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Last Updated : Oct 05, 2018 02:05 PM IST | Source:

Do’s and don’ts while buying car insurance to ensure best deal

A car owner should evaluate a car Insurance on the basis of premium, value added benefits/Add-ons and Customer's experience with Insurance company.

Navneet Dubey @imNavneetDubey

Buying motor insurance is mandatory when you purchase a car. And, with the new rules announced by IRDAI, now the owner-driver will get the personal accident cover of Rs 15 lakh. Secondly, the long-term third party insurance policy is also expanded for three-year mandatory for cars.

The changes aim to provide more benefit to insurance customers. Tarun Mathur, Chief Business Officer- General Insurance, said that this is a long-term benefit for all consumers because it actually looks after the accident case for the owner driver. It will, however, affect the premiums as they may go up by 7-8% of the current cost of the particular product. “With the three-year policy coming into place, there will a question mark on the affordability of long-term insurance but as this is a protection cover, it will genuinely help the customer," he added.

However, often customers who purchase cars do not do their homework while the car insurance is offered to them. They go by whatever is offered by the insurance agent which could result in purchasing cover features that are not needed thereby increasing the cost of purchase.


While purchasing insurance one needs to take into account several factors such as the add-ons that are offered, the IDV, the road-side assistance features and whether the policy includes a zero-depreciation benefit. Thus, one should buy their insurance policy smartly and must understand the dos and don’ts while buying their insurance policy.


== Buy insurance looking at your needs not looking at the number of add-ons. Animesh Das, Head of Product Strategy, ACKO General Insurance said that car owner should evaluate a car insurance on the basis of premium, value-added benefits/add-ons and customer experience with the insurance company. Usually, a car owner will get the best premium through the insurer's website by doing proper research.

== Compare insurance quotes received from the vehicle dealer against quotes from various insurers available on online portals and then make a smart choice. "They should check insurer's website and social network for customer’s reviews. In addition to that, it’s good to evaluate few add-ons like zero-depreciation, road side assistance etc. as per individual's requirement," said Das.

== The best way to curb your expenses is to go with a concept of smart buy where you should not just renew your policy but, you should first review your previous policy and then buy a new one. Evaluate how much IDV (insured declared value) you want for your vehicle because it really helps in adjusting your premium amount at the time of purchasing a policy.


== One must keep in mind that a dealer might try to push insurance plans loaded with unnecessary add-ons for which he receives the highest commission. Do not get into the pressure tactics of dealers and their compulsions and simply buy a policy which they are suggesting.

== Often brokers sell a comprehensive insurance plan which does not include a zero-depreciation cover. Make sure you buy insurance including this cover else you will not be able to claim insurance from bumper to bumper in case your car meets an accident in the future.

== Do not buy insurance without engine cover protection if you are living in a flood zone area.

== Do not sign the document without knowing the deductibles, many times insurance companies ask a certain amount which you need to pay to the company at the time of claim before the rest is paid by them.

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First Published on Oct 5, 2018 11:02 am
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