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Guide To Choose The Right Car Insurance Plan

Written by Amit Jain
Updated On Oct 18, 20232 min read

Guide To Choose The Right Car Insurance Plan

In India, having a third-party car insurance plan is a must-have for all car owners. As per the Motor Vehicles Act of 1988, it is in fact mandatory for all car owners to have a third-party car insurance plan. A car insurance plan provides financial coverage against any loss that is incurred to your car. Owing to the bunch of benefits offered by car insurance plans, it becomes important to purchase them. However, there are certain things that you need to consider while buying the right car insurance plan. Here is a guide that will help you choose the right car insurance plan. 

Guide To Choose The Right Car Insurance Plan

Tips to Buy the Right Car Insurance Plan

Listed below are some of the tips that will help you in buying the right insurance plan. Scroll through the section below and get the right insurance plan for yourself:

  • Compare Different Plans: With so many car insurance plans available, it often becomes difficult to pick the right car insurance plan. So, in such a case, it is best to compare the different car insurance plans available. You should compare the benefits offered under different car insurance plans, check its premium, and then invest in any car insurance plan.
  • Check for Discounts: Many a time, different car insurance companies in India offer discounts on car insurance plans to grab the attention of policyholders. It is thus a good idea to buy car insurance plans at such times and get discounts on car insurance premiums.
  • Pick The Right Car Insurance Type: Broadly, there are different types of car insurance plans available. The different types of car insurance include third-party car insurance, comprehensive car insurance, and standalone own-damage car insurance. Out of these, third-party car insurance is mandatory and the rest can be bought along with this. However, it is ideal to buy comprehensive car insurance plans.
  • Check The Insured Declared Value: The Insured Declared Value or IDV is the maximum value that your insurer will pay you back in case your car is damaged or lost. So, it is very important to set the right IDV as this amount will be reimbursed to you. The IDV of your car is calculated based on the date of registration, the manufacturing date of the car, the model of the car registration certificate, and more.
  • Be Wise in Choosing the Add-ons: It is very important that you add the right add-ons to your car insurance plan so that the car insurance premium is not high. The different types of add-ons that you can include to your car insurance plans are zero depreciation cover, no claim bonus cover, consumables add-on cover, roadside assistance cover, and many more. You need to however remember that you should not randomly keep including add-ons as this will simply increase the premium of your car insurance plan.
  • Choose the Right Insurer: Apart from everything else, you also need to choose the right car insurance company. While picking a car insurance plan for any particular car insurance company, you need to check the customer service of the insurer. You need to make sure that the car insurer has a dedicated support team that is available to answer your queries 24*7. 
  • Claim Settlement Ratio: The claim settlement ratio determines the company’s efficiency in settling car insurance claims. The higher the claim settlement ratio, the higher will be the company’s reliability in settling the claims raised by the policyholder. So, it makes sense to buy car insurance plans from a company that has a higher claim settlement ratio. 
  • Network Garage: A network garage is one where car insurance policyholders can get cashless claim settlements. When you get your vehicle repaired at a network garage, you need not worry about spending anything from your own pocket. Thus, the greater the number of network garages, the more beneficial it will be for you to enjoy the benefits of cashless claim settlements. 
  • Check for Deductibles: Many a time, there are deductibles associated with car insurance plans. This means that a part of the claim amount will have to bear from the policyholder’s pocket. So, it is very important that you check the deductibles while buying a car insurance plan.
  • Take Away

Thus, you should keep the above-mentioned points in mind while buying a car insurance plan in India. For further assistance on car insurance plans, you can also contact us and get all the relevant details on the same.


This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
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Written by Amit Jain
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 Amit is an upcoming name in the motor industry be it new cars/ bikes or used ones. Amit in his last stint worked as a consultant for major Fortune 500 companies across the globe. In his free time, Amit likes to play cricket.

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