Questions to Ask Before Buying Car Insurance

Updated Oct 14, 2023

Questions to Ask Before Buying Car Insurance

Purchasing car insurance is a process unique to every car and every car owner. It is important to be aware of the various factors that will impact the insurance policy and to have knowledge about the different features of it. Here are some important questions to ask yourself when purchasing car insurance:

What is the Insurance Coverage Offered?

It is imperative to be aware of the coverage offered by the car insurance policy you are purchasing. For example, accident insurance will offer coverage for road accidents also known as collision accidents. Other types of insurance would also offer coverage for different types of mishaps or non-collision accidents such as fire or theft of the car. Third-party insurance is mandatory to purchase by law, in addition to which you may purchase comprehensive car insurance which will offer you standard insurance coverage for your car.

Which Add-ons are Needed?

Car insurance add-ons are a means of extending the coverage offered by your standard car insurance policy. These are features designed for specific scenarios wherein you may require additional coverage of a variety that is not covered by your comprehensive car insurance policy. For example, the Return to Invoice add-on cover will ensure that in case of theft or total damage, you are compensated with the total amount that you paid for the car, and not just the IDV which is the market rate for the car and depreciates with time. Other car insurance add-ons may include things such as accessories cover, or passenger cover. They allow you to tailor your policy to your needs. It is important to note that they are available at an additional premium, but are advisable as they will save you money at the time of raising claims.

What Deductibles are Applicable to the Policy?

When a car insurance claim is raised, you as the policyholder would have to pay a certain amount of the claim amount. This is known as the deductible. Some amount of deductible is mandatory. However, additionally, you may also pay some amount of voluntary deductible. This would increase the amount you pay in case of a claim, but importantly would fetch you a discount on the premium amount.

Are There any Discounts Applicable?

Various discounts would be applicable at the time of purchasing a car insurance policy. For example, if you have taken any proactive step such as installing anti-theft devices approved by (Automotive Research Association of India), this will reduce the risk of theft of your car and will likely reduce the premium amount. Further, at the time of renewal, you may be eligible for No Claim Bonus, which gets you a discount down the line if you have not raised any claim during the policy period.

Conclusion

It is important therefore to be aware of all the important aspects of your car insurance policy and the factors which may influence your coverage and the cost of your premium. By keeping in mind the above mentioned questions, you can ensure that you receive the policy that is best for you. It is important to tailor your policy according to your needs, by selecting exactly the coverage you require and being aware of all the discounts you may avail.