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5 things to consider before buying a car insurance policy

Car insurance is mandatory for all car owners in the country. As a result, most customers generally just go ahead and purchase the most affordable option available in the market, just for fulfilling the legal obligations. However, not researching properly before making an insurance purchase decision can lead you in a lot of trouble. Imagine the unfortunate chance of being involved in an accident and getting to know that your insurance policy, instead of being a blessing, turns out to be a curse. Thousands of car owners have voiced their inability to take advantage from their car insurance policies, just because they didn’t buy the correct policy.

This is why we have collected a list of the top 5 things that you need to consider before buying an insurance policy for your car.

1. Type of policy

There are various types of insurance policies available in the market. They can be primarily classified into two categories: third party insurance and comprehensive insurance. It is important to note that in India, opting for a third-party car insurance policy is mandatory. However, a third-party insurance only provides benefits to others involved in an accident triggered by your vehicle. On the other hand, comprehensive insurance policies not just provide the third-party benefits talked above, but also cover any damage caused to your vehicle and self in case of an accident. Also, depending on the plan you chose, third-party insurance can protect your car from any damage related to fire, theft, etc. Obviously, comprehensive policies are expensive to purchase as compared to a basic third-party insurance.

2. Ease of inspection

Once your car is involved in an accident, it needs to be inspected by your insurance provider’s surveyor in order to assess the damage and approve any claims made. This complete process is a major hassle while dealing with traditional insurance providers. In remote areas, insurance surveyors can take up to 15 days for completing the process.

This is where Digit Car Insurance can make a world of difference, thanks to their smartphone-enabled self-inspection feature. Using this capability in the company’s app, users can check and upload the damages themselves. This feature has gained immense popularity, with the company now claiming to service 95% of their motor claims through the same.

3. Claim approval speed

The turnaround time required for your car to be repaired depends directly on how quick the inspection and claim process is. A regular insurance provider can take anywhere between 10 to 60 days for completing the entire claim approval process, depending on the location of the vehicle and the scale of damages. Over the last few years, technology has helped a few companies to significantly reduce this lag in the process.

Insurance providers like Digit claim to settle over 90% of their claims within 30 days. This can be a big relief for car owners who want their cars to be back to their glory at the earliest.

4. Affiliate / partner networks

Various insurance providers have a network of partner workshops / service centers that their customers can visit for a hassle-free repair process. Having such partners makes the overall transaction flow smooth, thus reducing the trouble that the affected car owner needs to go through. However, searching for insurance providers who have a partner outlet near you is a task in itself.

As a result, certain companies like Digit General Insurance provide an option of advance cash payment to the policy holder. An individual can thus take the affected vehicle to any garage of their choice and pay in cash for the repairs from the amount received via Digit insurance.

5. Add-on covers

It is important to acknowledge the fact that not every car goes through the same conditions during its life span. As a result, a standard insurance policy might not protect all cars with different risk profiles. The owners should thus opt for add-on insurance covers depending on how vulnerable their car is. This will depend on the nature of terrain they regularly drive on, the primary use of the vehicle, how old is the vehicle, etc. We thus recommend opting for add-on covers like engine and gearbox protection, zero-dep cover, breakdown assistance, tyre protection, etc., depending on how probable your car is to take advantage of the same.

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