As per trends reported from several travel portals, road trips in India are witnessing a 15% annual rise for travellers between 25 and 35 years of age. A famous travel portal based in Gurgaon itself claims the increase in road trip goers by 35% every year. Also, for people owning a car, they prefer to go by owned vehicles than other modes of transport.
Given this increasing rise in the popularity of road trips in India, car owners subject their vehicles to numerous dangers that result in financial losses. It is therefore a necessity to purchase a car insurance policy to financially cover yourself against such damages.
A car insurance plan covers the insured vehicle against specified financial losses suffered during road trips. Below mentioned are the considerations you can make when choosing the best insurance policy for your car to go on the next road trip in India.
Know how to choose the best car insurance:
In India, primarily two types of policies are available for insuring a car against financial losses suffered during a trip. You must have an understanding of the two to make the right choice.
- Comprehensive vehicle insurance
A comprehensive coverage plan provides vehicle insurance for damages originating due to several reasons. It may be due to damages suffered due to natural calamity, collision, vandalism, fire, theft or accident.
Additionally, this plan also financially covers damages caused to a third party due to incidents where the insured car is involved, thus the name comprehensive insurance.
- Third-party vehicle insurance
Unlike a comprehensive plan, a third party car insurance policy covers only those liabilities that occur to a third party due to the insured car.
Since it is mandatory to buy a third party car insurance policy for vehicles under the Motor Vehicle Act, 1988, you must choose your insurance plan carefully as a car owner. The best third party car insurance policy will provide comprehensive coverage against damage sustained to third party due to the insured vehicle.
Now that you know about both types of policies, check you some of the important features to look out for:
- It should have a seamless claim settlement procedure
Claim settlement is an essential aspect to consider as the damages sustained by your own vehicle or the third party one must be resolved at the earliest. Repairing costs may strain your finances in case you do not have a policy in place.
It is essential to find a car insurance provider who ensures a seamless procedure of claim settlement. Check the claim settlement ratio of an insurance company before purchasing any insurance product.
- The premium should be affordable
An ideal insurance plan for your vehicle must also offer a substantial financial cover against a nominal premium amount. Therefore, make sure to compare the premium amounts offered by different insurance providers along with the cover amount they provide.
It will help you choose the highest cover amount against minimum premium payment from the available car insurance plans.
- Look for the availability of optional upgrades
Road trips also bring with them the risk of accidents for the vehicle owner as well as the passengers driving in it. As per the research wing under the Ministry of Road Transport & Highway Transport, the Government of India, approximately 5 lakh individuals were injured during road accidents in 2015. Post the Brasilia Declaration, India aims to bring down the numbers drastically.
Given such critical risks surrounding road travellers; you must also look for car insurance policies that can be upgraded to include personal accident covers as well. For example, you can choose an add-on personal accident cover with Bajaj Finserv vehicle insurance for third party damages.
Choose the insurance policy for your car wisely, keeping all these considerations in mind. Make sure to check the eligibility criteria of an insurer before proceeding with policy purchase.