Fortunately, there is no shortage of excellent auto insurance companies or policies in India. So when it comes to financial security for your beloved vehicle, you have a variety of options to choose from. Each approach offers different benefits and features limited to a specific group of consumers.
Factors To Look Out For When Buying Car Insurance
Look for the following characteristics of an insurance company to understand if it’s right for you:
Brand awareness: Thanks to the internet, this is easy to measure these days. You can search online for the insurance provider in question and see the public rating. It should help you assess whether existing policyholders are happy with your choice.
Requires Irdai Approval:
The Regulatory and Development Authority of India or IRDAI is responsible for overseeing and developing the industry in the country. Therefore, businesses registered with this central authority are more likely to follow all policies when processing insurance claims. Also, it is safer to choose a registered company as fraudulent activities are excluded.
Car Insurance Premiums:
While financial security is essential in an accident or theft of your car, there isn’t that much you can invest in your annual car insurance premiums. However, aggregator portals allow you to compare prices between products from different companies, giving you a better idea of the average price of those insurance policies.
Claims Payout Ratio:
A general insurance company’s claims payout ratio shows what kind of assistance you can expect from the provider in the event of an emergency. A high claims settlement rate indicates that a company settles most claims made by policyholders. But, of course, a lower claims settlement rate is undesirable.
All insurance companies allow cashless repairs in selected workshops and shops. However, a more significant number of seminars in the network ensures that you will always find one near you. Therefore, it is advisable to choose companies that offer a considerable number of options for cashless outlets.
Fast And Convenient Claim Process:
Nobody likes to jump through hoops every time they have to make a claim. Therefore, it would help to choose an insurer whose claims reporting and settlement process is easy to understand, both in theory and in practice. Companies that offer a digital claims process can be beneficial here to simplify the process.
Why Buy Car Insurance From Direct Insurers?
Most persons tend to buy car insurance from their car dealer. However, this can put a financial strain on you and prevent you from taking advantage of your benefits.
Here are some details of why it makes more sense to buy a policy directly from an insurance company:
Ability To Customize Insurance Policies:
Dealerships often sell pre-packaged insurance policies that come with a variety of features. Therefore, your ability to customize the policy to suit your needs is almost non-existent.
Plenty Of Options And Choices:
Auto dealerships typically have partnerships with just a handful of providers. Therefore, when you buy from them, you are limited to only choosing a policy from these companies and not others in the market.
No Additional Premium Payments:
Dealerships work with insurance companies on a command basis. It means that when a policy is purchased at a given rate, the dealer keeps a portion of that amount. When buying directly from the companies, you only pay the actual price of the policy you have chosen and no more.