Factors To Consider While Choosing A Motor Insurance Policy For Your Car


India has one of the fastest-growing and most promising automobile markets amongst all south-eastern countries in Asia. Demand for private vehicles is rising across the nation as an affordable yet convenient mode of transportation for everyday duties.

It has also created a massive market for car insurance policies. The Government of India also mandates every vehicle should have a valid insurance cover to drive on Indian roads.

Importance of four-wheeler insurance policy

A car insurance policy offers financial assistance if a policyholder is involved in an accident or suffers from any damage sustained to his or her vehicle. An insurance provider covers for such financial loses against a premium payable for a certain time.

There are several insurance providers, including NBFCs like Bajaj Finserv, that offer feature-rich motor insurance policies to prospective customers. These insurance providers also offer some of the best deal against the premium, making these types of schemes exceptionally useful and beneficial for all types of cars.

However, there are certain factors one should consider before purchasing such an insurance policy. Considering these will help you select a financial product as well as the insurance provider that best fulfils your requirement without straining your personal budget.

Here are some of the things you should remember before you buy a car insurance policy:

  1. Check company history –

You should carefully consider aspects like claim settlement ratio, number of clients, time taken to process claims, etc. to decide whether a financial institution will be ideal for your insurance policy or not. Companies with a low claim settlement ratio or abnormally longer processing time may not prove a viable option as they might fail to process your request in time. That will give rise to unwanted issues and financial burdens that you will have to pay for.

Factors like the claim settlement ratio (CSR) shows how many claims have been fulfilled by that company with respect to the total number of claims they have received till date. Companies like Bajaj Finserv always have a good settlement ratio. You can check an insurer’s CSR from the official website of IRDA.

  1. Availability of add-on covers –

Add-ons are features not included in the basic policy but are useful to enhance a particular insurance scheme. Well-known financial institutions often have a large number of add-ons to offer, especially for common insurance plans like third party car insurance policy.

Add-ons can include third party liability cover, roadside assistance, financial assistance for car breakdowns, zero depreciation cover, etc. You will have to add a certain amount over your basic premium for every add-on; however, a good financial institution will maintain a balance between the added features and annual premium for better beneficial coverage.

  1. Customer service –

Customer service is another key aspect you should consider before you buy car insurance policy. It is imperative that you select an insurer with credible customer support. They will act as a line of communication between you and the organisation in case of an emergency. Perform a thorough research on the organisation before you choose to associate with them; look for the availability of online services, reviews, service team, etc.

Making an informed decision while selecting a particular insurance provider for your vehicle is one of the most crucial things you should consider. Following these factors mentioned above will help to make the same.

Financial products like a car insurance plan are an important investment for every car owner. Carefully selecting both the product and the insurer will ensure you reap the maximum benefit against your money.

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