Car insurance is not just a legal formality - it's a financial safety net. With dozens of insurers and policy options in India, selecting the right plan can be confusing. Should you go for third-party or comprehensive? Which add-ons are worth it? In this guide, we’ll walk you through key factors to help you make an informed decision.
Understand the Types of Car Insurance
Before anything else, decide between:
- Third-Party Insurance: Legally mandatory and covers damage to others.
- Comprehensive Insurance: Covers third-party plus own damage, theft, natural disasters, and more.
- Standalone Own Damage: Optional for additional vehicle protection.
Tip: If your car is new or frequently used, comprehensive is usually the better choice.
Check the Insured Declared Value (IDV)
IDV is the maximum sum your insurer will pay if your car is stolen or totaled. While lowering IDV can reduce your premium, it also reduces your claim payout.
Example: Ramesh owns a 3-year-old sedan. Two insurers offer him different IDVs - ₹4.2L vs ₹3.6L. The second one is cheaper but would give him a lower payout in case of theft. He opts for the first.
Evaluate the Premium vs Coverage
Don’t fall for the lowest premium. Instead, compare:
- What’s covered under own damage
- Policy exclusions
- Add-on availability
- Network garages
Look for insurers with wide cashless garage networks and strong customer reviews.
Check Claim Settlement Ratio (CSR)
A high CSR (95%+) shows that the insurer honors most claims. IRDAI publishes CSR data annually - use it to shortlist reliable insurers.
Choose Relevant Add-ons
Add-ons enhance your coverage. Common ones include:
- Zero Depreciation: Full claim on replaced parts
- Roadside Assistance: 24/7 towing, battery jumpstart, etc.
- Engine Protection: Useful in flood-prone cities
- Return to Invoice: Pays the full invoice value in total loss cases
Read the Fine Print
Check waiting periods, deductibles, exclusions, and NCB terms. Always read the policy document before buying.
Conclusion
The best car insurance policy is one that matches your needs, budget, and driving habits. Use PolicyBachat to compare quotes, evaluate coverage, and buy the right plan in minutes.