How To Select The Right Car Insurance In India: A Comprehensive Guide

Updated On: 2024-09-19

Author : Team Policybachat

Choosing the Best Car Insurance Company in India can be a Challenging Task, as it depends on your Unique Needs and Priorities. What might be the Best Choice for one Person may not be for another. For some, the Top Priority might be finding a Company with a High Claim Settlement ratio, while others might Value an Extensive Network of Cashless Garages. Here’s a guide to help you make an Informed Decision:

Network of Cashless Garages

When you need repairs, a network of cashless garages can be a Huge Benefit. These are garages that partner with your Insurance Company to offer repairs without requiring you to pay upfront and then claim reimbursement. Instead, the insurer directly settles the bill with the garage. Before choosing an insurance company, check how many garages are part of their network and whether they have enough garages near your area. This convenience can make a big difference in times of need.

Claim Settlement Ratio

The Claim Settlement Ratio (CSR) is a crucial factor to consider. It represents the percentage of claims an Insurance Company has settled out of the total claims received during a financial year. A high CSR indicates that the company is reliable and has a good track record of settling claims. Opting for an insurer with a high CSR can provide peace of mind that your claims will likely be handled promptly and fairly.

Availability of Add-ons

Add-ons are additional coverages that you can purchase to extend the protection of your car insurance policy. These could include things like zero depreciation cover, engine protection cover, or roadside assistance. A good car insurance company should offer a wide variety of add-ons so you can customize your policy according to your needs. Check the availability and flexibility of these add-ons when choosing your insurer.

Customer Support Service

Having reliable customer support is essential, especially when you need help with claims or have other concerns. Some insurance companies offer 24/7 customer support, while others may only be available during certain hours or days. Consider how important round-the-clock service is to you and choose an insurer that provides the level of support you need.

Types of Car Insurance Policies Offered by Different Insurance Companies

In India, car insurance policies can be broadly categorized into three types:

  1. Third-Party Car Insurance: This is the most basic and legally required form of car insurance. It covers damages or injuries you cause to a third party, whether it’s their vehicle, property, or person. It does not cover damage to your own vehicle.
  2. Standalone Own-Damage Car Insurance: This type of policy covers damages to your own car in case of accidents, theft, natural disasters, or other unforeseen events. However, it doesn’t cover third-party liabilities, so you must purchase a third-party policy separately to comply with legal requirements.
  3. Comprehensive Car Insurance: This is the most extensive type of car insurance. It covers both third-party liabilities and damages to your own vehicle. Additionally, you can enhance this coverage by adding extra protections through various add-ons.

What Is Covered Under Car Insurance?

Car insurance provides a safety net for various situations that could result in financial loss:

  • Accidents: Coverage for damages resulting from unforeseen accidents.
  • Theft: Compensation up to the insured declared value (IDV) of your car if it’s stolen.
  • Natural and Man-made Calamities: Protection against events like floods, earthquakes, vandalism, and more.
  • Personal Accident: Coverage for the owner-driver in case of disability or death due to an accident, up to Rs. 15 lakh.
  • Third-Party Liability: Financial protection against claims from third parties for injury, disability, or death caused by your vehicle.

What Is Not Covered Under Car Insurance?

While car insurance covers a lot, there are some exclusions:

  • Electrical and Mechanical Breakdowns: Issues like engine failure are generally not covered.
  • Wear and Tear: Normal aging of your car parts is excluded.
  • Driving Without a Valid License: If you have an accident while driving without a valid license, your claim could be rejected.
  • Consequential Loss: Damage indirectly caused by an event, such as a car breakdown, may not be covered.
  • Driving Under the Influence: Accidents occurring while you are under the influence of alcohol or drugs are excluded.
  • Illegal Use of the Car: If your car is damaged while being used for illegal activities, it won’t be covered.
  • Commercial Use of a Private Car: Using a privately insured car for commercial purposes may void the coverage.
  • Depreciation: The natural decrease in the value of your car over time isn’t covered unless you have a zero depreciation add-on.
  • Contributory Negligence: If your actions contribute to the damage, such as driving recklessly, the insurer might not cover the costs.

