To drive your car on any Indian road, you must have third-party liability car insurance online or offline, according to the motor vehicles act of 1988. As a result, as a new car owner, the most important thing to do before driving your car is to purchase a car insurance policy.
But how do you select car insurance?
You may have to consider several factors to identify an ideal insurance policy. To make things easier, we’ve created a checklist to look for when purchasing a car insurance policy.
How do you pick the ideal car insurance company?
Multiple high-end organisations in the indian general insurance market are legally registered under IRDAI, the insurance regulatory body, to sell and to renew car insurance. #
But how do you choose which service to use for your insurance coverage?
Given the advent of digital platforms, this is a relatively easy task. Conduct a background check on the company. Here is a checklist for you to follow while doing the same:
- Claim settlement ratio and process:
A claim settlement ratio compares the total number of claims filed to the number of claims settled by the insurance company. The larger the claim settlement ratio, the more likely your shares will be determined.
Additionally, it would help if you were looking for a simple online claim settlement process to reduce your hassles when filing claims. *
- Insured declared value:
The IDV is the highest sum assured determined by the insurance company and provided in the event of theft or irreparable damage to your vehicle.
In layperson’s terms, IDV is the price of your car as determined by the manufacturer, less depreciation. Your insurance company will pay you this if your vehicle is completely lost or stolen. *
To maximise the benefits of your insurance policy, look for insurance providers who allow you to customise the IDV value. *
Advice: use an online car insurance calculator to find affordable premiums that cater to your needs.
- Around-the-clock assistance:
Customer service is one of the essential factors to consider when choosing an insurance provider. For example, you can get 24×7 customer service from several companies like, even on national holidays. This will allow you to settle any grievances at your leisure.
- Network parking garages:
Network garages are a chain run by your insurance company where you can get repairs and other services for your vehicle if it is damaged in an accident.
Before using the services of an insurance provider, you should look for the number of network garages it has to broaden your scope of cashless services.
Few insurance companies offer doorstep pick-up and drop-off services to maintain its market reputation. This benefit is available if you use any network garages listed under several insurance companies.
- Simplified claim process:
Several car insurance online or offline offers a smartphone-enabled self-inspection process to help streamline the process. This dramatically simplifies the process of filing claims and saves you the hassle of having your vehicle inspected by an agent from your insurance company while filing claims.
With these few considerations in mind, purchasing a car insurance policy can assist you in obtaining the ideal coverage for your needs.
* Standard T&C Apply
** Currently, there are 2 tax regimes in India – new and old. To get the tax benefit you desire, choose the correct one after consulting an expert. You can opt for a regime change during the next financial year.
# Visit the official website of IRDAI for further details.
## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.