Car Insurance Checklist: Essential Questions to Ask Before Purchasing

What Are the Key Factors to Consider?

Let’s start with the basics: what elements should you always look at when evaluating a Car Insurance policy?

 

1. Know the types of Car Insurance available

Third-Party Insurance: This is required by Indian law and protects against liability for injuries or damages caused to third parties. It doesn't, however, cover your own vehicle.

• Comprehensive Insurance: This includes coverage for both third-party liabilities and your own vehicle's damage from theft, disasters, and accidents.

• Add-ons: You may choose from options like Roadside Assistance, Engine Protection, Zero Depreciation, and more to boost your coverage. 

By being aware of these possibilities, you can modify your insurance to your car's age, usage, and risk tolerance.

 

2. Understand IDV in Car Insurance

The Insured Declared Value (IDV) is the maximum amount you will get in the event of total loss or theft of the vehicle. It’s essentially your car’s current market value as agreed upon in the policy.

 

Choosing a very low IDV may save you some rupees on the premium now, but it could leave you undercompensated later. Conversely, an inflated IDV increases premiums unnecessarily. Always ensure you strike the right balance.

 

Essential Questions to Ask Before Buying Car Insurance

Here’s a checklist of smart questions to ask your insurer or compare online:

 

1. What types of coverage are included?

Is personal accident coverage included in the policy? Are riot or flood-related damages covered? What about damage to the windscreen or towing fees? Register very clearly what is and is not included in the policy.

2. How is the premium calculated?

The premium depends on factors such as:

• Vehicle make, model, and age

• Zone of registration

• Engine capacity (CC)

• Chosen add-ons and deductibles

• Your claim history

Ask for a detailed premium breakdown and explore customisation if possible.

3. What is the IDV in Car Insurance, and can I change it?

Always make sure you can update your IDV while staying within the permitted range. Although it also involves a higher premium, a little greater IDV indicates better compensation. Make an informed decision.

4. What is the claim settlement ratio of the insurer?

The claim settlement ratio represents the percentage of claims successfully resolved by the insurer within a certain time frame. Although IRDAI reports provide general market statistics, you may confirm particular insurance companies' ratios by visiting their official websites or public disclosures. This provides a clearer picture of the insurer's dependability in the most critical situations.

5. Are there any exclusions or hidden charges?

Request a list of the policy's exclusions. For example, damage caused by electrical failure, drunk driving, or operating the vehicle for commercial purposes might not be covered. Also, clarify whether any administrative or inspection costs may surprise you later.

6. Can I reduce my premium without sacrificing coverage?

Definitely. Try the following:

• Install ARAI-certified anti-theft devices to receive discounts on the premium.

• To keep your No Claim Bonus (NCB), refrain from making unnecessary claims.

• If you can cover small expenses out of pocket, increase your voluntary deductibles.

7. What is the insurer’s garage network?

Cashless claims are honoured only at network garages. Make sure your preferred service centre is listed or that there are enough options in your area and travel routes.

 

Common Mistakes to Avoid When Selecting Car Insurance

Even seasoned vehicle owners make these common mistakes:
 

1. Ignoring exclusions: Don’t just skim through the exclusions page — read it thoroughly. Many complaints arise because the policyholder assumed a situation was covered when it wasn’t.
    
2. Overlooking useful add-ons: Add-ons like Engine Protection or Zero Depreciation coverage may make all the difference, particularly for new or expensive cars. While evaluating these, consider your driving style and the car's current condition.
    
3. Picking the cheapest policy blindly: A lower premium might indicate insufficient coverage or a poor claims experience. Look at value as well as price. A slightly higher premium might offer superior service and protection.

 

Conclusion

Selecting the most suitable Car Insurance doesn't have to be difficult. Use this Car Insurance checklist to better understand your needs, compare plans, and ask the important questions—from types of Car Insurance to IDV in Car Insurance and everything in between.

 

Still wondering how to select trustworthy and Comprehensive Car Insurance? Insure with us! Shriram Car Insurance provides transparent, hassle-free coverage designed for drivers on Indian roads with our reasonably priced plans, customised packages with add-ons, and an extensive cashless garage network. Claim filing and policy renewals are now simpler than ever, thanks to our digital policy management and dedicated customer support. Explore our plans today.

 

FAQs

1. Is Third-Party Car Insurance sufficient?

Although it meets the legal requirements, your own car is still not protected. For full coverage, a Comprehensive Car Insurance policy is advised.

 

2. What is NCB, and how does it benefit me?

If you made no claims during the previous policy year, you will receive a discount on your renewal premium, known as the NCB (No Claim Bonus). The premium can be lowered by up to 50%.

 

3. Can I switch insurers and retain NCB?

Yes, you can transfer to a different insurer and retain your benefits if you have documentation of your NCB, which will be in your renewal documents.

 

4. Is it possible to buy or renew Car Insurance online?

Of course. You may purchase and manage your Car Insurance entirely online with most insurers.

 

5. How do I file a Car Insurance claim?

After the accident, notify your insurance right away. Prepare all necessary documentation, including an FIR (if applicable), photographs, and repair estimates. Choose between cashless or reimbursement options as needed.