India has one of the highest road accident rates in the world. On that count alone, it makes perfect sense to have auto insurance for your vehicle. Also, it's a legal requirement to have vehicle insurance in India.
With stiff competition in the auto insurance market, buyers are often flooded with numerous policies and options. One should carefully choose his insurance provider and select a cover that fulfills his requirements.
In case you are looking for a guide to help you get started on the nuances of auto insurance, you have just found one! Read on to know more.
Points to Remember
Before selecting an insurance provider, it would not hurt to conduct some research on the internet - surely the best way in this age of information superhighway. Check for the following crucial aspects:
What is getting covered?
Remember, all insurance companies do not offer the same type of coverage plans for your vehicle. Look carefully for what is covered under your policy and what is not. A lower rate of premium can never be the only criteria. Though attractive, a lower premium rate is generally offset with numerous exclusions for accident coverage. In such cases, you will have a lot of heartburn in the unfortunate event of an accident.
Some local insurance companies do not cover out-of-state accidents. Keep all this in mind before selecting your insurance provider.
How reliable is your choice?
In insurance business, reliability matters a great deal more than in any other business. This is because when you buy auto insurance, you get into a long-term relationship with that company. So it becomes imperative that the company is financially sound and can be trusted to honor your claims if/when the need arises. To gauge reliability of a company, ask your friends and family or look for feedback on the internet.
Jargons, Jargons and Jargons
It certainly helps to know various auto insurance jargons before you get in the market. After all, you are putting your hard earned money and if you know the terminologies, it enhances your knowledge about the insurance domain and keeps you in a better position to bargain for the best deal.
Third Party Insurance:
Third party insurance, compulsory under the Motor Vehicles Act, 1988, covers any liability that may arise in case your vehicle unfortunately causes bodily harm, fatal injury or property damage to another.
Own Damage (OD) Insurance:
This covers damages to your vehicle due to accidents, natural and/or man-made calamities. Though not compulsory, OD insurance is advisable as it financially safeguards the owner-driver from unforeseen vehicle related losses.
Agents and Brokers:
While insurance agents are the ones who usually work for one company, brokers deal with multiple companies. Agents would know the best deals offered by their company; on the flip side, you might be stuck with just one company and may not know about other offers. Brokers, on the other hand, provide a choice of selecting the best offer to suit your need. However, brokers are often motivated to sell products that give them the best commission. This means if you are not careful, you may end up buying a policy that benefits not you, but your insurance broker!
Auto insurance plans serve as a critical aspect of your vehicle's maintenance. Go ahead and select a plan that offers you and your vehicle an enhanced cover for a better and smoother driving experience.
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