What is Car Insurance?
Car insurance is an agreement between the insurance company and the car owner where upon paying a premium, the insurance company will cover any damage/loss of the car upto the pre-decided limit.
In India, it’s mandatory to have car insurance whether one owns a private vehicle or a commercial one. Most car manufacturers and suppliers have an arrangement with chosen insurance companies. This means that the insurer’s plans will be readily available at the car dealer branches or showrooms, allowing them to offer you a seamless experience at the time of purchase.
Types of Car Insurance
Before choosing the right car insurance company, there are two types of car insurance policies –
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Comprehensive Car Insurance:
Comprehensive car insurance is the most preferred insurance plan as it covers both third-party damages as well as your own car damages.
However, some insurance companies might not offer coverage for all damages. It’s best to check the terms and conditions before picking an insurance company.
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Third-party Car Insurance:
Third-party car insurance covers the liabilities and damages caused to a third-party vehicleor covers the death or injury to a third person involved in an accident with the insured vehicle. This type of insurance offers limited protection as it does not cover the damages/losses incurred by the policyholder.
Factors to consider before choosing a car insurance company
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Choose the most suitable option
As mentioned above, there are two types of car insurance policies. Choose according to your needs, factoring in the kind of vehicle use you’re most likely to have.
If you want to protect your own vehicle as well as the third-party vehicle choose the comprehensive plan. If you think you can handle the damages to your own vehicle, go ahead with the third-party plan. Either way, it’s mandatory to have an insurance plan in place so choose one according to your requirements.
2. Comparison is the key
Spending time on research related to the insurance companies you’re considering is crucial to making a wise choice. Take care to compare the plans and the respective benefits that each has to offer. Make a list of requirements that you expect from your plan and choose one that best ticks off most of the needs in your list while also fitting into your budget.
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Customer Service
The main goal of insuring your car is to get assistance as soon as possible when the need arises. Make sure to choose an insurance company that provides 24-hour service with an online grievance facility. It’s mandatory that they have a toll-free number that operates well and is reliable during potential emergencies.
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Claim Settlement Ratio (CSR)
Claim Settlement Ratio (CSR) depicts the number of claims that are settled by an insurance company. This ratio is important to an insurance company because it reflects the reputation of the company in terms of claim settlements. Choose a company that has a good CSR ratio. You can check the CSR ratio of various insurers on the official website of IRDAI.
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Choose the required add-ons for your car
There is a wide range of add-ons that are provided by different companies. The add-ons typically include options such as roadside assistance cover, personal accident cover, zero depreciation cover, and so on. These add-ons are chargeable so choose the ones you want wisely.
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No Claim Bonus (NCB)
When a policyholder doesn’t file any complaint for a year, the insurance company rewards him/her with the “No Claim Bonus” upon the time of renewal. The policyholder might get any additional benefits or discounts at the time of renewal. Make sure to ask your insurer in detail about the No Claim Bonus.
Car insurance is a basic necessity and we cannot skip this process while buying a car. So, make sure to do a thorough check on the insurance company before buying one.
Chola MS meets all the above factors. The customer care process is designed to go over and beyond these factors to offer customer-oriented services such as doorstep pickup and repair, a hassle-free claim process, and unlimited claims until the IDV is exhausted.
