Are you planning to buy a car insurance plan? Have you zeroed in on a particular policy with your preferred insurance provider? If yes, then you must be all set to get the plan. But wait! There still are a few points you need to ponder over and there are some important questions your insurer needs to answer. Read on to know more.
Understanding the concept of liability
Before you buy a car insurance plan, make sure you understand the concept of liability. At the time of a claim, your insurance provider is liable to make various payments. These include:
- Legal liability: If a third party sues you over an accident involving your vehicle, the insurer is liable to reimburse your legal expenses. This is one of the most important liabilities under an automobile insurance cover.
- Third party liability: A basic third party cover is legally mandatory in India. Under this, your insurance provider is liable to compensate a third party for the damages caused by your vehicle in a mishap.
- Own vehicle liability: Under a comprehensive car insurance plan, the insurance provider is liable to compensate you for the damages sustained to your own vehicle. This liability coverage is not present in a third party cover.
Once you know what your insurer is liable to compensate you for, you can make more structured queries. This will help you in getting the claim settled in a quicker manner.
The next important concept in motor insurance is coverage. You have to be crystal clear about what your policy covers before you make a claim. There are mainly two types of motor insurance cover are:
- The third party cover – Here, only the third party damages are compensated by the insurance provider. You cannot seek compensation for the damages to your own vehicle. The Indian law makes it compulsory for you to buy a basic third party car insurance cover before you start driving your vehicle.
- The comprehensive cover – In a comprehensive car insurance plan, you get all the covers of a third party plan. In addition, you also get protection for your own vehicle. So if you need to make a claim after an accident, a fire damage or even a theft, the insurance company will honour it and pay out the claim amount as per the terms and conditions of the policy to you. A comprehensive cover is a larger and a more wholesome type of car insurance that you must definitely consider getting.
It is vital for you to understand what your car insurance plan covers. If you have a third party cover and make a claim for your own vehicle, the claim will be declined. So got through the policy wordings properly before you buy a plan to ensure you get the exact cover that would be beneficial for you and your vehicle.
Common questions to ask your insurer
Let us quickly glance over some common questions that people ask their insurance providers regarding car insurance:
- What are the documents needed for car insurance?
- What are the exclusions of the car insurance policy?
- What is the car insurance claim process?
- What will the car insurance premium be?
Make sure you ask these questions to your insurance provider as well, much before you make a purchase. You should get satisfactory answers. If you are not satisfied, look to buy the policy from a different insurance company. Thankfully, there are some excellent general insurance companies in India that offer some of the best and the most economical motor insurance plans that you can benefit from owning.
So as you can clearly see from the points mentioned above, clarity is the key to finding and using a car insurance plan effectively. Do not blindly buy a car insurance plan simply because your friend referred it to you. Go through the features of the plan and compare it against the other available options. Only if you are satisfied with the results, make a purchase. Your insurance provider should also be available to answer questions and solve your queries. Once you find a good plan from a good insurance company, you will have a comprehensive and wholesome car insurance cover that will aid you in every possible way.