Guide to Choose the Right Car Insurance Policy in India

In today’s day and age, cars have become more of a necessity. Owning a car helps navigate better and save up on the otherwise travel expenses and inconvenience. As per the sources at the Insurance Information Bureau (IIB), and as mentioned in an article in Outlook India, apparently only 6.5 to 7 crore vehicles have insurance cover against approximately 18 crore registered vehicles on Indian roads. This is majorly due to a lack of awareness and guidance when it comes to the process of purchasing car insurance in India. 

Even though mandatory, car insurance is a particularly valuable tool that strives to protect your hard-earned four-wheelers against mitigating damages and reducing costs in the event of an accident.  With an array of car insurance riders to choose from, it is crucial to understand the underlying importance of certain critical aspects while choosing the ideal car insurance for you. 

But before driving into the nitty-gritty, here is a basic nugget of information. Car insurances in India are of two types:

Third-party Liability Insurance Cover – One that offers confined security. This kind of car insurance safeguards you solely against the costs contracted from the loss caused by your vehicle to another vehicle, property or person.

Comprehensive Insurance Cover- One that offers an added layer of protection as compared to third-party liability insurance. This covers everything right from the event of the death of the driver or passengers and loss caused by the vehicle to a third-party car, property or person.

Here’s Why Purchasing a Car Insurance Policy Is Crucial

India became the fourth largest auto market in 2019 displacing Germany with about 3.99 million units sold in the passenger and commercial vehicles categories and is expected to displace Japan as the third-largest auto market by 2021, according to a recent IBEF report. 

But why is this number significantly in the context of this topic? Let us answer that in one word, Uncertainty.

A car insurance policy in India is a safety net that is devised to protect us from the government’s legal requirements and to shield oneself, the vehicle plus the third-party vehicle. These may be involved if there arise undesired events or circumstances during the usual course of a car travel journey. Let’s dive deeper into the ancillary benefits of owning a car insurance rider:

Car insurance helps you avoid penalties and keeps you in line with government vehicle regulations.

Accidents and mishaps may drive tremendous stress on your financial resources. It is during events like these, that car insurances policies help you avoid unanticipated financial stress.

In case of a third party involvement during an accident, features like collision cover, body cover and liability cover help you recover losses. Timely compensation that fairs both parties plus a convenient claim process is one of the many perks accompanied by insurance companies and services.

You can add-on medical coverage to your car insurance plan to help prepare for unforeseen health and medical requirements during events of distress. This is usually an additional check box you tick while purchasing a car insurance rider and is substantially advantageous for the purchaser.

Money may not buy you happiness. But it sure can bring you some peace of mind. A virtual safety net for your vehicle, self, and the onlooker helps you drive at ease knowing there’s always a backup plan while mitigating a vehicle crisis. 

How Does It Work

Think of car insurance plans as a transaction between the insurance company and the car owner. For the premium amount that the car owner pays, the insurance company provides a safety net in the form of compensation to cover losses incurred during mishaps.  While having car insurance is mandatory in India regardless of it being a commercial or a personal vehicle, many consumers purchase the same without avid understanding and regret the terms of the contract during claim time. 

Car insurance companies provide add-ons to enhance the overall experience. Suppose you are not convinced with the specific coverage that a particular plan provides. In that case, you can modify the same by adding features and customising your car insurance plan as per your need, requirement and anticipation. These add-ons are usually priced at a nominal premium.

The premium cost associated with car insurance rises as per the plan coverage and benefits it provides. While users are required to avail a mandatory car insurance plan in India as per government regulations, having extensive coverage is always better given the number of road mishaps every year in the country. A car insurance cover is a classic example of controlling what will remain in your hands.

Concerning premiums and plan prices, here are a few things to note:

  • Anti-theft Safety Concession

          Starting with a quick price hack, if your vehicle is provided with an ARAI (Automotive                           Research Association of India) accredited anti-theft device, you get a   supplementary reduction of 2.5% on your car insurance premium. While this can help you drive down costs, it would only be accepted upon the successful submission of the approval card provided by ARAI.        

