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Tips To Choose The Right Car Insurance Policy In India

Wish

Written by Udit Varshney

Updated Oct 15, 2023

This article mentions certain tips that will help you to choose the right car insurance policy in India. It begins with an introduction of why buying insurance is important and then elucidates the tips in detail.

Buying car insurance is one of the first steps towards protecting your dream car against damages that might be caused due to an accident or a natural disaster. In India, it is mandatory for all car owners to have a car insurance policy as per law and there is no way of escaping this responsibility. Different car insurance policies come with different benefits and it would be wise to weigh some of the options before you purchase or invest in one. To learn how you can choose the right car insurance policy, read on for some handy tips. 

Tips To Choose The Right Car Insurance Policy In India

Tips To Choose The Right Car Insurance Policy In India 

The following are a list of tips that will help you to choose the right car insurance policy in India - 

  • Select The Right Cover

In car insurance, there are broadly two types of insurance, namely, a third party damage insurance and a comprehensive insurance. A third party damage cover will only compensate your liabilities for damages caused to another car, individual or a property. But, a comprehensive cover will cover your own car as well as any injuries that might be sustained by you. Hence, choose your cover wisely for maximized benefits. 

  • Check Your Insured Declared Value (IDV)

The Insured Declared Value (IDV) is the maximum amount of money that you receive in case your car has been stolen or damaged beyond repair. In India, the IDV of a car insurance policy corresponds to the current market value of your car and you should not settle for any policy that comes with a lesser amount. If you choose a lesser IDV, it will not match the associated costs of maintaining your car, leading to greater expenses in the long run. 

  • Check Premium Rate

Buying any kind of insurance policy comes with the affordability question and you must consider the premium rate before buying a car insurance policy. However, simply purchasing a policy with a lower rate of premium is not advisable. While you might think that a lower premium will be economical, in reality it comes with restricted benefits. Therefore, settling for a slightly higher rate of premium is advised to reap the best out of your car insurance policy. 

  • Check The Claim Settlement Ratio (CSR)

The claim settlement ratio (CSR) refers to the number of claims that has been successfully settled by a car insurance provider in a single policy year. The higher the ratio, higher is the number of settled claims. Hence, you should check whether the car insurance provider you choose has a high CSR or not as it assures a hassle free process of filing and receiving your claims. 

  • Compare Car Insurance Plans Online

Comparing different policies online is an important step towards finding the right car insurance policy in India. It will help you to see the different quotes, premium rates, IDV and other services of different policies at once and aid you in selecting the policy that is best suited for your car and financial requirements. This tip eases your dilemma of choosing any one plan between two or more and gives you an unbiased perspective of which is the best car insurance policy. 

Take Away

Listed above are some tips that you can use to choose the right car insurance policy in India. It will hopefully aid you in clearing your doubts and selecting a plan that is best suited for your car and finances. You must always remember to buy a car insurance policy as it ensures a protected future for yourself and your 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.

Wish

Written by Udit Varshney

Udit has built B2C segments across various industries and has had significant contributions to the insurance sector. Read More

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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