Smart Financial Planning: How to Choose Affordable Car and Bike Insurance Policies
In India, owning a car or bike is frequently a need rather than only a convenience. But being a car owner comes with more responsibilities than just buying and maintaining one. It also involves picking the appropriate insurance plan that covers all the necessary requirements of the car as well as is suitable for the pocket. Financial planning requires choosing an inexpensive car or bike insurance plan that will cover you without breaking the bank.
In this article, we will delve into the major factors that you must consider when buying vehicle insurance.
Factors to Consider While Buying Vehicle Insurance
Here are some of the factors you must consider to buy affordable vehicle insurance:
1. Figure Out Your Requirements
Consider the kind of insurance that best suits your vehicle and its usage. Determine whether you require only third-party liability coverage or if a more comprehensive plan is necessary.
A third-party insurance policy provides coverage solely for damages inflicted on others. In contrast, a comprehensive insurance plan includes all the benefits of third-party coverage while also covering your vehicle. Generally, third-party plans are more affordable than comprehensive ones. So if you want to buy an insurance policy for car, you must consider your requirements to make the best choice.
2. Find the Insured Declared Value (IDV)
IDV is the maximum amount an insurance company will pay in case of vehicle theft or total damage. It is important to ensure that the IDV matches the current market value of the vehicle. If it is too high, you will have to pay a high premium, and vice-versa.
3. Check for Discounts
There are times when insurance companies provide discounts for their products. If you find a plan that suits your needs and is affordable via a discount, you could buy it.
Membership in a recognised automobile association, the installation of safety features in your vehicle, and purchasing your policy online can all lead to significant discounts. These reductions help decrease the overall premium cost. It's important to note that the amount of these discounts can differ from one insurance provider to another.
4. Compare Insurance Plans
There are several insurance plans in the market. You can go online to compare their terms and conditions, premiums, coverage offered, and claim settlement ratio to decide which vehicle insurance suits you the best. If you want to do bike insurance renewal online, it is better to at least compare your policy with other options before renewal.
5. Claim Settlement Ratio
A claim settlement ratio shows the ratio between the number of claims settled to the number of claims made. The higher the ratio, the more reliable you can consider a company to be. It will ensure that the claim settlement process is fast and without any hassles.
6. Add-ons
Do you need any extra coverage? Considering extra coverages is essential as they significantly influence your purchasing decision. By factoring in add-ons, you can make a more informed comparison of insurance plans.
7. Customer Reviews
To ensure you are making a wise choice, take the time to read customer reviews about an insurance plan. These reviews will give you a good idea about the pros and cons of various insurance plans. It will also warn you about any potential pitfalls in an insurance plan.
8. Type of Coverage
When purchasing car insurance, the kind of coverage you select plays a vital role. Therefore, understanding the different types of coverage is essential when evaluating various insurance plans.
There are three main options: third-party coverage, standalone own damage coverage, and comprehensive coverage. It is important to determine which type suits your needs before comparing different policies.
9. Cashless Facility and Garage Network
Cashless insurance refers to the process where you aren't required to pay any amount upfront when filing a claim. This is made possible because the insurance company has established partnerships with certain garages, allowing them to settle claims directly with these service providers. Insurers with an extensive network of affiliated garages can facilitate cashless transactions smoothly and effectively.
10. Voluntary Deductibles
A voluntary deductible refers to the money you pay when filing a claim. It can lead to a reduced insurance premium. This amount is only required when you actually make a claim; if you don’t utilise your insurance, you will not incur this cost.
The advantages of choosing a voluntary deductible can vary based on several factors, including your driving history, the conditions in which you drive, and the age of your vehicle. For instance, if you have a history of making claims often, the costs associated with the deductible might cancel out any savings you gain from lower premiums.
Bottom Line
Overall, choosing the right car and bike insurance policy is crucial for financial protection. By considering factors like coverage options, deductibles, add-ons, and comparing quotes from different insurers, you can find an affordable policy that meets your specific needs. Remember, prioritising safety and financial security is essential, and a well-chosen insurance policy can provide peace of mind on the road.
Disclaimer: This article is part of sponsored content programme. The Tribune is not responsible for the content including the data in the text and has no role in its selection.
