Whether you buy a brand new car or a second-hand one, the first thing you should do is invest in a good car insurance policy. You can choose from a wide range of coverages offered by various insurance providers. While a good insurance company is one that offers a wide range of products choose from, you also need to consider a few other aspects when you choose your insurance provider. Here are a few qualities that make a car insurance provider worthy of your investment.
One who charges a fair premium: Your insurance company determines your insurance premium based on many factors such as the make, model and age of your car. Your driving skills as well as additional risk factories such as your tendency to be involved in accidents are also taken into consideration when premiums are calculated. These changes are incorporated from time to time after the car insurance company evaluates your risks. If you have been a safe driver and are hardly ever involved in an accident, then your premium amounts should stay, more or less the same, and only increase when your car begins to age. However, if you know you’ve been in accidents, then your premium may go up, but that is only fair to both, you, and your insurance provider.
One who offers great coverage: Different car insurance companies in India offer different benefits and coverages. Remember that a basic insurance policy does not offer all-round coverage. You may need to include various types of add-ons even if you opt for a comprehensive cover. These include engine protection, personal injury cover, and collision cover and so on. At, the end of the day, you should feel that you are getting your money’s worth, even if the premium is slightly high. Its simple math, if you want better coverage, you need to shell out a bit more to get all-round coverage.
One who offers exceptional customer service: One of the most basic reasons why people purchase insurance is to get help when it is needed the most. Whether your purchase car insurance online or through an agent, you must ensure that you choose an insurance provider who has a reputation for offering good customer service. Remember that customer service is the only thing that counts when you are in a situation of duress. Consider an insurance provider offering round-the-clock assistance, and check reviews to see the quality of service offered during stressful times. Whether you need road side assistance, assistance to lodge a complaint in case of an accident or theft or just understand the claim process, your insurance provider should be able to assist you whenever the need arises.
One who has a good claim settlement ratio: How well an insurance company is treating its customers can be assessed through the company’s claim settlement ratio. You can find this information on the website of the car insurance provider. Look for the different ratios related to claims and check how soon the company is settling claims. Also, check and understand the reasons for claim rejections, so that you know your do’s and don’ts while filing claims. A good insurance provider is one who has a high claim settlement ratio with a short turn-around time.
Other than coming to your aid when you need assistance, providing good customer service and charging fair premium amounts, your insurer should also reward you with a no-claims bonus come car insurance renewal time. If all these factors are in place, you can rest assured that you’ve invested in a good insurer.
I feel this is theoretical in a way. In India we do not have such considerations like type of vehicle, safety record of the driver, add on etc., It is a flat charge and the claim settlement is the poorest. I was in UK and was covered by an exhaustive Insurance coverage. After 5 years I was paying only 30% of my original first payment as I was considered a very safe driver. When my vehicle was involved in a pile up and totally ruined, first at the spot ofa ccident I was offered taxi service to go to work; then in the evening they permitted me to hire a vehicle of same model till the decide the repair issue; finally they communicated to me that the vehicle was beyond economical repair and offered either the cash equivalent of the insurance or to purchase a new vehicle approximating the value of my vehicle insured. They had inspected the vehicle each year and depending on my maintenance had worked out the market value – not a flat depreciation as in India.