A Complete Guide to choose best insurance policy for car
Before we choose best insurance policy for car , we need to know some fundamentals , so that we get maximum insurance and security from our policy .
Insurance companies in India offer a plethora of car insurance plans that cater to the specific needs of the buyers, but choosing the right policy can be challenging. In India, insurance companies offer different plans with different features, and these plans come at various price points. So, it is important that you do your research well before picking the right insurance policy to best suit your needs. Here are a few tips that should help you:
1.Know your needs
Before you start looking for the best car insurance and the best insurance company, assess your needs and know the type of policy you want. In India, there are two types of car insurance policies – Third-party Insurance and Comprehensive Insurance.
Third-party insurance is a mandatory requirement by law. It covers only damages to the third-party. Under third-party insurance, you do not get compensation for the damages to your car.
So, if you are looking for a basic plan with an affordable premium, a third-party liability plan would be an ideal choice. But, if you drive a luxury car, it is better to purchase a comprehensive cover, as it will help reduce financial liabilities in the event of an accident.
2. Compare the plans (best insurance policy for car) :
Once you are sure about the type of car insurance policy you need, it is a good practice to compare the plans from different insurance companies before making the purchase decision. You must compare the plans in terms of the sum insured, inclusions and exclusion of the policy, type of add-ons offered, claim process, deductibles, etc. Choose a plan that is cost-effective for the premium you pay.
3. Ask about the add-ons :
Add-ons or Riders are additional coverage options that you can purchase by paying an additional premium. The riders widen the scope of the policy and provide coverage against specific damages that are not included in your usual plan. You must ask the insurer about the add-ons offered and choose the one that best suits your needs. However, you must know that add-ons are available only to comprehensive insurance policyholders.
4. Check the claim process (in your best insurance policy for car ):
One of the primary objectives of purchasing a car insurance policy is to get immediate financial assistance in the event of an accident. So, it is paramount that you choose an insurance that has an easy and quick claim process. The last thing you would want during an emergency is going through a complicated procedure to get compensation for the losses .
5. Know about the claim settlement ratio of the insurer :
Not many car insurance buyers understand the importance of claim settlement ratio (CSR). You must check the claim settlement ratio before finalising the insurer. The CSR indicates the number of claims the insurer has successfully settled against the number of claim applications they received in one year. It is better to purchase a policy from a company that has high CSR, as it would mean that you have better chances o ..
6. Never provide any wrong information (while choosing best insurance policy for car ):
A lot of first-time car insurance buyers tend to provide incorrect information about their age and driving history to reduce the premium amount. But such practices can prove to be a costly mistake at the time of filing a claim. If the insurer finds the information is misleading, your insurance will be cancelled. So, it advisable to be honest and provide accurate details in the application form (while you select best insurance policy for car ).
7. Be aware of the policy terms and conditions
Last but not the least, before you sign the policy documents, you must take your time to read the terms and conditions carefully and check if the terms are favourable and meet your needs. This is a critical step to avoid any legal hassles at the time filing a claim. A best insurance policy for car , not only make relaxed but it also make you responsible driver .
Benefits of Buying Car Insurance(Best Insurance Policy for Car )?
A best insurance policy for car offers a host of benefits to its policyholders. The key benefits are as follows –
- Helps You Stay Legally Compliant car insurance helps you stay legally compliant as according to Indian Motor Tariff, every car owner is mandatorily required to have at least a third-party car insurance policy. The absence of which is punishable with a fine of Rs. 2,000 and/or imprisonment of up to 3 months.
- Protection Against Third-Party LiabilitiesA car insurance policy helps you mitigate third-party liabilities such as bodily injuries, temporary/permanent disability, death as well as property damage. While, the compensation of third-party property damage is limited to Rs. 7.5 Lakh, there is no compensation cap in case third party bodily injuries, disability or death.
- Protection Against Own-DamagesA car insurance policy helps you keep yourself financially secured against the own-damage expenses of your car. Damages incurred in road accidents, natural calamities, man-made disasters, fire, explosion, vandalism, etc are covered under standalone own-damage as well as comprehensive car insurance plans.
- Coverage Against Theft car insurance policy also provides coverage in case of theft of your car. In case your car gets stolen, your insurance company provides you with your car’s Insured Declared Value (IDV) which corresponds to the market price of your car.
- Personal Accident Cover With a car insurance policy, you can also get a personal accident cover of up to Rs. 15 Lakh which offers a coverage in case of death, bodily injuries as well as disability of the policyholder in a car accident.
Please see the list of best insurance policy for car providing companies (one should consider while choosing best insurance policy for car ):
| Rank | Companies | Network Garages | Claim Settlement Ratio |
| 1 | Bajaj Allianz General Insurance | 4,000+ | 88.83% |
| 2 | Bharti Axa General Insurance | 5,200+ | 87.99% |
| 3 | Hdfc Ergo General Insurance | 6,800+ | 91.23% |
| 4 | Icici Lombard General Insurance | 8,800+ | 87.71% |
| 5 | Iffco Tokio General Insurance | 4300+ | 95.30% |
| 6 | Kotak General Insurance | 1,300+ | 82.81% |
| 7 | National General Insurance | 3,100+ | 85.71% |
| 8 | New India General Insurance | 3,000+ | 89.60% |
| 9 | Reliance General Insurance | 6,200+ | 84.26% |
| 10 | Sbi General Insurance | 16000+ | 89.51% in FY20 |
| 11 | Tata Aig General Insurance | 5,000+ | 90.49% |
| 12 | United India General Insurance | 3,100+ | 82.93% |
| 13 | Universal Sompo General Insurance | 3,500+ | 90.78% |
Final word (you need to keep in your mind while choosing best insurance policy for car )
Buying a car insurance policy is not as hard as it may seem. Following the tips mentioned above can immensely help you .
