7 Things to consider when buying car insurance in India

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16 Aug 2023

Essential Factors to Keep in Mind for Car Insurance in India

With the multitude of insurance options available, selecting the right policy can be a daunting task. To help you make an informed decision, we've compiled a list of seven essential factors to consider when buying car insurance in India.

Types of coverage

Car insurance in India comes in two main types: third-party liability insurance and comprehensive insurance. Third-party insurance covers damages caused to third-party property or injuries, as mandated by law. Comprehensive insurance, on the other hand, provides coverage for both third-party liabilities and damages to your vehicle. Assess your needs and choose the coverage type that aligns with your requirements.

Things to consider when buying car insurance in India

  • Insured declared value (IDV)

It's crucial to set an appropriate IDV, as a lower value may result in insufficient compensation during a claim, while an inflated value might lead to higher premiums. The Insured declared value is the maximum amount that you'll receive in case of a total loss or theft of your vehicle. Research the market value of your vehicle and select an IDV that accurately reflects its worth.

  • Add-on covers

Kotak general insurance offers a variety of add-on covers that provide additional protection beyond the standard policy. Assess your driving habits, location and potential risks to determine which add-ons are worth considering to enhance your policy's coverage. We have zero depreciation cover, engine protection, roadside assistance and more add-on covers.

  • No claim bonus (NCB)

Consider a policy that offers a substantial NCB discount, as it can lead to significant savings over time. The no-claim bonus is a reward for not making any claims during the policy term. It results in a discount on the premium during the policy renewal. Be aware of how NCB can be transferred when switching insurance providers.

  • Network of cashless garages

Kotak general insurance has tie-ups with a network of cashless garages where policyholders can avail of repair services without having to pay upfront. This feature can simplify the claim process and make post-accident procedures smoother.

  • Exclusions and limitations

It's crucial to thoroughly read and understand the policy's terms and conditions, especially the exclusions and limitations. Coverage for specific scenarios, such as drunk driving or intentional damages could be excluded. Familiarize yourself with these details to avoid any surprises when making a claim.

  • Premium costs

While comparing premium costs is essential, it's equally important to focus on the value provided by the policy. Cheaper premiums may come with limited coverage, so consider the coverage offered, add-ons included. Look for a balance between affordability and comprehensive insurance premiums.

Conclusion

Buying car insurance is a significant decision that requires careful consideration of multiple factors. By keeping these seven aspects in mind such as coverage type, IDV, add-on covers, NCB, a network of cashless garages, exclusions and premium costs—you can make an informed choice that aligns with your needs and budget. Prioritize your comprehensive coverage plans with kotak general insurance, that not only meets legal requirements but also offers financial security and peace of mind on the road.

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Team Kotak GIC

The content of this blog has been created and carefully reviewed by the esteemed team at Kotak General Insurance, with the sole purpose of providing valuable guidance and sharing insights on the importance of general insurance. Our objective is to assist users in making informed decisions when purchasing or renewing insurance policies for their cars, bikes, and health. Our expertly curated information aims to empower our readers with the knowledge they need to protect their valuable assets and financial interests.