5 Things to Make the Best Out of Your Car Insurance Plan

To buy a car we tend to plan and research so much about the model, price, engine, interior, tires, and everything that seems important. But people usually miss out on the insurance part and underestimate its importance. It is vital for you as a car buyer to consider car insurance and make the best out of it for future financial security.

Read more

Compare & Save upto 85%* on Car Insurance
Get Car Insurance starting
@ only 2094/year#
  • Renew Policy In2 Minutes

  • 20+ Insurers To Choose From

  • 51 Lakh+ vehicles insured

#TP price for less than 1000 CC cars. All savings are provided by insurers as per IRDAI approved insurance plan. Standard T&C apply.

Following are the 5 major factors that you must consider before buying car insurance online.

1. Choose a Policy Based On Your Needs

Motor Insurance comes with two plan options - one is third-party motor insurance and the second is comprehensive motor insurance. As per the motor vehicle act 1988, the third-party car insurance plan is mandatory for every vehicle owner in India. 

While a third-party insurance policy only covers your liability towards a third-party person or vehicle due to accidental damage. A Comprehensive car insurance plan offers you coverage for your own loss/damage as well as third-party liability. With that dual coverage benefit, it comes with extra benefits, which you can avail by adding riders to your base plan.

It is advisable to consider the needs and requirements before buying car insurance plan. If you want to opt for only third-party liability coverage, you're good to go for a third-party plan. If you want to protect your car as well as want cover for third-party liability, you must buy a comprehensive car insurance plan.

2. Carefully choose the Deductibles 

A deductible is the percentage of amount that the insured agrees to pay from his pocket at the time of claim settlement or repair works. It refers to the amount that pertains to the portion of damages that are not covered by the insurer. 

A vehicle insurance policy comes with compulsory and voluntary deductibles options. At the time of claim or damage repair, you are required to pay the percentage of deductibles chosen by you at the time of policy purchase or renewal. Under the compulsory deductible option, the insurer decides this percentage of the claim amount that you need to pay from your own pocket.

A higher deductible means a lower claim amount and is fruitful for safe drivers. It is advisable to choose the deductibles as per your claim paying ability.

3. Correct Insured Declared Value

Insured Declared Value or IDV is an important deciding factor for your car insurance premiums. Your car's approximate current market price is what IDV is. IDV is only available with a comprehensive car insurance policy, you will not get to opt for the IDV range with third-party car insurance

IDV range comes to the rescue when your car gets stolen or damaged beyond repair due to an accident. In such a scenario, it will be considered as a total loss and your insurer will compensate you with the approximate IDV amount that you had set at the time of policy purchase.

While purchasing the car insurance plan and make sure that the IDV is currently declared, the higher IDV value means increased premium, and lower IDV value means reduced claim amount. Do not declare wrong IDV just to save on the premium, as it will create problems at the time of car insurance claim settlement.

4. Choose Your Add-on Covers Wisely

Add-on covers are only available with a comprehensive 4-wheeler insurance plan. Almost every Motor Insurance Provider offer these add on covers: Return to invoice, Engine protection cover, No claim bonus protect, Roadside assistance cover, Zero depreciation cover, and Passenger accident cover. Each rider has a unique feature and benefits that you can avail. You have an option to buy these add-on covers by paying a little extra premium. 

Since every add-on cover comes with unique features and benefits it is important for you to determine which one suits your needs and requirements the best.

For instance, if you can anticipate that there will be fewer chances of raising a claim then you shouldn't buy NCB cover with your car insurance plan.

5. Retain Your NCB by Timely Renewing Your Policy

NCB refers to the No Claim Bonus; it is a discount which you get on your plan when you don't raise a claim in one policy year.

Your motor insurance policy needs renewal every year. Although general insurance companies provide car insurance plans from 1-year term to longer-policy terms, it is advisable to opt for a longer policy term. It is so because then you will be able to avail the benefit of your insurance plan for a longer duration with the hassle of renewing it every year. 

It is imperative to keep your car insurance policy active if you have chosen a policy term of more than 1 year. If you will not renew the policy, it will get lapsed and will be of no use. Over that, you might lose the no claim bonus accumulated over the years.

You must know that the NCB amount can be as high as 50% for 5 consecutive claim-free years. To retain the NCB, you must renew your policy on time.

The Final Word

It is imperative to factor in the above-mentioned points while buying a four-wheeler insurance policy to make the best out of your plan. If you have chosen, the comprehensive car insurance policy then you have already enhanced the policy coverage for your insured vehicle. Also, it is advisable to go through the terms and conditions of your policy document to plan your insurance properly. 

Find similar car insurance quotes by body type

Hatchback Sedan SUV MUV
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
 Why buy from policybazaar

Car insurance articles

Recent Articles
Popular Articles
Does Comprehensive Car Insurance Cover Hit and Runs?

09 Jan 2023

Yes, your comprehensive car insurance policy may cover the damages
Read more
The New IRDAI Regulations for KYC in Car Insurance

03 Jan 2023

As per the IRDAI guidelines, all motor insurance sectors including
Read more
How Can We Use Roadside Assistance Cover in Car Insurance?

09 Dec 2022

Roadside Assistance is an add-on cover offered with your
Read more
Is Nut Bolt Covered Under Car Insurance?

06 Dec 2022

No, any damage to the nut bolt or any other consumable of your
Read more
What Happens When You Only Have Third-Party Insurance?

05 Dec 2022

Third-party car insurance is a mandatory cover as per the motor
Read more
Getting Your Duplicate Car Insurance Policy is Easy-Here’s How!
Losing your car insurance documents can be daunting. In such a state of affairs, the first thing that comes to your
Read more
Check Car Insurance Status Online on Parivahan Sewa/ RTO?
It doesn’t matter if you are an excellent driver or take your car out only once in a few months, your car must be
Read more
Multiple Ways To Check Your Car Insurance Status Online
With everything going digital, checking vehicle insurance status online has become easier than ever. It not only
Read more
How to Find Car Insurance Details by Registration Number?
As a car owner, it is mandatory to have a car insurance policy under the Motor Vehicles Act, 1988. Sometimes, you
Read more
Transferring Car Insurance from One Person to Another
An integral part of selling a car, for both the buyer and the seller, is ensuring a successful car insurance
Read more

View Plans
Download the Policybazaar app
to manage all your insurance needs.