If you’ve recently purchased your dream four-wheeler or are in the process of buying one, have you taken out the time to think about the car insurance you’ll be moving forward with? Choosing the right car insurance takes as much time, and due diligence as picking the right car does. Moreover, you cannot take your vehicle on the Indian roads without valid, active car insurance. If you’re ever caught driving an uninsured vehicle, you will be charged with heavy fines and penalties by the concerned authorities. 

When something is so important, it becomes crucial to pay special attention to it. If you’ve begun the search for car insurance, but are not sure how to pick the best option, consider the following factors to ensure you get the ideal insurance for your vehicle.

Also read: Benefits Of Choosing Comprehensive Car Insurance Over Third Party Cover

1.     Choose the Ideal Type of Car Insurance from the List Below:

The search for the perfect car insurance starts with understanding your requirements. Decide what you want and then proceed to take a pick from the following:

●      Third-Party Car Insurance:

Third party car insurance is the most basic insurance type that vehicle owners are mandated to have by law. This insurance secures car owners against any financial damages caused to third-party properties and third-party individuals during a road accident. A downside of third-party insurance is that it does not cover losses caused to the vehicle owner during a road accident.

Also read: Car Insurance Cos Come To Bhopal Residents' Rescue, Initiate Claims

●      Comprehensive Car Insurance:

If you want better coverage, proceed with comprehensive car insurance. This insurance covers the policy owner against third-party financial losses and own damages, providing better coverage and security. You can also enhance the security by opting for specific add-ons you feel can improve the policy coverage.

●      Own Damage Car Insurance:

If you want to cover damages caused to you and your car alone, you must opt for own damage car insurance coverage.  Own Damage Insurance is a customized motor insurance policy designed to protect you and your insured vehicle from your own damages, mainly of damages and losses caused to your own vehicle. This particular insurance policy also covers damages caused due to natural calamities, road mishaps, etc.

Even though own-damage car insurance is a standalone policy, its functionalities come to a better use when you have third-party insurance by its side. Therefore, it is advisable to have a third-party insurance and then opt for an own damage car insurance policy.   

Also read: Driving Habits Soon to be a Determiner of Your Car Insurance

2.     Check the Insured Declared Value (IDV)

A vehicle’s car insurance premium is greatly influenced by its IDV. For the uninitiated, the Insured Declared Value (IDV) is the vehicle’s current market value. Like other tangible assets, even cars depreciate in value due to natural wear and tear, ultimately reducing their market value.

Some tend to confuse IDV with the vehicle’s current resale value, so make sure you don’t fall into this confusion. IDV is just the vehicle’s current market value and not resale value. While booking insurance, digital insurers allow you to select your car’s IDV from a given range. Always remember that the higher the car’s IDV, the higher the premium, and vice-versa. 

3.     Look for Claim Procedure & Approval Reviews

The very reason to get car insurance is to get hassle-free and quick assistance from the insurer. You wouldn’t want yourself going through a complex, time-consuming claim process after having met with an accident. So before shortlisting any insurance, always check the insurer’s claim procedure and approval reviews online.

Genuine reviews from real customers can help you a lot in picking a reliable insurance partner. You can join Facebook groups, subreddits, forums, or other online communities built around insurance to easily find, connect, and ask questions about claim procedure and approval reviews from people who’ve had an association with the particular insurance company.

4.     Compare Similar Policies from Other Insurers

Once you’re clear about your requirements, you should start looking for at least two to three policies from different insurers. The more options you compare, the closer you’ll get to the ideal policy. Luckily, comparing policies is not that hard. You can look for websites that compare different car insurance plans from various insurance companies or create exhaustive online resources around car insurance plans that are enough to help you make a decision.

You can also consider taking the help of online insurance premium calculators to understand how much premium you’ll end up paying for the type of car insurance you choose. These calculators also make policy comparisons an easy task, so make sure you use them during your research phase.

Also read: Rental car company Hertz orders 1 lakh Teslas worth $4.2 bn

5.     Check the list of Add-ons Being Offered

Add-ons, also known as riders, are purchased separately to enhance the coverage of a selected policy. Though not all the policies offered by various insurers will have the same add-ons, some of the standard riders that you can find include:

Ø  Zero Depreciation Cover: An add-on that ensures the final settlement is calculated on the original value and not depreciated value.

Ø  Engine Protection Cover: This add-on covers the damages caused to the engine and gearbox due to oil leakage, water damage, etc.

Ø  Roadside Assistance: It helps significantly when a vehicle breaks down on the road and needs immediate roadside repair assistance.

Ø  Consumable Cover: This rider covers your car’s consumables like oil, nuts, bolts, screws, etc.

Ø  Return to Invoice Cover: An add-on that ensures you get an ex-showroom price of your car and not IDV if it gets stolen or damaged beyond repair.

Ø  Tyre Protection Cover: This add-on covers your car tyres against losses arising from tyre bursts, cuts, bulges, etc. Tyres aren’t covered in any standard car insurance and need separate protection.  So if you’re purchasing own-damage car insurance, you might want to purchase this rider along with a few others for better coverage.

Purchase only those add-ons that are needed as each add-on will increase your premium amount.

6.     Ask About Voluntary Deductibles

Once an insurance company approves the filed claim, they pay a significant part of the claimed amount. The balance amount is paid by the insured, which is called a deductible. If you agree to pay a higher deductible, the insurance company might reduce your premium. To calculate an approximate amount you’ll be able to comfortably pay to cover for losses from road mishaps and propose them a higher deductible accordingly. 

7.     Double-check the Inclusions & Exclusions

Not all four-wheeler insurance policies are created equal, so a wise step is to double-check the list of inclusions and exclusions explicitly mentioned in the policy document. For example, just because you’re purchasing standard car insurance doesn’t mean it will cover your car tyres.

If you want those covered, you’ll have to buy an add-on for them. There are various other things that are usually not covered in standard car insurance, so it’s best to clearly check what is covered and what is not, instead of assuming it covers everything. It will save you from unpleasant shockers during claim settlement.

8.     Choose Policies where Premiums are Affordable

Don’t choose a policy with a higher premium that you cannot comfortably pay. Use online premium calculators to find a car insurance policy that offers decent coverage and comes with affordable premiums.

It will ensure you don’t end up missing a timely premium payment. Even a single lag in premium payment can prevent you from getting the No Claim bonus benefits and even affect your insurance portability request at a future date.

9.     Understand the Insurance Terminologies

Before you start searching for car insurance, get acquainted with insurance terminologies. It will help you better understand all the car insurance plans you have to review, assisting you in making the right decision.

Some of the terms you should clearly understand are IDV, deductibles, no claim bonus, etc. A quick online search will show you the complete list of insurance terminologies along with their meaning in layman’s terms for better understanding, so do check it out. 

If you consider all the factors discussed-above while picking car insurance, your chances of making any mistake will be avoided.

Also Read - Benefits Of Choosing Comprehensive Car Insurance Over Third Party Cover