Choosing the Right Car Insurance Policy

 

In India, having at least third-party car insurance is mandatory by law, which means there’s no escape from it. Although compulsory, the scope of coverage of a third-party car insurance policy is limited as compared to a comprehensive car insurance plan, as it offers financial protection against accidents, theft, and natural and man-made calamities, along with fulfilling legal obligations.

But with so many plans to choose from, selecting the right car insurance plan can be a daunting task. This guide will equip you to navigate your way and help you select a plan that best suits your car insurance requirements.

 

Before purchasing car insurance in India, review the checklist.

 

• Your needs and budget:

This is a primary factor to consider when choosing a car insurance plan. If you have recently purchased a new car, you might want to get complete coverage for it. For an old car, third-party insurance can be enough too. This mainly depends on your budget as well as your driving preferences.

 

• IDV (Insured Declared Value):

IDV is the listing price of your car after depreciation. This amount is the maximum value for which your insurer will compensate you in case of a claim. Under-evaluation of IDV will give you less coverage, and over-evaluation will lead to a higher premium value.

 

• Coverage Type:

Mainly, there are three types of car insurance plans available in India: third-party, own-damage, and comprehensive car insurance. Each plan offers different coverages, and depending on your car type, driving habits, location, etc., you can make a choice among these plans. Choosing a plan with wider coverage might cost you more but will provide extensive protection as well.

 

• Add-On Covers:

With a comprehensive car insurance plan, you get the option to boost your base plan with a number of add-ons. Although this plan fulfills most of your car insurance needs, these add-ons facilitate covering any additional risks and give you the freedom to customize your policy.

 

• Claim Settlement Ratio:

The claim settlement ratio generally reflects the number of claims processed in a year by an insurer. The higher the ratio, the greater the chances are that your insurer will process your claim swiftly in an hour.

 

• Network Garages:

Network garages are the registered service centers with which an insurance company partners to give you a hassle-free experience. A vast network of garages helps you avail cashless and swift service for your four-wheeler.

 

• Customer service reputation:

You can evaluate the goodwill of your preferred insurance company by going through customer reviews. Opt for an insurer that values customers’s interests and handles queries promptly.

 

Here is a table at a glance to help you understand the different types of car insurance plans in India.

Feature	Comprehensive Car Insurance	Third-Party Car Insurance	Own Damage Car Insurance
Covers Own Damage
Covers Third-Party Damage
Covers Third-Party Injury
IDV Applicable
Choice of add-ons

 

Common Add-On Covers to Enhance Your Car Insurance

• Engine and Gearbox Protection: Get your car’s engine secured against engine repair or replacement costs.
• Zero Depreciation Cover: This is the most preferred add-on with customers as it waives off the depreciation on the damaged parts so that you get the full value at the time of claim.
• Loss of Key Cover: If you lose your car keys or there is an attempt at theft that damages the locking system of the car, such expenses can be covered with this add-on.
• Roadside Assistance Cover: In the event that your car breaks down in the middle of the road and you don’t find any help nearby, this add-on can help in providing mechanical assistance, flat tire protection, a jumpstart facility, etc.

 

Conclusion

A car insurance plan is the ultimate blanket of protection for your four-wheeler that safeguards you financially against repair or replacement costs of damages that might happen due to accidents, fire, theft, etc. Being aware of your specific car insurance needs, frequency of driving, preferred coverage, choice of add-ons required, and budget can go a long way in your car insurance journey.

So buckle up, choose wisely, and drive with confidence!

 

Disclaimer

The content on this blog is for informational purposes only and should not be considered as professional advice or any form of opinion. Please go through policy related documents carefully or consult with a qualified professional before making any decisions regarding insurance or financial matters.