General insurance is a broad term that encompasses all types of insurance plans except life insurance. Thus, your general insurance plan list would generally include health insurance, vehicle insurance, travel insurance, personal accident insurance, critical illness insurance, home insurance, and commercial insurance. There may be more additions to this list depending on what each provider has to offer.
It is very important to have a well-planned general insurance portfolio for comprehensive financial security. One never knows when things may go wrong and thus, it is best to be prepared to meet any contingency. However, if it’s your first-time buying insurance, you might be confused with the how and what of the process. If that’s where you find yourself right now, read on for 5 things to keep in mind when buying general insurance.
- Compare providers
Buying any one among the many types of general insurance can be confusing. With so many plans out there, you may be flummoxed wondering which to pick. Yet, it would be a mistake to go with the first option you get. Be wise and compare policies online to ensure you are getting exactly what you need – no more and no less. You can use aggregator websites to help you make a fair comparison.
- Try to bundle your purchase
Many insurance companies offer you a discount if you buy more than a single policy through them. For instance, you might want to consider buying health insurance from a single provider for your entire family. Or, if you and your spouse each have a car, try to purchase insurance from the same provider and request a discount.
- Check the company claims settlement
The claims settlement ratio will give you an idea of how many claims the insurance company honours against the total number of claims they receive. Always buy coverage from a general insurance company that has a high claim settlement ratio. This will mean you have a high probability of getting your claim accepted and processed with minimum hassle.
- Make use of bonuses
Your car or health insurance plan will usually come along with a special feature known as the ‘no-claims bonus’ (NCB). This bonus is rewarded to customers who have not made a claim in the past year of having the policy. Note that you can get NCB even if you change insurance providers.
- Read reviews
It is important to know what other customers think of a particular company. So, do read up reviews of general insurance providers before you choose the one you want to go with. Look for reviews that talk about the quality of customer service, affordability of premiums, and the ease of the claims process.
Buying insurance is a task that must be carried out with due diligence and consideration. Talk to an insurance agent or spend some time online doing your research before you make up your mind. We hope this article will prove helpful for you.