What goes through your mind when you look at, let’s say, a Reliance car insurance advertisement? Or just vehicle insurance, in general?
The Indian Road Safety Act demands that every car owner buys at least a basic policy for certain risks. And yet, more than 60% vehicles (including cars, bikes, and scooters) in India are not covered by any insurance. Ever think why?
Not everyone is expertly versed in the insurance technicalities. Many consider it a formality. Many just go for low premiums without thinking much about the advantages or drawbacks in the long-run.
So, whether yours be an issue regarding an online car insurance renewal or new purchase, here is how you can avoid getting a bad deal.
1. Pick One Beforehand- Comprehensive or Third Party Car Insurance
Online or otherwise, you have to decide what you want in a policy before you set out to measure your options.
A third party policy has low premiums, is mandatory by law, and best suits a car with little market value. It covers any damage caused by your vehicle to anybody. But, any injury to you, your automobile, or the passengers in it, will not be offered.
A comprehensive one, however, covers damages to the car, driver, and passengers, as well as any third party involved in the accident. It’s highly recommended if the vehicle is less than five years old.
You can also apply for a claim in the case of theft, natural disasters, fire, or vandalism. The premium may be high depending on the total additional covers and benefits you opt for, like add-on covers for depreciation, car parts, etc.
2. Don't Ignore Voluntary Deductibles
With a deductible, you share any repair/injury costs with the insurer. For instance, if you agree on a 20% deductible, you’ll pay 20% of the claim before the insurer can provide the rest 80%.
Only, deductible inversely impacts your premium. For higher deductibles, the premium goes down and vice versa. It’s an excellent way to save money if you are a cautious and alert driver or can set enough funds apart to bear your part of losses while claiming insurance.
3. Don't Choose a Car Insurance Policy Just for Low Premiums
Let’s assume there are a few Reliance car insurance policies you like. Should you go with the one which has the lowest premium? No.
Less expensive policies aren’t always beneficial. You need to consider more than just what you’d be paying. Here is a list of factors which determine how much your insurance would cost you.
- Vehicle-related risks- Safety rating, model, market value, fuel type, etc.
- Driver related risks- Your driving record, credit history, age, route, driving frequency, the crime rate in your residential area, etc.
- Policy-related factors- Additional coverage, deductible, claim history, etc.
However, it doesn’t mean you should give up on trying to lower your premium. Shop around. Compare different policies. Figure out the discounts you can avail, like low mileage, fuel-offers, or group covers.
Your aim, when looking for a car insurance, Reliance or otherwise, should be to fit as many benefits you need in as low cost as possible.
4. Don't Simply Agree to Buy a Dealer Car Insurance
Reliance on a car dealer in the matters of accident cover could backfire.
Insurers often tie-up with automobile manufacturers. Dealers would then bundle the insurance with the deal. But, without enough research, how do you know you aren’t being duped into paying extra for the policy?
So, ask for the policy’s price. Then, search online for a cheaper deal or a better plan. Compare online insurance, payment options, add-ons, features, claim history, etc. before you pick one.
5. Learn to Determine Covers and Additional Riders
Go through any Reliance car insurance reviews. Read online feedback about a few others. You’ll discover that no policy explicitly covers every risky area for a vehicle. You’ll need to pinpoint the ones you need and tell your insurer.
Personal Accident Cover
In case of any mishap which either kills or disables the driver or any of the passengers of your vehicle, this cover could compensate for the hospital and medical treatment costs.
Nil Depreciation
With time, the market value of your car decreases. The depreciation rates are calculated on every car part, like plastic, rubber, tube, airbags, fiber, etc. If you don’t choose the Nil Depreciation add-on, your settlement amount will decrease as per the depreciation rate.
Total Cover
A Total Cover, a Reliance Car Insurance specific feature, reimburses you without any depreciation cuts, as well as without deducting the registration cost and road tax.
Other Add-Ons
- Road assistance
- Engine cover
- No-claim bonus
- Key replacement
- Theft of belongings from a locked car
Oh, and Never Fall for the 'Best Car Insurance in India' Line
There is no car insurance, Reliance or otherwise, which fits everyone. Your needs differ from others. Your credit rating, vehicle model and make, driving habits, cover requirements, and budget are specific to you. So should be the car insurance policy you buy.
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