7 Tips To Choose A Premium Car Insurance Policy

• Posted by Aditya Sehgal October 4, 2018 - Filed in Business - #Car Insurance  #Car Insurance Policy  - 474 views

  Not only is car insurance a necessity, it also acts as a financial safety net in case of an unfortunate event. The right coverage can meet almost all your needs, should there be an untoward incident. While you could go ahead with the bare minimum that is mandated by the law, you could also pick a comprehensive policy that covers all damages to your car.

  However, like other financial products, car insurance policies require careful consideration. Here are a few tips that will help you select the best car insurance policy:

  • Decide which type of car insurance you need

  Comprehensive car insurance is usually the right fit if you have a high-end car (that’s still relatively new) or have got the vehicle financed. On the other hand, if your car is comparatively cheap and you want it insured only against major liabilities (such as a faulty vehicle or causing damage to other’s property), then you could opt for a third-party coverage.

  

  • Research on the insurance company

  Find out essential details of the insurer such as ratio of claims to settlements, market standing, reputation and customer reviews. Now that you can also compare car insurance online, this easy exercise can help you eliminate offers that don’t sit well with what you are looking for.

  • Good customer service

  You might not consider this as important while going for an insurance policy, but in retrospect, it is an important part of the claims settlement process. The insurer needs to be easily accessible during emergencies and should be able to fix any issue, quickly and efficiently. One way to settle this is to call up the respective department and see whether the help on offer is good enough for your grievance.

  • Consider extra benefits on offer

  All policies aren’t created equal; while few could be minimal, others might be more rounded and offer that extra bit to you in an adverse circumstance. Some extra benefits include accommodation if you suffer any loss while on a holiday or providing a vehicle on rent in case of vehicular theft. When you compare coverage policies, make sure you look at the features and benefits in their totality and tally them with your list of needs and objectives. Don’t base any comparison on price alone.

  • Get your policy tailor-made

  Increasing competition in the market is forcing insurers to move away from the conventional ‘one-size-fits-all’ approach. Rather, you have more freedom now to include clauses in your policy which you think could be helpful. Suppose if you decide to cash in on a discount (considering you might have driven much less as compared to an average driver), it could open the gate to increased savings.

  • Is using genuine parts during repair a concern?

  If you own a high-end luxury car and want only genuine parts to be used while the repair works are going on, you can choose a policy accordingly. Genuine parts are usually used by the car maker to retain the authenticity of the vehicle in terms of its underlying construction and the components used. However, if genuine parts aren’t really your concern, you can go for a cheaper policy that stipulates ‘aftermarket’, or third-party parts to be utilized. Keep in mind that using ‘aftermarket’ parts is perfectly advisable, considering they have been declared fit for usage.

  • Prioritize frequency of payments

  Shelling a lump-sum annual premium for your insurance might not be the easiest of propositions for the simple reason that it can dent your budget. An alternative for this could be to go for a policy that allows you to spread the payment over a number of installments throughout the year.

  Given all the above inclusions are accounted for, picking a policy with a comfortable premium amount will help you keep your budget in check. Make sure the coverage cost is not the only barometer you set.

   

  Related Read: ADVANTAGES AND TIPS OF BUYING CAR INSURANCE POLICY

   

  The Bottom Line

  A car insurance policy is often the first thing one must buy after purchasing a car. It also needs to be renewed every year. Follow the above discussed few tips that help you make the best decision to choose the best car insurance policy.