Top Tips to Find the Best Car Insurance in India for Your Car
Buying a car is the greatest milestone in your life. So, if you want to protect it at any cost, there is no better way than buying car insurance.
It shields your car from unforeseen risks, such as accidents, theft or third-party liability. In fact, the Ministry of Road Transport and Highways reported that over 70% of cars in India are insured, showing its necessity.
Moreover, driving without insurance can lead to a heavy fine of up to ₹2,000 and over 3 years imprisonment. So, continue reading to learn how to choose the best car insurance in India.
9 Top Tips to Find the Best Car Insurance in India
For first-time buyers, choosing the best plan from the multiple insurance providers can be a little overwhelming. Therefore, follow the tips below to find the best car insurance in India without any hassle.
1. Understand Your Requirements
Before finalising an insurance provider or proceeding with car insurance renewal, take a moment to understand what you truly need. Start by evaluating your usage pattern, the make and model of your car, as well as its current age. There are mainly three types of car insurance: third-party, own-damage and comprehensive insurance policy. Since third-party insurance is mandatory under the Motor Vehicles Act, 1988, you can build additional protection around it based on your preference.
2. Verify Insurance Inclusions & Exclusions
Review the policy documents carefully to verify whether all your required facilities are covered under it. For instance, most of the comprehensive insurance companies give coverage for third-party liability, theft of the vehicle, and damages caused by natural and man-made disasters.
3. Compare Premium Amount
The premium amount for car insurance can vary across different companies. This is why you should compare the plans online based on your budget and choose the best one. However, the premium amount might vary depending on your location and the condition of your car.
4. Evaluate the Insured Declared Value (IDV)
Insured Declared Value or IDV is a compensation amount your insurer will pay if your car gets damaged extensively or is stolen. Therefore, to choose the best car insurance in India, ensure your insurer is ready to provide an IDV equivalent to your car’s current market value.
5. Check out Add-on Coverage
The add-on cover, also known as the riders, is an extra benefit you can get above the actual coverage offered in the insurance policy. In most cases, it includes roadside safety assistance or engine protection. So, always choose a policy with some good add-on benefits in case you need wider protection.
6. Ensure Easy Reviewability
A reliable insurance provider will always offer a smooth and hassle-free car insurance renewal process. In fact, easy renewability will help to keep your plan active at all times, so you never face a risk of losing any coverage benefits.
7. Analyse the Claim Settlement Ratio
Claim Settlement Ratio is the percentage of insurance claims an insurer successfully pays annually out of the total claims. Therefore, if your insurer has a high claim settlement ratio, it means receiving a cashless or reimbursement claim under them is quick and easy.
8. Ask About No-Claim Bonus
Many insurance companies offer a good rate of discount in a claim-free year. This reward, also known as a no-claim bonus, can go up to 50%. So, before choosing a car insurance plan, ask your provider whether they are offering this bonus.
9. Assess the Network of Cashless Garages
To help you repair your car without any upfront payment, a car insurance policy must be associated with a good number of cashless garages. Thus, always purchase a policy from the providers who have a good number of cashless garages within your location.
The Bottom Line
To get the best car insurance in India, follow this guide. Whether you are buying a new car or a second-hand one, securing it with insurance is extremely necessary.
So, compare different policies based on these parameters and secure your car for the long run, ensuring financial protection, legal compliance, and peace of mind against unforeseen damages or liabilities on Indian roads.