How to Buy the Best Car Insurance Policy

Purchasing Car Insurance is Simple when you follow these steps:

  1. Visit PolicyBachat: Start by visiting our Website, where you can explore the Car Insurance Section and Compare Quotes from multiple insurers all in one place.
  2. Enter Your Car’s Details: Provide essential details such as your car's Registration Number, Brand, Model, and other relevant information to get accurate quotes.
  3. Compare Quotes: After submitting your car details, you'll be presented with a range of insurance options from different providers. Compare the premiums, coverage benefits, and available add-ons to select the best policy that meets your needs.
  4. Fill in Personal Details: Enter your personal information and nominee details to proceed with the policy of your choice.
  5. Make the Payment: Once you’ve selected the best policy, complete the purchase by paying online. Your policy document will be sent to your Registered Email instantly.

At PolicyBachat, we help you find the Best Car Insurance Policy by providing a platform to compare multiple options, ensuring you make an informed decision that fits your budget and requirements.

How to Make a Car Insurance Claim

Filing a claim can be a smooth process if you follow these steps:

  1. Contact the Insurer: Inform your insurance company about the accident or theft within 48 hours.
  2. File an FIR: If a third party is involved or your car has been stolen, file a First Information Report (FIR) with the police.
  3. Submit Necessary Documents: Provide the required documents, including the claim form, a copy of the FIR, and your policy details.
  4. Assessment by Surveyor: The insurer will send a surveyor to assess the damage.
  5. Repair and Cashless Service: If your car is repairable, it will be sent to a garage. If the garage is part of the insurer's network, you can avail cashless service.
  6. Theft Claims: In case of theft, once the police provide a non-traceable report, the insurer will pay the insured declared value (IDV) of your car.

Conclusion

Choosing the Best Car Insurance in India depends on your specific needs. By carefully considering factors such as the network of cashless garages, claim settlement ratio, availability of add-ons, and customer support service, you can find the insurer that best fits your requirements. Remember, the Right Insurance Policy not only protects your Car but also provides peace of mind, ensuring that you are covered in case of any unforeseen events on the road.

Car Insurance Companies FAQs

Which is the Best Car Insurance Company in India?

The Best Car Insurance Company depends on factors like Claim Settlement Ratio, Number of Network Garages, Insured Declared Value (IDV), and Available add-ons. For 2023-24, top companies include IFFCO Tokio (96.44%), Royal Sundaram (94.07%), Oriental Insurance (93.16%), Universal Sompo (92.45%), and New India Assurance (92.23%).

Will Insurance Companies Cover all damages in an Accident?

Coverage depends on your Policy. Third-party Insurance Covers other People's Damages, standalone own-damage Covers your Car’s Damages, and Comprehensive Insurance Covers Both.

Do Insurance Companies check the Car’s Condition in India?

No Inspection is needed for third-party Insurance. For comprehensive Policies or Add-ons like Zero Depreciation, an Inspection is Required.

How do Insurance Companies Estimate Car Damage?

They Calculate the Damaged Parts' Current Value and Deduct the Depreciation to Estimate the Loss.

How to Know if a Car Insurance Company is Reliable?

Check the Company's Reputation, read Customer Reviews, and Review its Claim Settlement History.

Why is a Network of Cashless Garages Important?

A Broad Network ensures Easy Repairs without Upfront Payments. Check if Garages are near your location.

Can I Customize my Car Insurance Policy?

Yes, many insurers offer Customizable Policies with add-ons to match your needs.

What factors to consider when choosing a Car Insurance Company?

Consider Claim Settlement Ratio, Network of Cashless Garages, Coverage Options, and Customer Support.

Is a High Claim Settlement Ratio the only thing to look for?

No, also consider the Company’s Service Quality, Coverage Options, and Customer Reviews.

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