Auto InsuranceFinancial Plan

5 Point Car Insurance Buying Checklist One Must Follow

Are you in a hurry to buy your car insurance and get the job done? Do you really think that buying a car insurance is just a formality like many people do? I have seen many people who don’t understand the importance of insurance for their car and even though they realize the need of car insurance, they simply settle down with the cheapest car insurance policy.

But have you ever realized why are you buying insurance for your car? In this article I will share few essential things to note while buying your first car insurance or renewing your vehicle insurance policy by pointing 5 checklists to make a note.

Must have 5 Point Checklist while buying car Insurance

The best part for car owners these days is, buying an insurance policy has become very easy now a days and one can do the same through online and people can visit your place to do the inspection. In this process you can save huge time by travelling to your insurance company to buy the required insurance. Let’s find out the points which you need to keep in mind.

Don’t Look for the cheapest policy: These days there are so many types of insurance one need in everyday life, like life insurance, health insurance, car insurance. So a lot of people just want to settle down things by purchasing cheap insurance plans. You might have received a couple of car insurance calls where a cheap premium is waiting for you, but remember that the cheap price is not the only criteria to buy one. There are other factors you have to verify before deciding whether the policy is really worthy for your car when required. You should understand the facts why car insurance is a must for your vehicle.

Compare Car Insurance Online: The insurance aggregator portals like, are offering great platform to compare almost every single company’s car insurance plans easily with various filters of features to check out. Never buy an insurance without comparing online. If the features are same, then why to pay more premium? You can also check the article on how to lower your car insurance premium to explore more info.

Cashless Claims, Network Garage: Have you checked how many garages are available in your city where your car insurance policy can cover cashless claims? This is one point where people miss most of the time. If a company is new and offering low premiums, there is no point of going with them in case the garage is far away from your house or there are very less number of garages where cashless claims can be taken care of. In such a scene, you may have to face huge hassle in case you face any car accident or any damage.

Claim Settlement ratio: Claim settlement ratio is the key benchmark to judge how good the company is performing while settling the insurance claims. Always cross check what is the claim settlement ratio of the company you are planning to buy car insurance. A high CSR is always good. But remember that the number of claims rose & settled by the company in a year is also a matter to understand how the company is popular among people and how they are dealing with their customers. More over everyone need a hassle free process.

What are the Exclusions: This is another point where many people forget to validate what are the exclusions of their insurance plan. Generally people think that the insurance plan will cover every single problem their car is going face in coming days during the policy term. But let me tell you that, there are many expenses which are not covered in a car insurance which you should know clearly before purchasing.

E.g. generally all default car insurance plans don’t cover bonnet to boot insurance cover. To get that, you may have to pay extra premium. So make sure what are the inclusions and exclusions of your car insurance by reading their terms clearly.

If you are aware about the actual importance of insurance, then make sure to read the policy details in depth and try to understand every single point, which most people don’t do. But if you want your car & yourself to be safe from any surprises in the future while availing the policy benefit, then you have to follow this mandatory checklist before buying a car insurance.

Santanu Debnath
the authorSantanu Debnath
Santanu is a personal finance enthusiast, who shares experiences on insurance, investment, savings @

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