Guide To Select The Best Car Insurance Policy In India

Guide To Select The Best Car Insurance Policy In India

Collecting your new car is something very special as it represents many things about what you have achieved in your life. Unfortunately, even if you take extra care and precaution, there is still a possibility that your car could be destroyed by various means. Consequently, it goes without saying that safeguarding it from all kinds of damage is crucial and thus, buying a comprehensive car insurance policy is a wise decision. 

However, the market is flooded with a plethora of options, making it difficult to choose the finest car insurance package. As a result, it is crucial that you conduct extensive research before purchasing the coverage. Continue reading to learn how to pick the best car insurance in India.

How To Select The Best Car Insurance Policy?

Following these precise guidelines will help you get the best car insurance plan in India that best suits your requirements:

  • Know Your Requirements

You must take into account the type of coverage you need when looking for the finest car insurance in India. Turn on your investigation mode for a while, and you’ll acquire a sense of how to go about getting a suitable car insurance policy. For instance, you should consider issues like if your area floods frequently, whether there have recently been any car thefts in the area, and whether your usual route is accident-free. 

Consequently, a third-party liability plan would be the best option if you’re seeking a basic plan with a reasonable premium. However, it is preferable to obtain comprehensive coverage if you drive a luxury vehicle since it will help lower your financial obligations in the event of an accident.

  • Compare The Plans

Before making a purchasing decision, it is a good idea to compare the policies offered by several insurance providers. However, you must ensure that your comparisons are accurate. This implies that you must make sure that the policies you are considering offer the same or comparable coverage. 

You can compare multiple car insurance coverages using a variety of online tools and aggregator websites. Some of the most important factors to consider for comparison are policies’ insured amounts, inclusions and exclusions, types of add-ons provided, claim procedures, deductibles, etc. By comparing several plans, you may choose the best car insurance in India that satisfies your demands and matches your budget.

  • Analyze Insurer’s Credibility 

It is crucial that you research the insurer’s reputation before buying an insurance policy. Even if you don’t care much about brands, you must have thought about them when you bought the four-wheeler. Similar to that, give the insurer’s brand some thought as well. If the brand’s promises appeal to you, you should start a new business relationship by having your car insured by it.

  • Look For Flexible Coverage

Make sure the insurer offers flexible coverage as a component of the insurance policy at the time you purchase it. One sort of policy won’t supply everyone with the protection they require because insurers offer policies to a diverse variety of customers. Therefore, search for insurers that provide flexible coverage, which refers to an insurer’s willingness to alter the insurance plans it provides in accordance with your demands. Try to give these insurers precedence because they will offer the precise coverage you need.

  • Be Aware Of Insurer’s Claim Settlement Ratio

Finding the insurer’s “Claim Settlement Ratio” (CSR) is one of the most crucial steps in selecting the best insurance provider. A claim settlement ratio is the proportion of claims that were resolved by the insurance provider to all claims that were filed. The greater the claim settlement ratio, the more likely it is that your claims will be resolved.

However, it shouldn’t be the only rule since false claims and a lack of supporting evidence may reduce the number of settled claims. It is also necessary to take into account peer comments, online evaluations, and testimonials about the company.

  • Check The IDV Of Your Car

One of the most crucial components of a motor insurance plan is the Insured Declared Value, or IDV, of your vehicle. The IDV is the maximum amount of money you are able to get in the event of an insurance claim. Even if it slightly increases the premiums, it is crucial to set the appropriate IDV for your car when purchasing car insurance. 

To assess the IDV of your car, utilize an online IDV calculator. Selecting an insurance plan without a reasonable IDV is not recommended. One of the key tasks while looking for the finest car insurance in India for your vehicle is setting the appropriate IDV.

  • Read The Fine Print

Because insurance policy documentation can be complicated and lengthy, most consumers tend to forget to read them. Reading your insurance contract carefully to make sure there are no gaps or unnoticed hidden expenses is one of the most crucial steps in learning how to select the finest car insurance in India. For a more thorough understanding, you can also present this document to your lawyer. If there are any regulations or rules that you disagree with, you can ask to have them changed or you can choose to purchase a different policy.

  • Look For Easy & Quick Claim Process

What good is it to get insurance at a reasonable price if you can’t file a claim in a timely manner because the claim process is cumbersome? An insurance plan is only beneficial if filing an insurance claim is simple and easy. It is a good idea to study customer evaluations for several insurance companies and become familiar with their claim procedures before purchasing car insurance. In a perfect world, you would pick an insurance provider with a quick claim procedure and access to cashless network garages.

  • Explore Add-Ons

Once you’ve considered all your options and decided which plan to purchase, you should research the supplemental add-on car covers you’ll require. Zero depreciation cover, return to invoice cover, roadside assistance cover, engine protection cover, no claim bonus protection cover, etc. are a few typical car insurance add-ons to search for. These supplemental insurance policies on top of your basic car insurance policy will make sure that you and your car are safeguarded from monetary obligations brought on by unforeseen events.

  • Check The Quality Of Customer Service 

You must evaluate the quality level of customer service provided before choosing an insurer. When picking an insurer, many people overlook one of the most crucial factors, such as reviews from customers related to the insurer’s customer services, the claim settlement ratio of the insurer, and the overall reputation of the company. These are some of the most important details that you should know for evaluating a car insurance company.

