Car insurance plans are generally considered a one-time purchase because most of us don’t want them used for claims! Since the number of accidents is increasing every day, insuring your car should be your first step to avoiding financial loss.
Among the many types/types of car insurance, third party car insurance is mandated by law. Especially if you own a Honda car, it is easier to opt for third party car insurance due to the easy availability of insurance coverage. Its features involve coverage to third parties for their damages caused due to an accident with the insured car.
However, before opting for one, there are some aspects you need to consider to avoid unnecessary hassle. Read on to find out!
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Do you know the coverage requirement for your Honda car – third party or comprehensive?
Before availing yourself of a Honda car insurance plan, make sure you understand all the types and choose one according to your needs. In India, two types of car insurance policies are available: liability insurance and comprehensive insurance.
The former is a mandatory requirement by law and under this policy you will only be covered for damage to a third party, not your own car. The latter, on the other hand, covers civil liability as well as damage to your car.
Basic plans or third party auto insurance usually come with an affordable premium, so people tend to opt for this one more. However, for luxury car owners, comprehensive auto insurance is still an ideal choice as it protects them from excessive financial liabilities that arise after an accident.
- Compare Honda car insurers online
Once you are done choosing a particular type of insurance policy, consider checking out all the popular plans available online. With easy access to technology, it has become much easier to get information about each policy and choose the right one for your needs.
Compare different insurers and check essential factors such as claims procedure, exclusions, deductibles, type of options offered, etc., before making a decision. Apart from these aspects, calculating the premium amount is also essential to finally choose a profitable plan.
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- Know the insurer’s claims settlement rate
CSR or claims payout ratio is something that most policyholders ignore before availing insurance plans. It is essentially the time an insurance provider takes to settle claims for its customers. Always go for an insurance provider that has a high CSR, as this means you have a better chance of getting your claim approved.
- Know the claims process
Since the main objective is to obtain financial assistance in the event of an accident, it is essential to have a good understanding of the claims process to make it faster. Ideally, you should always choose a car insurance policy that follows a quick and easy claims process so you can rely on it in an emergency.
- Carefully read the terms and conditions of the policy.
Since people focus mainly on the amount of premium and the coverage they will get, they often miss all the conditions applied by insurers. Always go through all policy documents before signing and check if the terms are in your favour. This way, it also becomes easier to avoid any legal complications that may arise when filing a claim.
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- Include add-ons based on your needs
Most insurers offer endorsements or add-ons, which are essentially additional coverage options that you can avail of by paying an additional premium. Some of these runners may seem cheaper and convenient at first; they also increase financial liabilities after a point.
However, some of these supplements offer substantial benefits such as coverage against specific damages that were not included in the insurance plan you have chosen. Before availing, make sure you know everything about these add-ons, the benefits you will get, and then choose the one that suits your needs perfectly. Here, a very important point to note is that these add-ons will only be available to those who have comprehensive insurance plans.
- Know the garages of the network tomaintain your Honda car
Before going ahead and choosing a car insurance plan, go through the list of all the garages in the network where you can have your Honda car serviced. Most car insurers offer the option of having the car repaired at any approved garage where policyholders will enjoy cashless facilities for claims settlement.
It is essential to have complete information on this whole process, including all garages approved by your insurer to facilitate the process.
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Now that you have a good idea of the aspects to check before taking out a car insurance policy, it will be easier to prevent financial losses in the event of an accident.