Benefits of Car Insurance Renewal Online (Best Insurance Policy for car )
Buying car insurance renewal online comes with a range of benefits which are as follow:
1. Convenience – The online car insurance purchase and renewal process are much more convenient than a traditional offline facility. Earlier people had to visit the insurance company’s branch or meet their insurance agents, but with the online car insurance feature, they can now compare and select a policy at the comfort of their home.
2. Minimal Paperwork – When you buy a car insurance plan online, it involves minimal or even zero paperwork with a digital proposal form, the requirement of scanned documents copy, etc. Also, a soft copy of the policy document is sent to the registered email ID after its purchase. In simple terms, an online car insurance purchase helps you avoid the tedious process of documentation.
3. Affordable Process – To purchase a car insurance plan online is economical when compared to buy a policy offline. The overall operational cost goes down when car insurance is sold online as it eliminates the insurance agent and other mediators from the process that also reduces their commission expense. Hence, insurers can offer you car insurance plans at reduced rates.
4. Easy to Check Credibility – It becomes much easier to check any insurance company’s credibility online in comparison to offline. You can easily find the Incurred Claim Ratio, Claim Settlement Ratio, claim settlement process, and reviews to know the actual working quality of an insurance company. Getting all these details offline can be tedious and time-consuming. This feature will make your best insurance policy for car , more reliable .
5. Make the Process Faster – The car insurance renewal online or buying process is faster any day than the offline process. It takes a few minutes to buy a car policy online by just entering basic details about you and your car. While, in the offline process, you have to meet an insurance agent or visit the insurer’s branch and fill lengthy forms. Hence, online car insurance makes the processes faster.
Why Should You Buy A Comprehensive Car Insurance Policy? (Best Insurance Policy for Car ) :
Every car owner should purchase a comprehensive four-wheeler insurance policy due to several reasons. Here are its top benefits:
1. Third-Party Liabilities – Comprehensive car insurance provides you coverage for third party liability, which will help you if your car gets involved in an accident that leads to damages sustained by the third party. Also, it gives you legal compliance with the basic cover in hand while driving a car.
2. Own Damage Cover – Apart from the third party liability, comprehensive car insurance also gives coverage for damages or losses incurred by your car due to an accident, theft, fire, burglary, man-made disaster or natural calamities. Also, it covers damage or loss to cars while in transit by rail, air, and so on.
3. Personal Accident Cover – Personal accident cover is also offered with comprehensive car insurance plans that give protection against permanent total disability as well as death due to an accident. This cover can be extended for other passengers based on your car’s seating capacity for a specified amount.
4. No Claim Bonus – One of the biggest benefits comprehensive car insurance provides is the No Claim Bonus (NCB) feature. Under this benefit, a policyholder gets a discount on the next year’s premium for not making any claim in a policy year. With every claim-free year, discounts accumulate making the car insurance more affordable.
5. Cashless Claims – The cashless car insurance claim is a significant aspect of every policy. Insurance company’s with a large network of garages across the nation ensure active cashless services in all these locations. This facility makes it convenient for policyholders to avail the repair services without paying anything.
All above points , one should consider while choosing best insurance policy for car .
Different Car Insurance Policy Companies
See different plans to insure your car
Let’s see some basic terminology , you should know while choosing best insurance policy for your car .
Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss.
An entity which provides insurance is known as an insurer, an insurance company, an insurance carrier or an underwriter. A person or entity who buys insurance is known as a policyholder, while a person or entity covered under the policy is called an insured. Policyholder and insured are often used as but are not necessarily synonyms, as coverage can sometimes extend to additional insureds who did not buy the insurance.
The insurance transaction involves the policyholder assuming a guaranteed, known, and relatively small loss in the form of payment to the insurer in exchange for the insurer’s promise to compensate the insured in the event of a covered loss. The loss may or may not be financial, but it must be reducible to financial terms, and usually involves something in which the insured has an insurable interest established by ownership, possession, or pre-existing relationship.
The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insurer will compensate the insured, or their designated beneficiary or assignee. The amount of money charged by the insurer to the policyholder for the coverage set forth in the insurance policy is called the premium.
If the insured experiences a loss which is potentially covered by the insurance policy, the insured submits a claim to the insurer for processing by a claims adjuster. A mandatory out-of-pocket expense required by an insurance policy before an insurer will pay a claim is called a deductible (or if required by a health insurance policy, a copayment). The insurer may hedge its own risk by taking out reinsurance, whereby another insurance company agrees to carry some of the risks, especially if the primary insurer deems the risk too large for it to carry.
