How to choose the right car insurance policy: Key tips

Choosing the right car insurance policy can be a confusing and painstakingly time-consuming task for many. Here’s a comprehensive guide about the thin
Car insurance
Choose and buy a car insurance policy wisely, as it could otherwise impact your financial balance.
Car insurance
Choose and buy a car insurance policy wisely, as it could otherwise impact your financial balance.

Personal vehicles are gradually and increasingly becoming a crucial mode of mobility in major cities, suburban areas as well as in rural regions of India. Since the Covid-19 pandemic, the need for personal vehicles has witnessed a rapid surge in demand. While buying a personal vehicle, consumers spend a lot of time analysing the advantages and disadvantages of different vehicles before making a decision. Nonetheless, not all people acquiring a new vehicle invest the same amount of effort in studying car insurance packages, even if it is a highly important element of the overall vehicle ownership experience, as the Indian government has made car insurance with third-party coverage mandatory for all vehicle owners

Many consumers have lack of knowledge about the fine details of how to choose auto insurance coverage., This is due to a lack of awareness or because of other reasons. Before you select a car insurance policy, you should do as much research as you would while buying the vehicle itself. A car insurance policy provides the vehicle owner with numerous benefits such as coverage against various eventualities. It safeguards the vehicle owner’s finances in unforeseen situations like the car being stolen and an accident.

Add your vehicle to our garage
Enter vehicle number
Please enter a valid vehicle number
Close error tooltip

Also Read : Will Bharat NCAP high-rated cars command lower insurance premiums?

The process of selecting car insurance can be painstakingly time-consuming and confusing at the same time. In order to choose the best car insurance policy, you may have to undertake extensive research to find the right plan for you.

Here are some key things to remember while buying a car insurance policy.

Compare various policies

When you plan to purchase a car insurance plan, you may face a wide range of choices available in the market. The availability of such a wide range of car insurance policies may puzzle you rather than make your selection process easy. However, you can always overcome this confusion simply by comparing the different car insurance options available in the market. Comparing multiple policies against each other will help you to understand the in-depth details of these plans, the coverage and non-coverage areas of each policy. This also helps in making an informed decision to purchase the best plan suitable for the consumer.

Look for flexible coverages

A car insurance provider company may not be able to offer a single plan that is suitable for all customers as the demand varies from one vehicle owner to another. Hence, don’t stick to one insurance provider and one plan. Instead. always opt for a plan that will provide flexible coverage. Purchase a policy to be covered against various events that may happen in future, such as damage to the vehicle or damage to a third-party vehicle. In a nutshell, you should select a policy that best caters to your needs.

No-claim bonus

Most car insurance provider companies offer their customers the benefit of a no-claim bonus every year if the consumer does not raise a claim in the preceding year. You can always consider this policy feature and select a car insurance plan that offers you the maximum amount of no-claim bonus for the year when you don’t raise any claims.

Customer assistance

While most of the car insurance policy processes are completed online, in case of any complicated issue, customer support becomes helpful. Hence, looking into the customer support provided by a car insurance provider company is highly crucial before buying an insurance plan. Some insurance companies offer 24×7 assistance to their policyholders. Consider this while buying a car insurance policy, as you don’t want to get stuck in paperwork.

Rider options

A major reason behind the time-consuming selection process for car insurance policies is that different insurance plans offer a variety of protection. Different car insurance plans can provide consumers coverage for different events, such as car theft, accidents, third-party damages etc. Some policies may not cover the costs incurred in all these situations at once. To get coverage for select events, the consumers are required to purchase optional rider coverages. Hence, the consumer should always select a plan that allows him or her to add riders depending on their requirements.

Claim settlement ratio

Each car insurance provider company receives numerous claim requests throughout the year. While many of these claims are settled, some are not due to various reasons. Also, the settlement level varies from one policyholder to another. While buying a car insurance policy, always consider the claim settlement ratio of an insurer before purchasing a plan from the company. Buying a policy from a company that has a high claim settlement ratio always enhances the chance of getting better coverage when required as well as increases the chance of getting the coverage approval as well.

Check renewability

While purchasing a car insurance policy, the consumer should always look at the renewability of the plan. He or she should opt for the plan that allows the consumer to renew the policy on a yearly basis in a hassle-free manner.

First Published Date: 30 Apr 2024, 14:47 PM IST

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy
Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.