Car Insurance

• Cover Type

Decide the type of coverage you want. Narrow down your options and choose the right insurer and policy. For instance, if you want comprehensive coverage, go with an insurer known to offer more value at a nominal premium.

• Inclusions and Exclusions

While there is a standard set of inclusions and exclusions in a car insurance policy, they can vary across insurers. Ideally, you should ensure that the policy covers costs that you have a greater possibility of incurring. Look for a policy that offers more inclusions to widen the scope of your cover. 

• Premium Amount

Choose the most cost-effective policy offering the coverage you want. First finalise your policy’s must-haves and then compare the car insurance quotes for options you have shortlisted. 

• Insured Declared Value (IDV)

This is the amount that the insurer will provide in case your car is stolen or cannot be repaired. It determines the market value of your car and affects your premium as well as coverage. Ensure that you compute it correctly by using an IDV calculator. 

• Add-Ons

These options help boost the coverage of your policy, but not all insurers offer the same options at the same price. Compare these across companies and select a provider who offers the add-on you need at an affordable price. 

 

For instance, if you want NCB protection, choosing an issuer not offering it or offering it at a higher cost is not beneficial. 

• Network Garages

Most insurers have tie-ups with certain garages across India to offer the cashless claim facility. Choosing an insurer with a smaller network may not be ideal as you may not get the assistance you need. 

 

Check the insurance provider’s network list and ensure that it covers the areas that you visit or are likely to visit. You can find these details online categorised by state and city. 

• Claim Settlement Ratio

This ratio is calculated based on the number of claims that the insurer has passed against the number of claims made. For instance, if the insurer passes 98 claims out of 100, the ratio will be 98%. 

 

Choose an insurer with a higher settlement ratio to ensure that your claim is likely to be approved, if and when you file it. 

• Claim Process

If the process to file a claim is not easy and seamless, it will simply add to your stress. Additionally, there are certain terms and conditions that you need to follow to ensure you can file a claim. 

 

Since all this varies across insurers, pick the one known for hassle-free processes and customer-friendly terms. 

• Customer Service

Read the reviews of insurers you have zeroed in on to see how the experience of other customers has been. For the most convenient experience, pick the provider who is known to offer:

1. Various digital and online modes of getting in touch 

2. Customer-first policies

• NCB Protection

Insurance providers offer this bonus when you do not file a claim during the policy period. However, if you do file a claim, you are ineligible for this bonus. NCB can help lower your premium amount, hence its always recommended to get this protection.

 

Your NCB add-on will remain intact during the car insurance renewal process even if you file a claim during the policy year. This is what makes it so popular. 

• Roadside Assistance Cover

Although insurers offer a wide network of garages, they may not be accessible in remote locations. During such instances, you can rely on this add-on cover. Under it, the insurance provider will offer 24X7 service to assist you during a breakdown or other emergencies. 

 

This may include a team to refuel your car, tow it, repair a flat tyre, or even arrange for cab services. These services will vary depending on the insurer and your chosen policy.

• Zero Depreciation Cover

Your car is an asset, and its value will depreciate over time due to regular wear and tear. This can result in out-of-pocket expenses as insurance providers do not cover depreciation costs. However, with this add-on cover, you can forego such expenses. 

 

Remember, there will be certain terms and conditions that this cover comes with, such as it will be applicable only for the first two claims. Go through these conditions carefully before you add the cover to your policy.

• Engine Protector Cover

A regular car insurance policy does not cover the cost incurred due to the damage to your engine. Since such costs can be high, paying for them from your pocket can be a strain. By getting this add-on, you can extend your policy’s cover to your engine as well.

• Daily Allowance

In some cases, your car may have to stay in the garage for a longer period. During this period, you may have to look for other modes of transport. By getting this add-on cover, you can pay for alternate transportation through your insurance. 

 

Generally, insurers offer daily allowance up to two weeks. However, it varies depending on the company and the policy you choose.

• Lock and Key Replacement Cover

If you lose the key to your car or if the lock needs repair, the cost is not covered by standard car insurance. With the help of this add-on, you can cover these costs through your policy.

• Tyre Cover

As the name suggests, this add-on offers coverage for the cost of your car’s tyres, which makes replacing tyres and tubes more affordable. Generally, it is applicable in case of burst tyres, punctures, cuts, or bulges. This will vary across insurers and plans, so read the terms before you add it to your policy. 

• Return to Invoice

With this add-on cover, you can protect your car to its full invoice value. The insurer will pay the full cost of your car in the event of loss or theft. However, this will also have terms and conditions that you must go through before opting for it.

• Personal Accident Cover

This is a mandatory cover that you must have along with a third-party car insurance policy. With this, you can get compensation in case of injuries, disability, or death resulting from an accident. 

 

This is offered to the owner-driver of the insured vehicle, who owns the vehicle and has a valid driving licence. 

• Personal Baggage Cover

If you don’t want to end up with lost or damaged personal belongings, this add-on cover can help you recover the cost via insurance. However, remember that different insurance providers will cover different types of belongings. 

 

For instance, your laptop, clothes, CDs, or audio tapes may be covered, but your jewellery, cards, or money may not be. Read through the terms before you add it to your car insurance policy.

• Passenger Cover

This add-on cover extends coverage to the passenger of the car. Like the Personal Accident cover, it offers compensation for injuries, disabilities, or death due to an accident. However, this is not a mandatory cover. 

