How to buy car insurance in India

Buying car insurance is tricky. To choose the right car insurance for you, you will need to dedicate a bit of your time and effort. There are several motor insurance companies in India that provides car insurance. Choosing the best out of them is quite a task. Here we help you with how to proceed with buying car insurance in India.

Choose your insurance provider

Choosing the right car insurance company is one of the key decisions to make. You will have to research a bit to make a flawless buy. To decide the best car insurance provider, you must compare the factors like:

  • Which company is providing a better coverage,
  • The company that has a hassle-free claim procedure,
  • Which car insurance company gives round the clock customer support,
  • If the company has a cashless facility,
  • Which company offers the chargeable or free add-on benefits
  • The company that offers a better no claim bonus policy, etc.

Compare the car insurance providers on these parameters and then take your pick. You should also keep a check for new companies in the market that provide car insurance.

Choosing your Insurance Policy

You can buy one of the two types of car insurance policy: first one is third party liability, which is the minimum policy that you have to compulsorily buy. It covers the injuries caused to third party or the other people in an accident. The second one is Comprehensive Car Insurance that covers the third party liability along with personal accident or self-vehicle damage and theft. It is recommended that you go with the Comprehensive car insurance policy though it may cost you a higher premium but will provide you with more coverage.

Look for some Add on facilities

Look for some additional benefits with your car insurance policy like zero depreciation, where you get the full reimbursement of your car parts as per their actual value and not the depreciated value, or NCB protect where you are given discount of no claims. Other add-ons that may work for you are all time road assistance, towing amenities etc. These may cost you extra premium, so be careful in choosing these.

Keep the form and documents ready

Keep the form ready with essential details like car number and type, your name, contact, address etc. You may also need some passport size photographs. A copy of Registration Certificate (RC) and previous insurance policy (if any) will also be needed.

Declare Insured’s Declared Value (IDV)

IDV is the insured declared value of your car. It is the amount that the car insurance company provides the insured at the time of claim. Some people declare low IDV to keep their premium low but it backfires mostly because at the time of claim they do not get the entire amount. This only leads to financial losses.  Hence you should make sure to declare the correct IDV.

Get your premium calculated

Your insurance provider will calculate your premium based on the factors like:

  • IDV
  • Model and make
  • Fuel type
  • Brand of the car
  • Location
  • Cubic capacity of engine
  • Your claim history, etc.

To keep your premium low, you can go for things like Voluntary Deductibles, NCB, Anti-theft equipment installation etc. Voluntary Deductible is a small amount, which the insured has to pay from his own pocket while making a claim. No Claim Bonus is given to people who do not make claims against their policy. Also, installing Anti-Theft Equipment, which are enhanced security features where the chances of stolen vehicle are very low, is beneficial for the insured.

It is better to buy car insurance online as it saves much effort and money. It is simple and hassle-free way of buying car insurance.

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