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Your Complete Guide to Select the Best Car Insurance Policy in India

Before zeroing down the best car insurance policy in India for their car(s), most people miss the crucial step of researching, and they jump into the premium directly. On the basis of the premium, they finalize their selection of a car insurance policy.

Here is a step by step guide for you; it will be helpful for you in order to make an informed and wise choice. Consider the points mentioned below in order to select the best insurance policy for your car.

Key Points to Consider while Choosing Best Car Insurance Policy in India:

While buying a car insurance policy, you must consider the following key points:

Compare the Key Features Provided by the Insurance Coverage:

Draw a comparison of your shortlisted motor insurance policies to analyze if they all are providing the same kind of insurance coverage. Your insurance plan should include all the key inclusions in terms of a car (such as own damage cover) and provide you with coverage against a personal accident as well as for the injuries succumbed by a third-party.

Review Add-on Riders as the Part of the Best Car Insurance Policy in India:

It is always recommended to pay adequate attention to all the add-on riders so that you can pick out the best car insurance policy in India with additional benefits. For your convenience, we have listed below a few crucial motor Insurance riders.

Engine Cover:

It provides an extra layer of protection by safeguarding you against additional expense incurred due to car engine damage.

Third-Party Liability Coverage:

Third-party Liability coverage ensures the protection of the car owner against any financial liability that could be because of any bodily injury, death, and damage repair cost of a third-party motor.

Roadside Assistance Cover:

In case you are stranded because of the engine failure or an accident or if your car’s tire is punctured, you are provided with the option of availing roadside assistance. It will enable you to call your insurer and make a request to send a car mechanic at your location.

Zero Depreciation Cover:

When you make a selection to add zero depreciation cover to your car insurance policy, the depreciation on substituted car parts is waived off by your insurance company. It signifies that you are eligible for getting a higher amount of claim.

Personal Accidental Cover:

Personal accidental coverage ensures the financial protection to the vehicle owner against unexpected and unfortunate events that might induce physical trauma, or cause the accidental death, or the person might end up being a totally disabled permanently because of a road accident.

Consider Reviews of the Car Insurers:

Make sure you ask your extended family members and friends regarding their experiences with any specific motor insurance company. The feedback coming directly from your near and dear ones may provide you better insights about how its customer support and claim procedure work. It will help you to make an informed choice.

Options for a Flexible Car Insurance Coverage:

While buying the best car insurance policy in India, a flexible coverage is always significant. As the consumer base is varied, there is no ‘one-size-fits-all’ kind of policy. You must choose a car insurance policy depending on certain insurance needs. An insurance provider, which offers the flexi-coverage facility, must be given priority over other needs. This involves that if the insurance provider offers a pre-existing package that is tailor-made as per your needs and requirements, you must take a positive sign into consideration.

Compare Insurance Premium Online:

The Internet is flooded with so-called great deals. Don’t fall for them; they could be nothing but a trap. You can come across a decent deal online when you take some time out of your hectic schedule and search across the Internet.

While comparing car insurance plans online, keep the following points in your mind:

  • Compare various insurance plans offered by the different insurance providers.
  • Ensure that the comparison site computes the premium on the fixed IDV (Insured Declared Value).
  • Compare the insurance premium on at least 3 online insurance comparison sites.

Guide to Choose the Best Car Insurance in India

Factors Affecting Your Car Insurance Premium:

The factors determining the car insurance premium depend on the risks, which the insurance provider underwrites. These factors are categorised as under:

Risks Related to Car:

The model of your car, cubic capacity, and fuel type etc. are a few parameters that determine the premium for your car insurance. Some care such as commercial cars and SUV, i.e. Sports Utility Vehicle, often require higher premiums as insurance providers get a large number of claims on these cars. Usually diesel cars have a 10-15% higher premium than the petrol vehicles.

Risks Related to the Location:

This is based on the registration area. Generally, the premiums are higher if the owner of the car lives in the urban area, densely populated area, or near highways. If theft or loss of vehicle is higher in the area where you reside, then the car insurance premiums go up.

Risks Related to Driver of the Car:

The profession and age of the driver are taken into consideration. In case of multiple drivers of the car, you have to pay higher premiums.

Negotiation is the Key:

When it comes to buying motor insurance, negotiate with your existing insurance provider. You never know you might end up getting an additional advantage if you have been a responsible driver and have not made way too many claims or filed too many accidents.

Safeguard Your No Claim Bonus (NCB):

If you are a responsible driver, and you haven't filed any claim, then you get the advantage of No Claim Bonus (NCB). If you don't register any auto insurance claim for a year, then your car insurer rewards you with No Claim Bonus. This is the discount that is subtracted from your insurance premium during policy renewal. As an option, you can go for NCB.

Check out the Claim Settlement Ratio (CSR):

Before you finalize a car insurer, last but not the least, consider the insurer’s previous record of claim settlement. Claim Settlement Ratio is the time taken by an insurer to settle down the claims from its clients. Proceed only when it is good. Don’t even think of buying a best car insurance policy in India if the CSR is not good. You can easily find the Claim Settlement Ratio of various insurers on the website of IRDA of India.

Main Areas where you might go Wrong while Choosing a Cover:

Here are some key areas where you might go wrong while selecting a cover for your car:

Value of the Vehicle:

With the intention of buying a car insurance policy with a lower premium, frequently people decrease the Insured Declared Value (IDV) of the vehicle. But, in the event of an accident the vehicle is treated as a total write-off. You must not entertain such practice as the benefit for cost is not enough. Always try and buy a policy, which offers you the highest IDV on your car, even if you have to pay a little higher premium.

Lapse of the Policy:

If your policy lapses your insurance company may give you a grace period of generally a week. After this period of grace, you run the peril of driving a vehicle without any insurance. You might have to lose out on the benefits such as discounts for car insurance or lower premiums.

You may like to Read: What is NCB?

In a Nutshell!

It is good to look above and beyond the motor insurance premium when you are finalizing the best car insurance policy in India for your automobile. Always take the aforementioned points into consideration while choosing a car insurance policy for your prized possession. Buy a car insurance plan, gear up your wheels and drive without worries.

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