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Getting car insurance isn’t the most fun task on your list—but it’s super key. Whether it’s your first car or you’re changing insurance firms, there’s more to it than just going for the cheap one. You need to look at what’s covered, what’s not, extra bits, and, yes, those hidden rules that might trip you up later. While you’re making smart choices for your car, why not think about term insurance online too? Keeping your car safe is good, but keeping yourself safe? Even better. In this blog, I’ll go over the top 5 things you should check before you get vehicle insurance, so you don’t end up paying more, or worse, getting less when you really need it.
1. Pick the right plan type: Comprehensive vs. Third-Party:
When I first checked out car insurance, I believed “all plans are the same”—not true! There are two kinds:
a. Third-Party Liability Insurance:
- What it does: Pays for damage or harm you do to someone else or their things.
- Why folks choose it: It’s the least you need by law in India, so it costs less.
- The problem: It doesn’t pay for your own car, so you have to pay even for a tiny scratch.
b. Comprehensive Car Insurance:
- What it protects: It covers harm to other cars and your own (crashes, theft, fire, big storms).
- Why folks choose it: It gives full safety and calm thoughts.
- The catch: You pay more, yet it’s often a good pick for new or costly cars.
Pro-Tip: If your car is more than five years old and its value has dropped a lot, think about the extra cost of full cover compared to what you might pay to fix it. You could switch to basic cover and add extras for damage and theft on your own car.
2. Check the Insured Declared Value (IDV):
The IDV is the top amount your insurer will pay if your car is stolen or a total loss. Think of it as the car’s “insured market value.”
- How they figure it: maker’s price minus loss in value, depreciation (changes with age).
- Why it’s key: Too low an IDV = too little money after a total loss. Too high = you pay too much each month.
Pro-Tip: Check how fast your insurer says your car loses value—some brands lose it faster. If you think your car keeps its worth well, try to get a slightly bigger IDV to dodge low payouts later.
3. Look at Riders & Add-ons:
After you choose your main plan, companies will try to sell you extras. Here are the most helpful:
a. Zero Depreciation:
Good: They pay you without cutting the value of parts (best for new cars).
Cost: 10-20% more price.
b. Engine & Gear Parts Cover:
Good: Pays for big fixes that don’t come from crashes.
Cost: 5-10% more.
c. Help on the Road:
What you get: Tow, fix on the spot, emergency gas.
What you pay: Small, but can save you on empty roads.
d. Cover for Accidents:
What you get: Extra cash if the driver or rider gets hurt.
What you pay: Not much, and mostly a good idea to have.
Pro-Tip: Don’t pay extra for quick claim services—many insurers give them at no cost now. Better spend money on zero-depreciation and road help, which you’ll really need.
4. Look into Insurer’s Claim Settlement Rate & Partner Garages:
The extra features aren’t worth much if your insurer is slow with claims.
a. Claim Settlement Rate (CSR): It shows the share of claims settled compared to those made.
- What to check: Go for >95%. Insurers show CSRs every year.
b. Partner Garages:
- Why this is key: Cashless fixes at these garages mean you pay just the deductible.
- Find partner garages in your town and on the ways you often travel—if none are close, a “cashless” deal takes cash from your pocket.
Pro-Tip: Hop into local car owner forums or WhatsApp chat groups. True reviews on claims and shop work are very useful. They are more honest than formal statistics.
5. Look at Policy Terms, Discounts & Premiums:
Lowest cost? It doesn’t mean it’s the best deal. Here’s what to look at:
a. Premium Quotes: Use sites that mix info to see actual costs after No Claim Bonus (NCB) and needed GST.
b. No Claim Bonus (NCB):
What it is: Cut on the cost for each year with no claims (up to 50% after 5 years).
Why it is key: Keeping NCB can be more worth it than small cuts when changing insurance folks.
c. Sub‑Limits & Deductibles:
Own Damage Cut: What you choose to pay out of your own will—more mean less cost on your bill.
Sub-Limits for Small Stuff: Look into whether little bits like nuts and bolts get paid for in small asks, or if you will have to pay more for them.
d. Policy Time:
1-Year vs. Many-Year Plans: Getting a policy for many years cuts down on the need to renew and do new math, but you might pay more at the start.
Pro-Tip: Before you renew, check other options—even if you like your current firm. At times, other firms might offer extra perks or loyalty cuts that beat your No Claim Bonus.
Conclusion:
To get car insurance,make sure you:
1. Pick the right policy option (third-party vs. full),
2. Set a true IDV,
3. Choose helpful extra covers,
4. Check your insurer’s history and connections, and
5. Look at actual premiums and terms,
and you’ll be set to drive with a plan that keeps both your car and your money safe.
FAQs:
1. Can I go from basic to full cover in the middle of my plan?
Yes, up to 90 days before it renews, you can change by paying the extra fee—good if you think you’ll face more risks.
2. What will happen to my NCB if I make a claim?
Your NCB will go down to zero for the next plan year. But many companies give you “NCB Protector” add-on that lets you claim once without cutting all your bonuses.
3. Should I get an engine cover for my old car?
If your car is more than eight years old, the maker promises end and engine issues are more likely—engine cover can be wise to have.