Car Insurance Tips: Buying a new car is a major financial decision, and getting the right insurance is an equally important part of the process. Motor insurance is mandatory for vehicles driven on public roads in India under the Motor Vehicles Act.
However, choosing a policy should not be based only on the premium amount. The insurer’s reputation, coverage, deductibles, IDV and additional benefits can significantly affect your experience when you need to make a claim.
Here are some important things to check before purchasing car insurance.
1. Choose a Reliable Insurance Company
Start by researching well-established and reputed motor insurance providers.
Before selecting an insurer, check its claim settlement record, customer feedback, financial strength and quality of customer service. A company offering a low premium may not necessarily provide the best overall experience.
Shortlist insurers that perform well across these factors and then compare their policies before making your final choice.
2. Compare Policy Coverage Carefully
Don’t purchase the first insurance policy you come across. Obtain quotes from multiple insurers and compare what each policy actually offers.
Pay attention to:
- Premium amount
- Deductibles
- Policy duration
- Coverage and exclusions
- Add-on covers
- Personal accident cover
- No Claim Bonus (NCB)
- Roadside assistance
- Accessory protection
A policy with a slightly higher premium could provide substantially better protection. Reading the terms and conditions carefully can also help prevent unpleasant surprises during a claim.
3. Check the Insured Declared Value (IDV)
The Insured Declared Value (IDV) is another important factor when purchasing comprehensive car insurance.
IDV represents the maximum amount the insurer generally pays if the vehicle is stolen or declared a total loss, subject to the policy terms.
Make sure the IDV offered by the insurer is reasonable and broadly reflects the car’s current market value. Choosing an unnecessarily low IDV could mean receiving a lower payout in the event of a total loss.
Many buyers focus mainly on the premium and overlook the IDV, so it is worth checking this figure before purchasing the policy.
4. Understand What Is Not Covered
Knowing the exclusions is just as important as understanding the benefits.
Before paying for a policy, carefully review situations and expenses that the insurer will not cover. Also check the conditions attached to add-ons and other benefits.
Understanding these details beforehand can help you avoid confusion when filing a claim.
5. Renew Your Car Insurance on Time
Buying insurance is not the end of the process. You also need to renew the policy regularly to maintain continuous coverage.
Allowing a policy to expire can create unnecessary complications and may affect your accumulated benefits, depending on the circumstances.
Keep track of your renewal date and complete the required documentation and payment on time.
Final Word
Choosing the right car insurance policy requires more than simply looking for the cheapest premium. Compare insurers, examine coverage and exclusions, verify the IDV and understand the available add-ons before making a decision.
A little research at the time of purchase can help ensure that your car has suitable financial protection when you need it most.
Disclaimer: Insurance policies, coverage conditions and premiums vary between insurers. Always read the policy documents carefully and confirm the applicable terms with the insurance provider before purchasing.