What To Consider When Choosing A Car Insurance Policy

By | December 19, 2016


Did you know that it’s mandatory for cars in India to be insured? Whether you like it or not, if you have a car, you’re going to have to get it insured. But before you get an insurance policy, you should a few essential factors.  These will stand you in good stead when choosing your Car Insurance policy.

Cashless Settlement of Claim

The option to make cashless claims on your Car Insurance is an important factor to consider when choosing a Car Insurance policy. A cashless Car Insurance allows you to make an insurance claim for repairs on your vehicle without handling cash. Rather convenient, wouldn’t you say?

Car Insurers will have partnered with various garages to offer cashless claims to their customers. When selecting your Car Insurance, you must check on how many Network Garages are tied up with the provider.

Correct Value of Coverage

You must remember to clarify the exact IDV of the vehicle under your Car Insurance policy. Insured Declared Value is the present market value of your vehicle. Let’s say your car is totally damaged in an accident, the IDV is the maximum sum the insurance company will pay you as compensation.

Additional Reading: How is Car Insurance Insured’s Declared Value (IDV) Calculated?

Get additional benefits that will suit you

When choosing your Car Insurance policy, you must select add-on benefits on your policy that will be suitable to your individual needs. Don’t forget to carefully review the list of add-on features available with your insurance policy. You can request for certain add-ons that you feel would come in handy.

No Claim Bonus, deductibles and discounts

You should pay close attention to the details regarding No Claim Bonus and deductibles as well as any discounts that may be applicable to your insurance policy. Keeping a close eye on your claims will help you take maximum advantage of your No Claim Bonus. It may help to think twice before making seemingly unnecessary claims on your insurance policy.

Additional Reading: When NOT To Claim That Car Insurance

Customer Service and claims service turn around time

A very important question you must ask your prospective insurance provider is how long they can process a claim request in. The turnaround time for claim services is a crucial factor in deciding convenience offered by an insurance company.

What is the claims settlement ratio of the insurer?

This is another big factor to consider when finalising on a Car Insurance provider. How many claims are filed with the insurer against the number of claims successfully settled? This ties in with the claims service turnaround time. The higher the claims settlement ratio, the better the reputation of the Car Insurance provider.

Type of policy

What type of policy is your insurer offering you? Is it only a Third Party cover or is it a comprehensive policy, and does it include sufficient add-on benefits? Don’t accept just any other policy. A Car Insurance policy must ideally be beneficial to you when you make claims on it in the event of an unfortunate incident. You should carefully review your options to bag a comprehensive policy that gives you the benefits that you will need.

Additional Reading: Third Party Car Insurance

Reviews of the respective insurer

Read those reviews posted on the insurer’s website or any other reputable reviews portal. Hearing about the services offered by the insurance provider from other customers is a good way to judge their quality before you make a choice.

Must Read: Zero Depreciation Car Insurance

So now you know exactly what to look out for when you have to decide on a Car Insurance policy for your vehicle. Get an insurance cover that is easy on your pocket, yet gives you your money’s worth.

Additional Reading: Car Insurance Terms You Must Know

Need more help?

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Category: Car Insurance 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.

8 thoughts on “What To Consider When Choosing A Car Insurance Policy

  1. Burt Silver

    I didn’t realize that you could settle a claim without having to exchange cash. It would be really convenient to have the insurance company work with the garage so I didn’t have to worry about that at all. My wife and I have been looking for a new auto insurance policy since we had our baby, and this is something I will definitely want included in my new policy.

    1. Team BankBazaar

      Hi Burt, Talk to your insurance firm and read the terms and conditions before signing up. Click here to check out car insurance policies.

  2. John

    I like how the article states that an insurance policy needs to be designed so it benefits you. Don’t settle for a policy that isn’t going to benefit you when you need it to. I also think it’s a good idea how the article suggest to evaluate the speed of claim service when a claim request comes in. These tips will help you get a policy that suits your specific needs.

    1. Team BankBazaar

      Hi John, We’re glad you found our article informative. Please keep reading our blog for more. Cheers, Team BankBazaar

  3. Victoria Addington

    Thanks for the things to consider when choosing a car insurance policy. I’m planning to buy my second car now that I’m giving my first one to my sister who’s going to college. With that said, I shall then follow your advice to select add-on benefits to my policy coverage. Perhaps, I shall then review the list of add-on features and make sure to choose the one that is suitable for my needs.

    1. Team BankBazaar

      Hi Victoria,

      That’s a great idea! We hope you will keep reading our blog for more insights into the world of finance.

      Team BankBazaar

  4. Kristofer Van Wagner

    Thank you for reminding us it is important to ensure that our auto insurance has the right value. The other day my brother mentioned he would like to have auto insurance. I will remind him to ensure the value is at par.

    1. Team BankBazaar

      Hi Kristofer,

      That’s right. We’re glad you found our article useful! Keep reading our blog for more insights into the world of finance.

      Team BankBazaar


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