Beginner’s Guide to Buying Car Insurance

Understanding these basics helps you compare the available options and choose coverage that matches your car’s requirements. It also makes the car insurance buying process more convenient. Continue reading to learn more about car insurance as a beginner.

Why does Buying Car Insurance Even Matter?

Car insurance offers financial protection against costs arising from theft, accidents, natural disasters or other risks. It also provides third-party liability coverage, which is mandatory under Indian law for vehicles driving on Indian roads.

Under comprehensive coverage, a car insurance policy offers wider protection by combining third-party liability coverage with the damage to the insured car.

5 Tips to Keep in Mind While Buying Car Insurance as a First-Time Buyer

Buying car insurance for the first time can be confusing. Understanding the policy features can help you make decisions more easily. Here are the 5 tips to keep in mind while buying car insurance:

Scope of Coverage of Insurance Policy

First and foremost, review the policy coverage. A comprehensive car insurance policy includes damage caused to the insured car from any specific event and also third-party liability cover. Check the inclusions, exclusions and terms to get a clear understanding of the scope of coverage.

Difference between Premium and Insured Declared Value (IDV)

Premium and Insured Declared Value (IDV) both serve different purposes. Premiums are paid to keep the insurance policy active. IDV stands for the current market value of the car, taking into account the applicable car depreciation.

In general, it signifies the maximum amount you can claim in the event of a total loss or theft (according to the terms of the policy). While choosing a suitable coverage, compare both options.

Understand No Claim Bonus (NCB)

The No Claim Bonus (NCB) is a discount offered on own damage premiums for every claim-free policy period, depending on the terms and conditions. It can help lower the premium during policy renewal. Review insurer rules on NCB and understand how filing a claim can affect the accumulated discount.

Select Add-ons (Optional Covers)

Add-ons are included to extend the standard policy coverage based on your specific requirements. Options may include zero depreciation cover, roadside assistance plus engine protection cover, depending on the insurer. Go through each add-on carefully and choose only those that offer value for your car and its usage.

Do Not Forget About Voluntary Deductibles

A voluntary deductible is the amount the policyholder agrees to pay before the insurer pays the remaining amount toward a claim. A higher deductible can lower the policy premium, but it might raise the policyholder’s out-of-pocket cost during a claim. Choose an affordable amount in the event of a claim.

Buy Car Insurance from IndusInd General Insurance

Car insurance at IndusInd General Insurance comes with different options to suit various driving requirements. Its wide-ranging plans cover own damage as well as third-party cover and include several add-ons for flexibility.

IndusInd General Insurance also offers around 11,000+ cashless garages and an online platform for policy purchase and renewal from its website and app. Policyholders can review all available covers and add-ons before selecting the right plan.

Note to the Reader: This article is part of HT Auto promotional consumer connect initiative and is independently created by the brand. HT Auto assumes no editorial responsibility for the content.

Want to get your story featured as above?click here!