How To Choose The Right Car Insurance Policy

By | January 4, 2017

How To Choose The Right Car Insurance Policy

Most car owners make one common mistake when they choose a Car Insurance provider. They skip the research. Many consider only one factor before selecting a policy – the cost of the premium. Here we’ll give you a step-by-step guide, which will help you make an informed choice.

These are seven simple steps you should follow when you decide which Car Insurance policy to zero in on.

Make a complete comparison of the features of the Insurance coverage

Compare all you short-listed Car Insurance policies and see if they all provide the same type of insurance coverage. Some key inclusions in the cover should be coverage for damage to your car, personal accident cover for the insured person and for injuries to third parties.

Additional Reading: Riots? Bandhs? Dude, What About My Car?

Review Additional Riders Offered As A Part Of The Insurance Policy

Consider all the important Insurance riders and choose those that you think would be suitable. We’ve listed some important Car Insurance riders for you.

  • Engine Coverage

This protects you from incurring costs due to any damage to your car’s engine.

  • Third Party Liability

Third Party Liability cover protects the owner of the vehicle against financial liabilities that may arise as a result of physical injury, death or damage to the vehicle of a third party.

  • Roadside Assistance

In the event you are stranded after a car accident or with a flat tyre, Roadside Assistance will give you the option to call your insurance provider and request them to send a mechanic.

Additional Reading: What To Do If Your Car Insurance Lapses

  • Zero Depreciation

If you choose to take Zero Depreciation cover with your Car Insurance policy, your Insurance provider will waive off depreciation on replaced vehicle parts. This means that you get a higher claim amount.

  • Personal Accident Cover

This cover financially protects you, as a vehicle owner, against unfortunate events that may cause physical harm like accidental death or permanent total disability in a road accident.

Additional Reading: All About Zero Depreciation Cover

Get Hands-On Reviews of Car Insurance Providers

Ask your family or friends about their experience with a particular Car Insurance provider. This will give you a good idea of how their customer service and claims process works, which in turn will help you make the right choice.

Additional Reading: What To Consider When Choosing A Car Insurance Policy

Compare Premium Quotes Online

You may get a really good deal online if you take some time to browse around a bit. When you compare Car Insurance policies online, here’s what you must do.

  • Compare policies from different insurers.
  • Make sure every comparison site calculates the Insurance premium on the same Insured Declared Value (IDV).
  • Check at least 3 Insurance comparison sites.

Additional Reading: Your Guide To A Car Insurance Premium Calculator

  • Negotiate With Your Existing Insurer

You might get an extra benefit for being a safe and responsible driver as you may not have made too many claims or frequent accident-related repairs.

  • Protect Your No Claim Bonus

Being a responsible driver has its perks. If you don’t make an Insurance claim for an entire year, your Car Insurance provider will reward you with a No Claim Bonus. This is a discount on your Insurance premium. You can also choose to opt for No Claim Bonus protection. This means you won’t lose your No Claim Bonus cover if you file a claim, provided the other party confirms that the accident was not your fault.

Additional Reading: All About No Claim Bonus In Motor Insurance

  • Check Claim Settlement Ratio

Before you finally choose a Car Insurance provider, the last factor you must take into consideration is the Insurance provider’s Claim Settlement Ratio. A Claim Settlement Ratio is the amount of time they take to wrap up a claim for their customers. If it’s good, go ahead and purchase your Car Insurance policy. You can check the Claim Settlement Ratio on the IRDAI website.

Additional Reading: What Is Claim-Settlement Ratio

It is always good to look beyond just the Car Insurance premium when selecting the perfect Car Insurance for your vehicle. Now you know what to look out for.

All information including news articles and blogs published on this website are strictly for general information purpose only. BankBazaar does not provide any warranty about the authenticity and accuracy of such information. BankBazaar will not be held responsible for any loss and/or damage that arises or is incurred by use of such information. Rates and offers as may be applicable at the time of applying for a product may vary from that mentioned above. Please visit for the latest rates/offers.
Category: Car Insurance

About Dheeraj Kapoor

BankBazaar is the world's first neutral online marketplace for instant customised rate quotes on Loans, Credit Cards, Insurance and Investment products. Shop for financial products just like you buy everything else now - online.

2 thoughts on “How To Choose The Right Car Insurance Policy

  1. Victoria Addington

    I’ve been looking for a suitable insurance policy for my car since I am planning to purchase soon. Thanks for your advice to consider all the important insurance riders covered by the insurance policy. However, as of this moment, I like the policy that protects me financially as a car owner in cases of accidents. Hopefully, I can find a provider that offers such.

    1. Team BankBazaar

      Hi Victoria,

      There are plenty of insurers that offer coverage for third-party liability arising out of damages caused to another person’s vehicle and even personal accident cover. As explained in the post, go through all the riders carefully and compare quotes across insurers before you zero in on one.

      Team BankBazaar


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