Car Insurance Buying Guide 2023

Almost all car owners in India purchase automobile insurance as a matter of necessity. In general, people do not compare automobile insurance plans before making a purchase; instead, they focus their choice on affordable premiums. This frequently results in insufficient coverage.

When purchasing a vehicle, auto insurance should be considered equally. Therefore, every owner of a car should be knowledgeable about the different features of auto insurance before making a purchase decision.

If you're buying vehicle insurance for the first time, knowing the details will help you get enough coverage and earn greater benefits.

The following advice will greatly assist you in comparing insurance and selecting the best option.

What kind of car do you drive?

It is crucial to know that insurance providers are skilled at obtaining exact information about the model and brand of every car that exists. Sports vehicles and upscale sedans are more likely to be stolen and sold by parts. 

These powerful engines can be very expensive on their own, thus the indemnity coverage for these automobiles will be significantly greater, which will raise the price of auto insurance as a result.

Having third-party insurance is mandatory

All car owners are required to have third-party insurance in accordance with the Indian Motor Vehicles Act and the Indian Road Safety Act. Driving without current insurance is a crime that can result in a large fine. Therefore, be certain that your vehicle is always covered by insurance.

Typically, when buying a new car, the car dealer will only offer third-party insurance coverage. One of the most important things to understand about third-party auto insurance is that it is basic insurance and only covers potential losses to a third party's automobile or property.

It also encompasses physical harm, impairment, and demise. No matter who is driving—you, a member of your family, or someone you hired—a third-party insurance coverage will only pay claims for harm done to the third party.

However, you are not permitted to make a claim for coverage of the harm done to your car under the terms of the third-party insurance policy.

Look for comprehensive coverage

When you compare car insurance online, make sure the policy offers comprehensive coverage. A comprehensive automobile insurance policy offers more coverage than third-party insurance because it includes coverage for both personal injury and third-party liability.

Insurance policies that cover natural as well as man-made calamities such as fires, thefts, riots, rain and storms, etc. is another important benefit.

Comprehensive auto insurance may have a higher premium than third-party insurance, but if you think about the advantages it provides, the higher premium is well worth it.

Insured Declared Value

As a result of a theft or severe damage beyond repair, your insurance company will pay the insured stated value.

Normally, the IDV refers to the maximum amount that an insurer will pay you if an accident causes your car to be totaled. This is not the resale value of the car.

You might be presented with various IDVs by various insurance firms. In order to determine the IDV, you must first determine the car's current market value. When comparing car insurance policies online, make sure the IDV is as close as possible to the market value of the automobile.

Services offered

While the majority of individuals pick auto insurance providers who offer the cheapest premium, you must not make this mistake. If you want to choose the best auto insurance plan, you must consider both the reputation of the insurer and the quality of its services.

Your questions and service requests will be answered quickly and continuously by a reputable insurance provider.

It is one of the best ways to evaluate the quality of services provided by examining user reviews. Also, it is advisable to choose an insurance provider with a high claim settlement percentage.

No Claim Bonus

No Claim Bonus is the compensation insurance companies give to policyholders who do not make any claims during a given year. Your reward for renewing your auto insurance usually comes in the form of a discount. 

If the insurance provider has an NCB programme, you must confirm it when comparing auto insurance. Additionally, you need to confirm that the insurance provider includes the NCB in their price.

All insurance companies receive the same NCB discount since IRDAI controls it. As long as you file claims, the NCB will increase every year. When you go five years without making a claim, the NCB will reduce your premium by 50%.

Additional covers

The additional protection supplied by the insurance policy over and above the basic coverage is known as add-on covers or riders. To meet the diverse demands of the population, the majority of insurance firms in India provide a range of supplemental coverages. You can customize your policy and add any additional coverage you choose based on your unique needs.

Roadside assistance, return to invoice coverage, and zero-depreciation coverage is some of the most popular extra protection options. When comparing car insurance policies, seek a company that offers the supplemental coverage you require because not all insurance providers may provide all the coverage you require.

Thanks to the internet, it is now easier than ever to compare auto insurance quotes. With the touch of a mouse, you may request quotes from as many companies as you'd like and then select the best insurance plan and provider for your unique circumstances.