Car Insurance

While third-party insurance is sufficient to avoid traffic fines, a comprehensive policy offers complete protection to you and your vehicle.

A higher claim settlement ratio (CSR) of the insurer implies there are greater chances of your claims being settled.

Choose an insurer with an extensive network of cashless garages. It will broaden the scope of availing of a cashless repair facility without paying cash from your pocket.

Go for an insurance company with an easy claim process, 24x7 claim support, and a faster claim settlement.

Choose the IDV that matches your car's market value. While a lower IDV can help you save on your premium costs, you may incur higher out-of-pocket expenses during claims.

Compare multiple 4-wheeler insurance plans online to find the best-suited plan within your budget. You can easily compare car insurance plans from 20+ insurance companies at Policybazaar.com.

When buying insurance for a car, consider the customer service and additional benefits the insurer provides. An insurance company that offers 24/7 customer assistance is essential. This will help you to settle your queries and claims conveniently.

The IDV decreases as your car gets older. The table below shows how the age of your four-wheeler affects the IDV.

Note:If you choose a lower IDV, it may reduce your premium but will also lower the claim amount.

As your car ages, the value of its components declines. This, in turn, reduces its IDV. The table below provides a clear idea of the depreciation rate at which the car components are calculated:

This depreciation charge can be avoided by opting for a zero depreciation or nil depreciation add-on cover.

Usually, the IDV for luxury and premium cars is higher, whereas regular sedans and hatchbacks have a comparatively lower IDV. If you have an expensive car, it becomes all the more important to choose the right IDV to ensure you get adequate compensation in case it suffers damages or total loss.

Metropolitan cities like Delhi, Mumbai, & Bangalore usually have a higher IDV since the risk of accidents and theft is higher. However, tier-1 & tier-2 cities and rural areas generally have a lower IDV.

Any extra accessories installed in your car may increase your car's IDV. While buying insurance, you must include the value of these modifications to ensure full coverage. Understanding these factors help you to make an informed decision about buying car insurance and ensuring maximum protection at the right cost.

The car insurance premium price is decided based on the type of policy you choose. Basically, third-party insurance policies have the lowest premium as it only covers third-party damages. However, the premium price is higher in case of an own-damage or comprehensive insurance policy.

IDV, the current market value of the insured four wheeler, significantly affects the premium. It is the maximum amount a policyholder receives in case of a total loss or theft. Usually, the higher the IDV, the higher its insurance premium.

A four-wheeler's make & model, fuel type, and variant significantly affect its insurance price. Typically, it is costlier to insure high-end or luxury models than the basic hatchback models because of the higher repair & part replacement costs.

Usually, the 4-wheeler insurance premium is higher in metropolitan cities because of denser traffic and, consequently, higher chances of accidental damage.

The manufacturing year of the four wheeler is also considered when deciding the car insurance premiums. Insuring newly launched cars can be expensive since their spare parts might not be available in the market.

Though enhancing the policy coverage with add-on covers provides wider protection, it will increase the premium, too. Hence, you must choose the add-ons for your policy wisely.

If you have not filed claims during the policy term, the insurer provides a discount in terms of the No Claim Bonus (NCB). You can use this reward to reduce the policy premium at the time of car insurance renewal.

Many insurers check your driving history when deciding the four-wheeler insurance premium prices. Traffic infractions and accidents can affect this amount.

IDV or Insured Declared Value is the current market value of the insured four-wheeler. If it suffers total loss, IDV is the maximum compensation that the insured person will get from the insurer.

Premium is the amount the vehicle owner pays to the insurer in exchange for the financial protection of the four-wheeler.

No Claim Bonus or NCB is a discount on the motor insurance renewal premium. This reward is given by the insurer to the policyholder for safe driving and not raising any claims in the previous policy year.

Zero depreciation is an add-on cover in car insurance that prevents the depreciation deduction on the four-wheeler and its parts during claims.

Damages from an accident, natural calamity, fire, man-made disaster or burglary.

Personal accident cover in car insurance provides compensation to the owner-driver in case he/she becomes disabled or dies in an accident.

These claims are filed when the insured 4-wheeler is taken for repair at a network garage authorised by your insurer.

A voluntary deductible is the amount the policyholder chooses to pay out of pocket when making a car insurance claim.