Things to Consider When Buying Car Insurance in India

Posted on June, 2021

As a car owner, the wisest decision one can make is to buy a comprehensive car insurance policy. Not only does it cover the legal aspect of compulsorily having third party car insurance, but also provides financial cushioning to cover car-related expenses. In the last decade, the car insurance sector in India has evolved to offer efficiency and convenience, where you can buy a car insurance policy online in just a matter of clicks. However, with the easing of the process comes numerous car insurance products with different features and benefits. Therefore, it is vital to know what to look for in a car insurance product to buy the most suitable one for your vehicle.

Things to consider when buying a car insurance policy

  • Adequate Coverage:

    The car insurance policy must not fall short in covering all the expenses you can incur. You must access personal risks related to your travel and analyse your vehicle’s needs to ensure the policy has adequate coverage.
  • Premium Amount:

    The premium amount is to be paid regularly. It should be in your budget, and should be adequate for a policy to cover your car’s expenses. It should consider the features you want in your policy and avoid unnecessary features that can increase the amount.
  • Add-on Covers:

    Add-on covers offer extra insurance cover for damages and events over and above the current policy. Capable of saving a huge amount, you should consider adding these when buying a car insurance policy.
  • Policy Terminology:

    Although insurance companies have made it easier to understand the policy, a thorough understanding of the terms and policy always proves beneficial. You should consider consulting with your insurance broker to understand the policy terminology.
  • Location and Cubic Capacity:

    Location and the cubic capacity (power produced by the engine) highly affects the cost of your car insurance policy. If you live in metro cities where the chance of an accident is higher and have a vehicle with a higher cubic capacity, the premium amount will be higher.
  • The IDV Value:

    The Insured Declared Value is similar to the current market price of the vehicle after a period of time. The insurance company allows you to choose the IDV value from a range. The lower the IDV value, the lower the premium amount.
  • Cashless Facility

    Under the cashless facility, the insurance company directly pays and settles the expenses with the garage. For ease of payment, you can consider a car insurance policy that offers a cashless settlement.
  • Deductibles:

    A ‘deductible’ means the amount you pay before the car insurance policy covers the expenses. You should consider analysing your car needs and then choose a deductible amount. The higher the deductible, the lower the premium amount.
  • No Claim Bonus:

    Insurance companies offer a discount on policy renewal premium for every claim-free year. You should consider NCB before buying the policy as it can lower the premium cost on renewal.
  • Zero Depreciation Cover:

    You should consider adding a zero depreciation cover to your car insurance policy. With a zero depreciation cover, the insurance policy will pay the entire claim amount without deducting the depreciation sum.
  • Online Insurance:

    Mostly, online car insurance policies are more affordable than traditional car insurance policies bought physically. It can also allow you to save time and resources as you can buy them in a matter of clicks.
  • Exclusions:

    Depending on the insurance company and the features of the policy, car insurance plans have certain exclusions that they do not cover. Some examples include normal wear and tear, accidents outside the operational geographical area etc. Before buying, you should carefully look and discuss the exclusions with your insurance broker.

A car insurance policy should be well-thought to cover every factor that can negatively affect your travel and create a financial burden. A comprehensive and suitable car insurance policy is an ideal investment in order to cover car expenses and road-related eventualities. If you are thinking of buying a customised car insurance policy that takes all the factors mentioned above into consideration, look no further than PINC Insurance Having years of experience in furnishing quality insurance policies, PINC Insurance offers the most affordable yet comprehensive insurance policies in the market.