How to Choose Best Plan for Your Car?

Buying a new car is a big responsibility, not just a source of excitement and joy. Along with the enjoyment of owning a new car comes the responsibility of ensuring that you and your vehicle are properly insured. In India, it is mandatory by law to have Third-Party Liability (TPL) insurance under the Motor Vehicle Act. When choosing a car insurance policy, it is important to consider the coverage that you require and to compare different policies offered by insurance providers. Consider the features and benefits of the policy, as well as the premium cost and the insurer’s claim settlement ratio (CSR). Shortlist your requirements and compare policies online to find the best coverage for your needs. Don’t just go for the cheapest option, choose a policy that offers the best coverage for you and your vehicle.

Acquiring a new car is an exciting event for many families in India, as it symbolizes happiness, fulfillment and the opportunity to embark on planned tours with loved ones. However, in the midst of this excitement, many individuals tend to overlook the fact that owning a car is not just a source of enjoyment, but also a significant responsibility. When it comes to driving a car, one must ensure the safety of themselves and others on the road. In the event of an accident, it is crucial to have adequate insurance coverage for both the car and any third-party involved. Not only is it a responsibility to have car insurance, but it is also mandatory by law to have Third-Party Liability insurance as per the Motor Vehicle Act. There are numerous insurance providers in the market that offer different types of car insurance policies. To make the best decision, it is important to compare policies and find the one that best suits your needs. When shopping for car insurance, it is important to consider the following factors:

  • Shortlist your requirements: Determine what type of coverage you need, such as TPL, IDV, and add-ons.
  • Coverage comparison: Compare the policies available online, keeping in mind that liability only covers third-party losses and damages, while a comprehensive policy offers full coverage, including TPL, damage to the vehicle, and personal accident coverage.
  • Compare IDV: The premium rates are based on the Insured Declared Value (IDV) of the car, which is the current value of the car after a set depreciation. The IDV of a car is dependent on the age of the vehicle, with older cars having higher premiums.
  • Compare Premiums: The premium of the policy is an important factor to consider when choosing the right car insurance policy. While low premiums may seem attractive, it is important to compare the features and benefits of the policy before making a final decision.
  • Compare CSR of the insurer: Before purchasing a policy, it is important to compare the Claim Settlement Ratio (CSR) of the insurance company. It is advisable to purchase a policy from a provider with a good CSR, and avoid companies with low claim settlement ratios. The IRDA releases an annual report on claim settlement ratios, which can be found on their website.

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