Purchasing a car insurance or bike policy is a crucial decision every vehicle owner in India must make. With the number of accidents and road mishaps rising, securing your vehicle with the right policy is important. It is crucial to consider several factors while purchasing a policy to ensure that it meets your requirements and provides adequate protection.
However, choosing the right policy can take time and effort with so many options available in the market. To help you make an informed decision, we have listed the top 5 things you should consider while purchasing a bike or car insurance policy in India.
5 Things to Keep in Mind While Purchasing a Bike or Car Policy Online
In today’s digital age, purchasing a car policy or bike insurance policy online is easier than ever. With just a few clicks, you can compare policies from different insurers, choose the one that fits your needs, and purchase it instantly. Here’s a list of the top 5 factors to consider while purchasing a bike or car insurance policy online:
1. Coverage options
When purchasing car or bike insurance online, the first thing to consider is the coverage options available. Choosing a policy that covers your vehicle adequately, based on your requirements, is important. Most insurers offer two types of coverage – third-party liability and comprehensive coverage. Third-party liability coverage is mandatory by law and covers damages or injuries caused to a third party in an accident involving your vehicle.
On the other hand, comprehensive coverage offers protection against damages or losses to your vehicle in addition to third-party liability coverage. You can also opt for add-ons like zero depreciation, engine protection, and roadside assistance, among others, to enhance your coverage.
The coverage offered by the policy should be comprehensive and adequate to cover any damages or losses that may occur due to accidents, theft, or natural disasters. It is important to check the inclusions and exclusions of the policy to ensure that it meets your requirements
2. Insured Declared Value (IDV)
IDV is the maximum amount you can claim in case your vehicle is stolen or damaged beyond repair. It’s important to choose the right IDV, as it determines the premium you pay for your policy. After applying the depreciation value to the ex-showroom price, the IDV is calculated. The IDV is the maximum amount the insurer will pay in the event of theft or total loss of the vehicle.
A higher IDV means a higher premium, but it also means better protection. On the other hand, a lower IDV means a lower premium and lower protection. Choose an IDV that accurately reflects the current market value of your vehicle.
3. Insurer’s Reputation
Choosing an insurer with a good reputation in the market is important. You should research and check the insurer’s claim settlement ratio, customer reviews, and overall reputation. A good insurer will offer better coverage and protection, excellent customer service, and hassle-free claim settlement.
Additionally, you can check the insurer’s track record of claim settlement. You can do this by looking at their claim settlement ratio, which is the percentage of claims that the insurer has settled out of the total claims received. A higher claim settlement ratio indicates that the insurer is efficient in settling claims and has a good reputation in the market.
You need to consider the premium you need to pay for your policy. The premium is the amount you pay the insurance company to insure your vehicle. The premium amount is determined by various factors, such as the Insured Declared Value (IDV) of the vehicle, the type of policy, the vehicle’s age, and the owner’s driving history.
While choosing a policy that offers better protection and coverage is important, you should also consider your budget. You can compare policies from different insurers and choose the one that offers the best value for money.
5. Customer service
Lastly, consider the quality of customer service offered by the insurer. In case of any queries or doubts, you should be able to reach out to the insurer’s customer service team easily. The customer service team should have the proper knowledge and be able to provide accurate information regarding the car policy or bike policy, premium claims process, and other related issues. Look for insurers that offer 24/7 customer support, multiple channels of communication like phone, email, and chat, and prompt resolution of queries.
Purchasing a car insurance or bike policy in India requires careful consideration of various factors. It can be a hassle-free experience if you consider the factors mentioned above. Always choose a policy that offers adequate coverage and affordable premiums and is offered by a reputable insurer with a high claim settlement ratio and excellent customer service.
With these considerations in mind, you can protect your vehicle against unforeseen damages or losses. By understanding these factors, you can make an informed decision and choose a policy that offers the best value for your money.