Car insurance is not only a legal requirement but also a strong shield for your pocket and the safety of your vehicle. Third-party insurance is mandatory on every vehicle in India, but choosing the right policy can reduce losses in case of accident, theft or natural disaster. Many people take the policy just by looking at the cheap premium, but later have to regret it if their claim is rejected or they get less payment. To choose the right insurance, it is important to understand the age of the vehicle, market value, driving habits, city traffic and your financial condition.
A comprehensive policy with wide coverage is better for a new or expensive vehicle, whereas for an older vehicle, only third-party policy may be sufficient. In today’s time, it is very important to pay attention to online comparison, claim settlement ratio and add-on features. Making the right choice not only saves on premium but also provides quick help when needed. Let us know what things should be kept in mind to choose the right insurance.
Understand the type of policy
First of all, understand the difference between third-party and comprehensive policy. Third-party only covers damages caused to others and is mandatory by law. Comprehensive also covers loss of your vehicle, theft, fire and natural calamities. Choose Comprehensive for a new or financed vehicle. On an old and low-value vehicle, third-party repair may be sufficient, provided you can afford the repairs yourself.
Determine the correct IDV
Insured Declared Value i.e. IDV is the current market value of the vehicle. This amount is found in theft or total loss. Keeping IDV too low reduces the premium but leads to loss in claims. Choose IDV close to the real market value as per the age and model of the vehicle. This maintains the balance of both premium and safety.
Get quotes from multiple companies
There can be a huge difference in the premiums of different companies for the same coverage. Get quotes from three-four companies on online platforms and compare not just the price but the coverage, add-ons and terms. Cheap premiums sometimes come with weak service or limited networks. The best deal can be found by comparing plans with similar coverage.
View Claim Settlement Ratio and Network Garage
Choose a company with a high claim settlement ratio, which is 95 percent or more. This increases the chances of the claim being passed easily. Also check out the large network of cashless garages, especially in your city and travel areas. A company with digital claim process and fast survey saves both time and hassle.
Select required add-ons
Add-ons like zero depreciation, engine protection, roadside assistance and return to invoice are useful for a new vehicle. These provide additional protection, but increase the premium. Choose as per your need. Expensive add-ons on an older vehicle may be unnecessary. Take only those that really add value.
Avail No Claim Bonus
If a year passes without making a claim, a no claim bonus is available, which can start from 20 percent and go up to 50 percent. Due to this, the premium gets reduced significantly on renewing the insurance. Consider saving the bonus by spending it yourself on small losses. NCB Protect add-on is also available, which helps maintain the discount even after a claim.
