5 Questions to ask yourself before buying Car Insurance

January 27, 2023


HT Correspondent

Updated on:
27 Jan 2023, 11:46 AM

If you are someone who drives a four-wheeler in India, it is legally mandatory to purchase a car insurance policy that allows for third-party liability coverage.
If you are someone who drives a four-wheeler in India, it is legally mandatory to purchase a car insurance policy that allows for third-party liability coverage.

Car insurance is your friend in your time of need. It comes to your rescue when there is an immediate crisis and lends a reassuring hand of support to help you sail through the sudden financial burden of car repairs. In a rapidly changing world, the risks one faces in such instances are high. A good car insurance policy can work to offer security and comfort to drivers of four-wheelers; not only will they protect the individual against their own damages, but they also work to secure the policyholder against third-party damages as well.

If you are someone who drives a four-wheeler in India, it is legally mandatory to purchase a car insurance policy that allows for third-party liability coverage. But sometimes, going the extra mile to make a well-informed decision about your car insurance can’t hurt. If anything, it will equip you enough to make wise choices about your motor insurance policies.

Most organisations, including those of Chola MS car insurance policies, offer customised policies that are uniquely specific to each individual. Insurance companies factor in a lot of aspects, including the driving style of the owners, the miles clocked in the vehicle, etc., to decide on the insurance premium amount for the vehicle. Thus, it is always better to consider the following questions so as to have a clear idea for yourself. These questions can also help ward off any dilemma you might be facing about investing in car insurance in the first place!

Let’s begin!

1) How much do you drive?

If you are contemplating getting car insurance, one of the primary aspects that you need to consider is the frequency of your drives. Most people drive their four-wheelers to the office, while few others prefer to use theirs on weekends or reserve them for long drives. One of the things to note here is the frequency of the drives helps determine the extent to which the vehicle will undergo wear and tear. Accordingly, the depreciation percentage and also premiums will be calculated. When the exposure to the road is more, there is a higher chance of an accident occurring.

2) What kind of car do you drive?

It is imperative to note here that insurance companies are adept at getting the precise details of the model and make of every car there is. Luxury sedans and sports cars stand a higher chance of being stolen and sold for parts. These powerful engines can cost a fortune by themselves thus, the indemnity coverage for these cars will be considerably higher, and this will in turn increase the cost of car insurance.

3) Where do you live/ park your car?

Where you live plays an important role while factoring in your insurance premium rates. If you live in an urban city, the chances of theft and vandalism are higher as compared to other rural parts of the state. Thus a comprehensive coverage seems like the most probable option. Insurance premium rates would be considerably lower should you move from a city to a suburb!

4) Who else drives your car?

Most time, family members borrow each other’s cars to run errands or to even go on trips because it is cost-effective or they are much more comfortable in their family member’s car rather than their own. And sometimes in families, an entire family could share one four-wheeler, which they each use for different purposes. Whatever the reason maybe, if there is more than one individual handling one particular four-wheeler, then they all need to be listed on the policy. As this would be a comprehensive coverage for a couple of individuals, the safest option would be to ensure that they are all covered under one car insurance policy.

5) How good are your driving skills?

Insurance companies are at best smart at deducing and drawing conclusions on premium rates using your driving skills. Learners and seasoned drivers drive at different speed limits and with varying levels of confidence. Most insurance companies check to see if you have had accidents in the past and also ask for your driving record. A clean driving record devoid of claims tends to attract a nominal premium compared to others. Learners and beginner-level drivers are advised to go in for a comprehensive policy plan as the risk of a chance accident like mild dents are highly probable.

These questions can, to a certain extent, offer you an insight into what a car insurance policy can actually entail. These are some of the major factors that are inspected in detail by most insurance companies.

Chola MS car insurance policies offer comprehensive coverage for four-wheelers that ensure that the policyholder is financially secured against all possible threats, including that related to third parties. Prevention is always better than cure, so stay secure with car insurance policies.

Disclaimer: This article is a paid publication and does not have journalistic/editorial involvement of Hindustan Times. Hindustan Times does not endorse/subscribe to the content(s) of the article/advertisement and/or view(s) expressed herein. Hindustan Times shall not in any manner, be responsible and/or liable in any manner whatsoever for all that is stated in the article and/or also with regard to the view(s), opinion(s), announcement(s), declaration(s), affirmation(s) etc., stated/featured in the same.

First Published Date: 27 Jan 2023, 11:46 AM IST

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