How to choose a general insurance provider?

Although insurance is a contract between two parties – the insurer and the insured, it acts as a friend by securing you from life’s uncertainties. Whether you are travelling, driving, or spending time with your loved ones at home, emergencies come without warning. Hence it helps if you stay prepared and deal with difficult times wisely.

While selecting a general insurance company, compare various plans available in the market and assess your needs as it protects you and your family from risks. Life is precious for every individual. Hence buying an insurance plan saves you from financial burden and stress.

Before buying or investing in anything, compare. For example, we compare gadgets based on their features and specifications before choosing the desired one. Similarly, comparing different four-wheeler policy helps in making an informed decision. Websites have all the necessary information, including coverage, exclusion, eligibility, and optional covers.

While buying a car insurance plan, check the coverage, claim settlement ratio, availability of authorised garages, and personal accident cover. They help you assess the reliability and claim settlement possibilities of the provider.

It covers you against legal liabilities for injury, death, or property damage caused to a third-party involved in the accident. You need to buy one for your vehicle since it is mandatory in India. Thus, you save on expenses liable to the third-party while the insurance company takes care of the formalities.

NCB is the bonus you earn for every claimless year of auto insurance. It is the benefit you receive from the company for safe driving and maintenance of your vehicle. At the time of renewal, the higher the NCB, the lower is your premium because the insurer increases the NCB amount steadily for not raising a claim.

IDV is your four-wheeler’s current market value. It is the sum provided to you by the insurance company in case of theft or total damage. The insurance provider fixes the sum, and it is one of the factors responsible for the premium amount you pay.

The percentage of the total claims settled to the entire claim received by the insurer in a financial year is the claim settlement ratio. It is the likelihood of the insurer paying you for the loss or damage to your vehicle and is a vital tool to measure the reliability of a company.

It would help if you remembered to do car insurance renewal on time to keep them and peace of mind intact. Read the car insurance policy features carefully. If you find a better plan, you switch to it to provide a lesser premium with similar benefits.