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Things to Consider When Buying Car Insurance in India

Published On Jan 19, 2021, Updated On Jul 06, 2021

It is mandatory to drive a car in India with insurance to deal with any financial implication that might arise if any eventuality has to happen on road. There are several factors to consider before choosing to buy an insurance policy to make justice for the premium paid.

Car owners buy motor insurance to protect them and the vehicle from financial liabilities and legal troubles in case of any mishaps. Broadly, there are two main types of insurance policies in India, namely third party liability insurance and comprehensive car insurance policy. Dozens of car insurance companies offer these plans for vehicle owners in India. But before choosing a plan, it is important to evaluate several companies and their available plan to make justice for the money spent.

Before starting to look for an insurance plan, it is important to ascertain one’s requirements and understand the type of car insurance cover that one wants to buy. Understand the priorities and choose a plan that renders comprehensive coverage at an affordable cost.

Things to Consider When Buying Car Insurance in India

The Thing to Consider Before Buying Car Insurance in India

It is mandatory to drive a car with insurance and it also offers protection for the car and the owner against financial implications. Some important aspects to consider while buying car insurance in India are as follows:

1. The Terms of the Policy:

It is important to read the complete policy document thoroughly and understand its terms and policy benefits thoroughly. It is important to understand the conditions that the policy didn’t cover as well and have a thorough understanding of both its inclusion and exclusion criterion, to make an informed decision.

2. Declared Value:

The Insurance Declared Value is the maximum sum insured in case of total theft or loss of the car. The premium is calculated based on the car model and this IDV, which keeps decreasing as the car gets older. Choose a plan that has a high IDV as it offers the highest compensation for the vehicle.

3. Reputation of the Insurance Provider:

Check the performance of the insurance company online and understand the reputation of the insurance provider. Assess the value of their Car Insurance claims settlement ratio and how efficient and fast the company is, while settling the claims.

4. Large Network of Garages:

Choose an insurance provider who has tie-ups with a large number of garages. This will help with cashless and hassle-free damage correction, without having to spend anything from one’s pocket.

5. Riders with the Car Insurance:

The value of the insurance policy can be extended with the help of policy riders. The riders are add-on covers that can be added to an existing policy with the payment of an additional premium. It is important to choose a plan that offers maximum riders such as personal accident cover, on-road assistance, zero depreciation cover, No-Claim Bonus protection, etc.

6. Easy Claims Procedure:

This should be the ultimate quality of any motor insurance policy. Choose an insurance policy that has the easiest and hassle-free claims settlement process, to avoid financial constraints.

Also, Read

Different Types of Cars Explained! A Detailed Guide

Benefits of Long Term Car Insurance Policy

Bottom Line

One important thing to do before buying an insurance policy is to shop around for the best policy before renewing an existing one. It is easy to shop around for the best policy online and compare quotes and terms before buying the best possible plan for the car.

Disclaimer: 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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