Buying a car is a dream come true for many of us. It is the result of endless hours of research into the best brands, asking friends and family for recommendations, and endless test drives.
If only we spent half the time researching the best car insurance to protect our favorite pair of wheels! According to research, car buyers can spend from a week to 60 days debating a vehicle, but they often end up buying insurance in just a day. This leaves buyers vulnerable to choosing imperfect options for their four-wheeler insurance.
Consumer Rights Car Insurance: 5 crucial questions to ask your agent
Knowing your consumer rights is important to ensure you have a fair deal. Here is our list of 5 important questions to ask insurance agents:
- What are the policy’s premiums, payment terms, and discounts?
This will help you arrange your finances and check if the premium is affordable. You can also discuss the payment terms, as different companies have different schemes for easy payment.
- What is the deductible?
In case of an accident, car insurance will not cover 100% of the costs incurred. You will still have to pay some money out of your pocket. It is always better to understand how this deductible is calculated so you can plan ahead.
- What is the IDV of my car, and how will it change year-on-year?
IDV is directly proportional to your premium amount, so it is better to understand how changes in the IDV will affect your premium payment.
- What happens if there is an accident?
In this case, you need to know your insurance company is on your side. Understand the process of reporting and filing a claim, the paperwork involved, and the number of days it can take for the company to help you with monetary compensation for your loss.
- Do you have a network of trustworthy garages that can help with repairs?
Usually, insurance providers work with local repair workshops where you can make cashless claims if you are an insurance holder. This also makes the claims process easier and faster.
What You Should Know Before Purchasing Auto Insurance
If you are a new buyer, don’t forget to look for these factors when choosing your car insurance policy:
The type of policy
Depending on the nature of your usage, you can opt for either private or commercial car insurance cover. However, depending on the cover provided, insurance can be further subdivided into two more categories as below.
- Liability of third-party car insurance: This is the most basic car insurance coverage you can get. This insurance will cover any losses incurred by the third party in case of an accident. However, it will not cover the losses incurred by you.
- Comprehensive car insurance: This in-depth auto insurance will cover losses incurred by both parties in case of an accident, loss, or any other damage.
Policy terms
Every buyer is eager to know what a policy offers, but many forget to read the fine print and understand what their policy does not cover. While it’s important to get insurance with comprehensive inclusions, it is just as important to understand the exclusions from the policy.
Insurance riders
Riders provide you with extra protection but also increase your premium costs. A vital rider or add-on cover is bumper-to-bumper car insurance. This add-on provides you complete coverage irrespective of the depreciation on your car parts.
The IDV value
In simple terms, IDV or Insured Declared Value is the car’s total value in the current market. This value keeps decreasing as the car ages. So, a new car will have a higher IDV, and hence a higher amount can be claimed in case of theft or total loss. The IDV value is an important factor in calculating car insurance premiums.
Personal accident cover
You can also add personal accident covers to protect you and your family against any on-road mishaps. This cover also comes with an extra premium charge and is optional.
NCB or No Claim Bonus
If you do not make any claims for a year, the insurance company will give you a bonus (or discount) ranging from 20-50% of your premium on your next renewal. Always ensure this is factored in when you are buying or renewing an insurance policy, as it will help you in the long term.
Important tips for first-time car insurance buyers
- Shop around and check for the best available options.
- Do your homework and know your car insurance rights.
- Understand the different coverage types and choose what you need.
- Make sure your finances are for a long-term premium payment schedule.
- Don’t rush into any decisions!
Conclusion
It is essential to know all your rights as a consumer and choose the correct car insurance plan for your vehicle. The most important aspect is to read the policy fine print, ask relevant questions, compare different policies, and choose the one that matches your insurance requirements and budget. Additionally, opt for reliable providers, such as Tata AIG, that are known for their comprehensive policies, excellent customer service and high claim settlement ratios.
