driving records or past credit issues, then you need to compare the auto insurance quotes from companies who can afford customers a second chance to get discount on auto insurance.
  • Next is that, you need to go through the rewards that you can get if you possess good driving records. The best auto insurance company will customize its flexibility when it comes to choosing the coverage options and incentives. You need to go through the terms and conditions of the auto insurance company’s policy on discount auto insurance rates to those that possess a good driving record.
  • As you all know that, the rate of the auto insurance will vary from one plan to another, one country to another and one company to another. Yes, the American insurance companies may be less expensive while comparing to other insurance companies on other countries. It is your duty to compare the auto insurance rates by taking enough time. Make sure to choose the best company that could offer you the best rates for your auto insurance.
car insurance
You need to choose the auto insurance plan that offers the coverage what you actually require for your car.
  • Of course, there are different types of auto insurance plans to choose from, which include third party insurance, liability insurance and more. Among that, you need to choose the auto insurance plan that offers the coverage what you actually require for your car.
  • The limits and coverage offered by the auto insurance companies will vary. You need to ask or confirm about what the boundaries of the auto insurance company are in terms of coverage, so that, you can decide whether or not to choose this company for your auto insurance.
  • At times, if you are offered a low premium rate by the auto insurance company, then who knows the coverage could be minimal. To be on the safer side, you need to read through all such points and limitations of the auto insurance plan ahead choosing the one for you.
Car, insurance
It is you that has to explore different types of auto insurance companies. Pixabay
  • If you possess a recreation vehicle, then you need to have its own insurance. The insurance for the recreation vehicle and auto insurance are not same as you think. Your car may be comprehensively insured by the auto insurance company, but your recreation vehicle would not get such a coverage what you car gets.

Also Read: How to Choose The Best Term Insurance?

  • Make sure you gets hold of all such legal documents that you need to submit to get the full comprehensive coverage for your car. If you do not have any idea about what the documents are that you need to submit to the auto insurance company, you can explore those things on the internet and get handy of it.

If you follow the above mentioned points carefully, you can definitely get the right auto insurance company and auto insurance plan for your car. Make sure to choose from various auto insurance policies.

Next Story

How to Choose the Right Car Insurance Policy

Various aids like car insurance premium calculator and 24/7 assistance for Bajaj Allianz Car Insurance renewal, helps you to choose the right car insurance policy.  

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Tesla, car insurance
A sales staff chats with a customer at a Tesla store near a poster announcing orders of the Model 3 electric cars in Beijing, China, Monday, Jan. 7, 2019. VOA

Buying a new car is always an event in a family or an individual. The joy of purchasing a car should be accentuated with a matching car insurance policy. Apart from the customary “Nimbu-Mirchi-Totka” to safeguard from an evil eye that is a ritual with any new purchase in India. It lifts the spirit, but on the ground, as you drive your favourite car on the road, you are mandated to protect yourself from the vagaries of unforeseen events. The Motor Vehicles Act, 1988 has made Third-Party Insurance compulsory for all motor vehicles on the road in India.

The need for car insurance:

The practice in India is that your car dealer includes the insurance policy in the purchase package of your new car. Though he acts as the facilitator, it is in your interest to be aware of the nuances that go into car insurance to protect you from financial losses in case of an accident. The car insurance not only covers for third-party losses but also for own damage.

Car Insurance
Directly dealing with the insurer secures you a lower premium on several features including savings on overheads that is passed on to you. Flickr

Types of car insurance:

There are broadly two types of car insurance:

  1. Third Party: This insurance policy is compulsory and compensates the victim from losses incurred on collision with your car.
  2. Comprehensive: In addition to the third party, it protects you from own damage due to the collision, personal loss and other damages by both acts of man and god.

Add-on covers:

These are necessary to enhance coverage of your car insurance. Some of the add-ons are enumerated below.

  • Zero depreciation: Covers replacement of plastic and other eligible parts ignoring the depreciation with age of the car.
  • Engine cover: For the protection of the engine from damages due to extraneous factors like flooding.
  • NCB: To continue with the year to year discounts for NCB in spite of claims in the previous year.
  • Invoice Cover: The compensation is to the tune of on-road price or full IDV in case of theft or total damage.
  • Key and lock replacement: Covers for loss due to loss of the key.
  • Round the clock roadside assistance.
  • Consumables: Covers for consumable items in the car.
  • Personal effects: Loss of personal baggage in the car.
Car Insurance
Computation of IDV is important. Lower IDV will reduce the premium, but will also impact by lesser compensation. Flickr

Inclusions in car insurance:

  • Own car damage in accidents.
  • Personal cover for death or disability due to accidents.
  • Cover for loss in natural disasters.
  • Cover up to IDV for theft.
  • Cover against human-made acts like fire, vandalism etc.

Exclusions in car insurance cover:

  • Damage caused while driving under the influence of alcohol or drug.
  • Driving without a valid license.
  • Damage suffered during involvement in illegal acts.
  • Damage out of war or nuclear risks.
  • Damage due to normal wear and tear.

Car Insurance Premium Calculator:

When opting for a preferred comprehensive insurance policy, the fundamental components that determine your premium by the car insurance premium calculator are:

  • Third party cover.
  • Own damage cover: It may vary depending on the follows.
  • IDV (Ex-Showroom price plus depreciation)
  • The capacity of the engine
  • Location of the RTO where registered.
  • Personal accident owner-driver cover.
  • Add-ons: This is variable depending on the choice.
  • GST at 18% presently.
Waymo, driverless cars, car insurance
New car buyers will compulsorily have to subscribe to third party liability cover for 3 or 5 years.

Long-term Car Insurance Policy:

IRDAI has prodded insurers to issue long duration policies for vehicles from 1st September 2018, consequent to the directive of the Supreme Court. Thus new car buyers will compulsorily have to subscribe to third party liability cover for 3 or 5 years. While these increase the cost of policy due to the upfront payment, in the long run, it works out to be economical. However, on the flip side, you lose out on annual discounts based on NCB.

Claim settlement ratio:

While buying a car insurance policy, you need to factor in the claim settlement ratio of the general insurance companies. Of the major insurers, Bajaj Allianz Car Insurance Renewal makes sense as they have consistently been in the top bracket with good claim settlement ratio.

Ways to reduce car insurance premium:

Even while you chose your policy meeting your needs, some factors may still impact the amount of premium. The various ways to lessen the premium are:

Car, insurance
Buying online insurance in UAE entitle the insurance buyer to avail exclusive offers and discounts. Pixabay
  • IDV: Computation of IDV is important. Lower IDV will reduce the premium, but will also impact by lesser compensation.
  • NCB: This factor can benefit you with up to 50% discount.
  • Security devices: Installation of ARAI approved devices like anti-theft can fetch you up to 2.5% discount.
  • AAI: AAI membership fetches you a discount on Own Damage component of premium.

Online purchase of Car Insurance:

Among the many options, the best option is to buy or renew your premium online. Let us see how it benefits:

Also Read: Insurance in 10 Years Time: What Will the Industry Look Like

  • Convenience: User-friendly portals make purchase easy from the comfort of your home at any time of the day.
  • Comparison: Multiple plans and quotes can be obtained to land the best deal.
  • Discounts: Directly dealing with the insurer secures you a lower premium on several features including savings on overheads that is passed on to you.
  • Assistance: Online assistance is just a click away.

Bottom Line:

Now that you are aware of all the nitty-gritty of car insurance, you are in a position to arrive at an informed decision. Various aids like car insurance premium calculator and 24/7 assistance for Bajaj Allianz Car Insurance renewal, helps you to choose the right car insurance policy.