Important Things to Consider When Buying Car Insurance

Car insurance is an essential safety net that financially protects you in case of unexpected expenses which may arise from accidents. Yet, a lot of car owners only consider price and miss out on other critical details when choosing policies, which could affect their savings in the long run. If you are planning to buy or renew your car insurance in 2026, here are a few key points you should keep in mind so you can make an informed decision.Read more

8 Tips to Consider When Buying Car Insurance in 2026

While choosing car insurance online in 2026, keep these 8 important tips in mind:

1. Understand Your Coverage Needs

   When buying a motor insurance policy, start by assessing what level of coverage suits your needs. Companies offer various types of car insurance policies, and understanding which one is the best for you is important to get maximum coverage at a reasonable price. Here is how to understand your coverage needs:

   • Third Party vs Comprehensive: Try to figure out if just having the legally mandatory third-party insurance is sufficient for your vehicle. It offers coverage against damages caused to anyone else because of the insured vehicle. However, if you are looking for insurance that covers damages to your own vehicle caused by accidents, theft, and natural disasters, you must opt for a comprehensive policy.
   • Know Your Vehicle Value: Another common way to assess the coverage you need is by determining the current value of your vehicle. It is always better to insure high-end cars and models with comprehensive car insurance.

2. Understand Insured Declared Value (IDV)

   IDV, the current market value of your car, is the maximum amount your insurer gives in case of total loss (damage beyond repair) or theft. Your car's IDV determines your car insurance premium amount. A higher IDV means a higher premium amount but better claim payout. On the contrary, the lower the IDV, the lower your premium, but a reduced claim compensation. To save money, many car owners opt for a reduced IDV, which leads to their significant out-of-pocket expenses at the time of claim.

3. Compare Quotes Online

   You can easily get multiple insurance quotes online from car insurance companies. This helps you compare several plans and policies while getting the maximum coverage at a reasonable price. It ensures you don't pay high premiums, increases transparency and efficiency. This helps you compare multiple insurers by setting the same IDV and add-ons, to choose the most suitable policy for your vehicle.

4. Choose Appropriate Add-ons

   Add-ons in car insurance enhance your basic policy coverage, but you should select them wisely. Have a look at the most valuable add on covers:

   Add-On Covers	Benefit	Ideal For
   Zero Depreciation	Full claim payout without any depreciation deduction	New cars
   Engine Protection	Coverage for damage due to water ingress of oil leakage	If you live for flood-prone areas
   Return to Invoice	Compensates the original invoice value (ex-showroom + road tax) in case of total loss	Brand-new cars
   Roadside Assistance	24 x 7 emergency services (towing, puncture repair, battery jumpstart, etc.) during a car breakdown	Frequent travelers
   Consumables Cover	Covers replacement of nuts, bolts, lubricants, etc.	High repair costs

5. Review Policy Terms

   Buying an affordable insurance plan doesn't always mean adequate coverage, whereas buying an expensive policy does not ensure full coverage. You should always cross-check the inclusions, exclusions, and the terms and conditions of the policy.

6. Carefully Choose Deductible

   Insurers often set a deductible with policies. A deductible in car insurance is the amount you pay out of your pocket at the time of a claim. While choosing a higher deductible can help you save on your premium, you could incur significant expenses in the long run. Hence, make sure you weigh the savings against the risk of paying more during claims.

7. Leverage Telematics & Usage-Based Insurance

   Some new-age insurers use telematics to track your driving behaviour, based on which your policy premium is determined. Safe drivers get rewarded with lower policy premiums. Additionally, you can consider buying a usage-based plan, such as PAYD (Pay as you Drive). If you drive less and not so frequently, you can opt for flexible insurance plans. Under these plans, you pay only for the kilometres you have driven. Please note that this is not ideal for daily long-distance users.

8. Check the Insurer's Claim Settlement Ratio

   Don't just buy car insurance and forget it. Always review your policy during renewal to secure the best deal. Check the insurer's reputation, the claim settlement ratio (CSR), network garages in your prescribed location, and customer reviews.

9. Check Available Discounts

   Always check for discounts offered by the insurers to reduce your premium. Utilise your NCB discount to get up to 50% off on own-damage premium during renewals or install an ARAI-approved anti-theft device to reduce your premium without compromising your coverage.

Over to You

When buying or renewing car insurance, treat it as protecting yourself in case of unforeseen events on the road. Instead of opting for the cheapest policy, look for the one with the right balance between coverage and premium amount, so you can drive with peace of mind and save significant money when you need it most.