Car Policy Selection Guide: Tips for Best Comprehensive Car Insurance
Most people in India buy car insurance out of necessity, rather than prioritising their safety. It should not be this way. When people purchase a vehicle, they compare a variety of its features. However, while buying insurance for it, people usually see only the premium amount. Similar to automobiles, it is equally important to compare features in insurance rather than just comparing premiums. Therefore, if you have a car or are planning to purchase a new vehicle, it is vital to understand all the aspects of motor insurance to make a better decision and enhance the benefits.
What is Comprehensive Car Insurance?
As the name suggests, a comprehensive car insurance covers nearly every aspect of motor vehicle insurance, comprising own damage, third-party liabilities and personal accident cover, along with a host of optional add-ons to strengthen the policy coverage.
Tips to Get the Best Comprehensive Car Insurance
As per the Indian Motor Vehicle Act, it is mandatory to have at least third-party insurance. However, it only covers liabilities arising from third-party claims. That's why it is important to have comprehensive insurance that provides complete financial protection, including third-party liabilities, accidental damage, theft, natural/man-made disasters, and fire. This way, it ensures complete peace of mind for your vehicle and vehicle owners.
Here are some expert-backed tips to help you get the best comprehensive car insurance policy for all-around coverage.
1. Check the IDV
An IDV (Insured Declared Value) represents the current value of your car in the market. So, the higher the IDV is, the higher the insurer will pay as compensation in case of any mishap. However, a higher IDV also means a higher premium. Therefore, it is always advisable to compare IDV values from different insurers to get the best IDV at the lowest premium.
2. Compare Quotations
Evaluate multiple insurance policies from various insurers and look for the claim settlement ratio, ease of claim process, their garage network, coverage areas, and, most importantly, customer reviews. A claim settlement ratio, often represented as a percentage, reveals the total claims settlement by an insurer out of the total claims applications received. An average CSR of over 90% is considered a good norm. Additionally, one should always choose a reputed insurer with a wide network for easier, hassle-free and cashless repairs.
3. Choose Deductible Amount Wisely
It is an amount that a policyholder agrees to pay out of their pocket. This can reduce the overall premium. However, you should choose a deductible that you can comfortably afford at the time of a claim.
4. Opt for a No Claim Bonus
No Claim Bonus (NCB) is the reward offered by insurance companies for making no claims during a policy period. The NCB is then provided in the form of a discount on the premium of your next policy.
When renewing your motor insurance, always opt for the no-claim bonus. One must note that NCB increases to a maximum of 50% after five consecutive claim-free years. Always remember to renew your policy on time to avoid losing the NCB bonus.
5. Choose the Add-ons as Per Your Requirement
Do not settle for every add-on that an insurer puts on your policy. Not all add-ons might be very beneficial for you. Choosing the right add-ons is essential to suit your needs & requirements best for an all-around coverage and protection.
Some of the common and most useful add-ons are mentioned below: -
- Zero Depreciation: This is a must-have feature for a new car, ensuring you receive a full claim without any depreciation.
- Return to Invoice: This cover will get you the full invoice value of the car in case of total loss or theft.
- Roadside Assistance (RSA): It provides 24/7 support for emergency situations like breakdown, battery jump-start, fuel delivery, towing, and minor on-spot repairs. However, several brands offer complementary RSA with new vehicles or extended warranty packages.
- Engine Protect: It covers engine damage caused by oil leakage or water ingress. It is crucial for those living in areas prone to flooding or high rainfall areas.
6. Ask for Discounts and Offers
When you renew or bundle policies with the same insurance company, you become eligible for loyalty discounts. Some brands also offer discounts on cars equipped with certified anti-theft systems.
7. Check for Long-term Policies
Opting for 3-year or 5-year comprehensive policies may be a one-time burden on your pocket, but it can result in significant savings compared to annual renewals. It may also protect you from future premium hikes.
It's About Finding Complete Protection
Buying a motor insurance policy deserves equal value as buying a new car. Hence, a buyer should understand all aspects of motor insurance to get complete coverage and enjoy various benefits. Following the tips mentioned above can help you make a wise decision to protect you and your loved ones.
FAQs
- Is third-party and comprehensive insurance the same?No, third-party insurance only covers damages caused to third party and their properties, whereas a comprehensive insurance policy covers both own damage and third-party liabilities.
- How to get the best comprehensive insurance policy for a car?To get the best comprehensive policy for your car, one should understand all aspects of a motor vehicle insurance, including IDV, deductibles, NCB and optional add-ons.
- What is 50% NCB?50% NCB means 50% no-claim bonus, which is provided in the form of a discount on the premium of your next policy.