 

Although the above add-on covers are common, their availability will depend on the insurance provider and policy you choose. You may also find other covers that may not be listed above. Review your options carefully to add only the ones you need.

 

• Age of the Car

The coverage you get depends on the IDV, which depends on how old your car is. Generally, newer cars have a lower IDV. Once your car starts to depreciate, the IDV decreases, which results in a lower premium. Thus, a new car will have a higher premium compared to an older one.

• IDV

Insured Declared Value represents the market value of your car, and significantly impacts the premium amount. A lower IDV means the sum insured is lower, resulting in a low premium. On the other hand, a high IDV can result in a higher premium amount due to a higher sum insured.

 

Insurers calculate IDVs using their own criteria. If you are unhappy with the IDV of your current insurer, you can switch plans when the time comes to renew the policy. The process of online car insurance renewal is easy, and you can find a suitable policy on Bajaj Markets during this time. 

• Type of Coverage

Car insurance offers three types of coverage options and since their scope is different, the premiums vary too. Generally, comprehensive covers are more expensive than the others because they offer a broader cover.

• Engine Capacity

Your car’s engine has a direct impact on the premium amount you pay. If the engine's cubic capacity is high, the premium will likely be high and if it is low, the premium will be lower. 

 

This is primarily because the engine capacity also affects the value of the car. A higher engine capacity can imply that it is an expensive car and vice versa.

• Claim History

If you have made multiple claims during the policy year, the insurer will likely charge a higher premium during the car insurance renewal process. This is because you pose a higher risk, which the insurance provider offsets with a higher premium.

 

On the other hand, if you have not filed any claim, the insurer will likely offer a No Claim Bonus. The more the number of consecutive claim-free years you have, the higher the discount you get. This can lead to a very affordable premium.

• Add-Ons

These help you secure extra coverage and based on their features, add-ons come at different rates from different providers. Be careful about which ones you choose as costly add-on covers will result in a more expensive car insurance policy.

• Deductibles

This refers to the part of the claim amount that you will have to pay. If you choose a higher deductible, the premium amount will be low because the insurer’s liability is low. However, a higher deductible also means that you will have to pay a higher amount at the time of claim. 

 

For instance, if the deductible is ₹3,000 and the claim is for ₹5,000, the insurer will only pay ₹2,000 and you will pay the remaining amount. If the claim is for ₹2,000 and the deductible is ₹3,000, the insurer will not pay anything. Given these calculations, choose your deductible carefully, keeping your finances in view. 

• Location

Your geographical location affects the possibility of damage to your car, which affects the insurer’s liability, thereby influencing the premium you will pay. If you live or park in an area that is prone to accidents, natural calamities, vandalism, or theft, the premium will be higher. 

• Anti-Theft Devices

If you have installed an Automotive Research Association of India (ARAI) authorised anti-theft device, the premium may be lower. With these devices, the possibility of theft decreases, which lowers the insurer’s liability.

• Modifications

Some modifications to your car affect its risk profile and, therefore, can affect the premium you will have to pay. If you do not inform the insurer about these modifications, it can lead to issues at the time of making a claim. In some cases, your policy may also become void. 

 

A few crucial modifications that you should disclose to your insurer are to do with suspension, engine, wheel, safety, body, and light. While disclosing these changes can increase your premium now, it can help you save more in the long run by ensuring continued coverage.

• Keep All Documents Ready

Insurers will ask you to submit several documents to support your claim. This can include the FIR, policy documents, proof of damage, and more. 

 

If you delay or fail to submit any of these documents, the insurer can reject your claim. Ensure you keep all the paperwork on hand for the best chance of approval. 

• Renew Your Policy on Time

If you do not complete the car insurance renewal process, your policy will lapse. When this happens, the insurer will no longer be liable to cover any costs. 

 

As such, it is important to renew your policy on time. You can opt for reminders or set one yourself to ensure you do not miss the date. 

• Go Through the Policy Terms

Your policy document will clearly state the inclusions and exclusions, which will determine whether your claim will be accepted or rejected. Read through it carefully before filing a claim. 

 

If you feel that your policy coverage is inadequate, compare your options. Switch the insurer at the time of renewal or even during the policy period.

• Have a Valid Driving License

Holding a valid (unexpired) driving license is a crucial requirement of insurers. If you do not have a license and drive the vehicle, you are breaking the law. As such, the insurer is not liable to cover any costs related to damage or loss. So, do not drive without a valid license.

• Declare Information Accurately

Disclosing all the relevant details is crucial. This includes informing the insurer about any modifications, mentioning the right NCB, and other details. 

 

If there is any discrepancy, the insurer has the right to reject your claim. In some cases, failure to disclose information can void your policy.

• Ensure You Do Not Violate Any Laws

In case you were not driving as per Indian traffic rules and regulations when the damage occurred, the insurer can reject your claim request. Ensure that you do not drive without the right paperwork, drive under the influence, enable underage driving, and more.

• Follow the Claim Procedure

Every car insurance provider has a different process to file claims. If you do not follow it, the chances of facing rejection increase. 

 

You must also ensure that you file the claim within the stipulated period. You can find these details in your policy document, on the insurer’s website or app, and by talking to the customer support team.

• File an FIR Immediately

A police complaint is mandatory when you file a claim against your car insurance policy, especially in case of an accident or theft. If you do not file an FIR or submit a copy of it, the insurer can reject your claim.