  • Look For Cashless Facility

One of the greatest advantages introduced by insurance companies is the cashless payment of claims. Under this choice, insurers have partnerships with numerous garages nationwide. Cashless settlements make claims considerably simpler because there aren’t many steps to do when filing a cashless claim.

Look into the cashless garages that have a connection to the insurance and determine whether you feel comfortable having your car serviced there. It will be possible for you to fix your car even if you don’t have the money right away if you have a cashless claim option. Therefore, look for an insurer with a wide network of cashless garages as it can offer the cashless facility efficiently.

  • Inquire About Portability Option

Always inquire about the portability option and give higher preference to the insurer who has this feature. The portability option in the context of car insurance simply means that if you do not like the services of your current car insurer, you can change to a different insurer. Therefore, keep in mind that you are not entering into a lifetime commitment when purchasing the coverage. While renewing the plan, you can easily end your relationship with the insurer.

Why You Should Never Choose Low Priced Car Insurance Policy?

It may be tempting to get an inexpensive car insurance plan. But some of the drawbacks of doing so are listed below:

  • Inadequate Coverage: Only third-party liabilities are covered by the fundamental third-party car insurance plan. Therefore, the policy will only cover property losses, bodily injury, or the death of a third party in the event of an accident. You will be responsible for paying for any damages to your car and yourself.
  • Fewer Benefits: Less advantageous car insurance policies are more affordable. Insurance companies lower car insurance rates by lowering coverage benefits. Even a small mishap that is not covered by inexpensive car insurance could cause substantial monetary losses.
  • Financial Burden Due To Higher Deductibles: As lower-priced car insurance premium comes with higher deductibles, it may not be a wise decision to choose such kind of cheap policies. A percentage of the claim sum paid by the policyholder during claim settlement is known as a deductible. The car insurance provider will contribute to the cost of the claim after you pay the deductible amount. The insurer’s responsibility for the claim amount is inversely proportional to the premium rate.
  • Unsatisfactory Customer Services: More comprehensive coverage, added benefits, and superior customer service are all included in more expensive car insurance policies. On the other side, a cheaper car insurance policy provides meager coverage, subpar customer service, and fewer benefits.
  • It Might Not Offer Cashless Claims: The ability to submit claims without using cash is one of the best aspects of the car insurance industry. Cashless claims for car insurance allow the owner to take their vehicle to a repair shop in the insurer’s network. The insurance company will pay the cost of the car’s repair, so you won’t need to spend any money on it. However, if you are buying an inexpensive car insurance plan, it may not provide you with the option of a cashless claim.

What Should Be Covered Under Your Car Insurance Policy?

So, if you are deciding to purchase a car insurance policy, you should be aware of what is covered under a general car insurance policy. Here is a list of features that you should look out for:

  • Financial losses for damages to your own vehicle resulting from a collision or accident are covered by your car insurance policy.
  • If your car is stolen, comprehensive insurance will pay for your losses.
  • The policy offers protection from calamities caused by nature, such as cyclones, earthquakes, and floods.
  • Accidental damage might result in human injury or even death because it is not just limited to your car. A complete insurance plan in place can aid in preventing the monetary obligations that may result in such circumstances.
  • The losses brought on by fire should also be covered by your car insurance policy.

What Add-On Covers You Can Choose To Enhance Your Car Insurance?

Before deciding on your car insurance coverage, it is advisable to look into the available add-on packages. These add-on covers can be quite helpful in the event of an accident. The following are some of the popular add-on covers you can select:

  • Zero Depreciation Cover: One of the most popular add-on coverages chosen by many insurance purchasers is the Zero Depreciation Cover. The cost of depreciation applicable for the repair or replacement of the car’s parts will be covered by the insurer if you have zero-depreciation coverage for your car. 
  • Road-Side Assistance Cover: If you frequently use your car to go outside of town, roadside assistance coverage may be very helpful. In the event that an accident or engine issue leaves you stuck in the middle of the highway, this coverage will offer you assistance. Anywhere you are stranded, the insurance company will send an auto mechanic right away to fix the vehicle.
  • Personal Accident Cover: If an accident involving the insured vehicle results in the insured person’s death, temporary impairment, or permanent disability, the personal insurance coverage will safeguard the owner of the covered car and give financial protection.
  • Engine Cover: A typical car insurance policy does not cover a car’s engine. In many insurance policies, this is typically one of the significant exclusions. Investing in an engine cover will give your engine additional protection and cover any costs associated with engine damage.
  • Tyre Protection Cover: Changing your car’s tyres can leave a significant impact on your wallet. Your insurance plan will cover the cost of the same with this add-on.
  • Return To Invoice Cover: If your car is stolen or completely destroyed, this add-on will maintain the value of your car at the amount stated on the invoice and reimburse you accordingly.
  • Consumable Cover: It will pay for all of your little expenses, such as engine oils, nuts and bolts, and more.
  • Passenger Cover: With this add-on, any harm done to your fellow passenger or their untimely demise will be covered.

Final Words

It’s not as difficult as it may seem to purchase the best car insurance. You can easily review all of the policy’s features and benefits, as well as the number of network garages your insurer offers, the add-on coverage options, and the insurer’s claim settlement rate. Following the suggestions mentioned above can immensely help you in choosing the right plan for your car.

Article Published by

Related Posts

CNG car insurance
Probus Insurance

CNG Car Insurance

Since the government started escalating fuel prices, people are aggressively shifting from petrol to CNGs as it is less polluting and may help you

Read More »