Car insurance reduces financial losses from car accidents, natural disasters, and other unforeseen events. However, coverage must be high-quality and affordable. While Indian drivers must have Third-Party Car Insurance, you also need Comprehensive auto insurance that covers vehicle damage. *

Shopping for new car insurance is easy, but it takes digging to find the best deal. If you’re starting in auto insurance, it’s important to take extra precautions while choosing the right policy for your ride. Here are some basics to keep in mind for those just starting in auto insurance:

• First, find insurance that works for you.

Keep in mind there are two distinct types of auto insurance: third-party liability and full coverage. The former is required by law in India, but the latter offers extra protections and conveniences. You should get third-party liability insurance if you want the bare minimum of protection in the event of an accident. Choose a Comprehensive policy, however, if you also care about protecting your vehicle. Make sure to use a car insurance premium calculator to determine your policy price. *

• IDV must be properly adjusted.

IDV is a standard vehicle insurance acronym that stands for Insured Declared Value. It estimates your car’s current market worth. IDV is a baseline for determining your car’s market value, not its trade-in value. Remember that third-party motor insurance does not require an IDV, and selecting the IDV range requires Comprehensive coverage. *

If your car is stolen or damaged beyond repair, it is considered a “total loss.” IDV assists in this case, where the insurance provider pays the IDV you set when buying the policy. IDV selection is critical. Lower limits minimise claim amounts and auto insurance prices. *

• Car insurance prices are reduced, but increasing the deductibles reduces claim payout

The policyholder must pay the deductible before the insurer pays out on a claim. The policyholder contributes this little sum in exchange for a portion of the policy’s benefits. Under the voluntary deductible, you can determine the amount you want to pay at the time of claim. It’s widely accepted that safe drivers can benefit from a larger deductible. However, increasing the deductible reduces the total amount of claims. *

• Purchases of add-ons should be limited to those that improve the product

Additional coverages, or add-ons, are other car insurance benefits available for purchase with a Comprehensive auto insurance policy. If you’ve recently purchased a car, you may be interested in purchasing optional coverages like Zero Depreciation Add-On, Return to Invoice Cover, Roadside Assistance Cover, Engine Protection Add-On, No Claim Bonus Cover, etc. Separate payments are required for each supplementary item. Your premiums will go up as a result of this change. You should pick only the extras that are necessary for your project. For instance, you may decide not to purchase NCB Cover if you believe the likelihood of filing a claim is low. *

• Maintain your NCB through prompt renewal

Even though  Auto insurance usually lasts a year, it can be extended. It must be renewed on time to avoid cancellation because expired insurance doesn’t cover you or the third party. When you go a year or more without filing a claim on your auto insurance, you are eligible for NCB. You need to renew the policy on time to keep this concession, which can be as high as 50% after five years with no claims. If you let your insurance lapse for more than 90 days without renewing it, you will lose this perk and likely pay more for coverage overall. *

These fundamentals of car insurance can help you get started. Ensure you’re familiar with the policy’s specifics, including any limitations, exclusions, and fine print.

* Standard T&C Apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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