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Factors to Consider Before Buying a Car Insurance Policy

Accidents can happen when you walk on the road or drive a vehicle. Whether it was your fault or somebody else’s, it can damage the automobile you own. That’s where insurance helps by covering the damages. There are both car and two-wheeler insurance options available.

A car insurance policy is a legal contract between two parties, where one is insured, and the other is the insurer, covering the damages caused by an accident. There are different types of policies and coverages. Each type has its pros and cons. Before finalizing the right insurance policy, let’s explore the factors that should be considered.

Factors to consider while selecting a car insurance policy

Every car owner must have at least third-party insurance.

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  • Risk assessments: consider issues such as car theft, whether an area is prone to flooding, and whether the road you’re traveling is prone to accidents.
  • Brand recognition: the brand of the insurance company must be considered.
  • Coverage provided: Buying insurance because it is necessary or to save money, the second option is better.
  • Cashless Facilities: A cashless facility refers to the insurer paying the claim amount directly to the garage, leaving you to pay the balance. The insurance company you select should be connected with a group of garages to take advantage of the cashless facility.
  • The value of the asset and the premium to be paid are related: the higher the current value or the insured declared value of the car, the higher the insurance premium; the lower the value of the asset, the lower the premium.
  • Comparing the car insurance: compare the car insurance online before buying it to know the pros and cons.
  • Risk sharing: The premium will be lower if you share the risk with the company. This is known as voluntary deductibles.
  • Claim settlement ratio: Claim settlement ratio refers to the ratio of the number of claims raised to the number of claims settled by the company.
  • Changing the network provider: While finalizing the policy, note that you must make a lifelong commitment. If you don’t like the services, you can switch to another company at any time.
  • Hassle-free claims: the insurance company should be able to provide the claim without too much hassle, or what is the point of choosing that policy?
  • Customer-friendly services: services provided by the company must be customer-friendly.

Budgeting: Do not let your money slip through your fingers. A proper budget will allow you to select only the necessary add-ons rather than purchasing everything.