  • Car Model/Variant 

            This is a no-brainer. Cars belonging to the luxury/high-end segment have higher premiums                    as compared to other models, variants and categories.

  • No Claim Bonus (NCB) 

           Perks of being a safe driver? You deserve lower premiums as a reward. That’s right! A No                   Claim Bonus benefits you by drawing down the premium by 10% to 50%, depending on the                number of years you did not register for a claim. The added perk of maintaining good road                etiquettes and adding up your NCB years is that this feature is transferable across different                plans provided by different companies. This helps you significantly reduce your premium                    expenses per year. 

  • Car Drive Location

           Metropolitan cities like Mumbai, Bangalore, Chennai etc. place high premium pricing on their            insurance plans as compared to vehicles driven in semi-urban and rural areas. City traffic,                  road etiquettes and accident rates tend to be higher due to which the premium cost rises.

  •  Car Fuel Type 

            Based on car fuel type, the premiums might differ. For example, a petrol-driven vehicle incites              a lower premium in comparison to a CNG/Diesel car.

  Key Elements to Consider

 A lot of thought goes into the process of insurance purchase, we understand. However,                    Insurance companies themselves consider various attributes before designating a car                        insurance plan to you.Therefore, it is crucial for you too to consider important things before              selecting a suitable policy.

Here are some details you must keep in mind while buying a car insurance policy in India :

  • Pick between a third-party cover, collision cover and a comprehensive policy only after analysing your needs thoroughly. 
  • You must recognise that a comprehensive car policy is a full package of features like liability cover and accident cover. It can also be improved as per your requirements by selecting add-ons like an invoice cover,  a consumable cover, engine cover, etc.
  • Make it a point to ask for a no claim bonus option from the insurer if you do not make any insurance claims in the policy purchase’s preceding year.

Take into consideration all these points, as mentioned above, and you will be onto the right path of making the correct choice while picking out a car insurance plan that best suits your needs. Additionally, by reading the key details and understanding the terms between the lines, you will avoid filing for a baseless claim, renew/port your existing car insurance rider and safeguard your four-wheeler in the best possible way.

It is crucial to be well informed before picking the ideal car insurance package. Cover 360 can help you navigate this decision with a host of relevant information that it provides on its website.

Cover 360, is a complete car insurance services platform that offers all the information, comparison facility and easy buying options for all the available car insurance policies in India.

The trustworthy one-stop solution makes car insurance policy comparison more effortless than ever. It helps place the jigsaw’s firing parts to complement your pricing needs, car coverage, and relevant add-on requirement holistically.

Here is how Cover 360 accommodates you while purchasing your car insurance rider:

  • The platform provides users with the ease of customising their insurance plans as per requirement.
  • With stellar insurance comparison algorithms, you can compare car insurance online across a list of insurance providers making it one of the fastest and most trustworthy platforms to safeguard your vehicles.
  • Not only does Cover 360 provide expert advice on various car insurance products and insurance providers in India, but they also help you save substantially on your car insurance policy.
  • A hassle-free insurance purchase experience, backed by quick and reliable payment methods to help you save effort and time is what Cover 360 strives to deliver.
  • We help you avail the car insurance policy in your mailbox without having to run here and there.
  • Backed by simple and convenient processes, we also provide document pick up and delivery right to your doorstep.
  • We provide an easy to understand interface while picking car insurance that provides you with all the information you require to help you steer towards the right decision.
  • Your car insurance rider purchase on Cover 360, comes with the added perk of ease of claim redressals, so you can sit back and relax and enjoy a hassle-free refund experience. Cover 360 also offers live policy tracking to keep track of activities on your car insurance policy.

We understand how simple questions can be completely baffling while investing in a car insurance plan. With an avid customer support team in place, Cover 360 ensures speedy redressal of all your doubts. For further information, visit Cover 360 and get riding with your ideal car insurance plan!

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