< Back

Motor

big-banner-blog-v03-010722

Most experts recommend comparing car insurance quotes before picking a policy for your car. However, how would you decide between the various options? What points should you keep in mind while comparing? Let's look at 5 essential points to keep in mind.

1. The extent of the coverage

The first thing to check is the extent of the coverage offered. There are 3 major types of coverage here-

• 3rd Party Liability:

This is mandatory coverage for driving on the public roads and provides coverage against damages caused by your vehicle to any 3rd party (property or person).

• Personal Accident Cover:

Again, all car owners must have a PA cover. This compensates the driver in case of injuries, permanent disability or death caused by accident. In case, the car owner already has a separate PA cover; they can opt out of it while buying or renewing a car insurance policy.

• Own-Damage Cover:

This protects car owners against any damage caused to the car during an accident. The extent of the coverage will depend on the policy terms.

If you're buying a comprehensive policy, you'll be covered against all 3 damages. However, it is vital to know the coverage extent, especially related to own damage.

While IRDAI regulates the prices of 3rd party cover and PA cover, the own-damage premium may vary. Hence, paying particular attention to this part when comparing car insurance policies is essential.

2. The IDV of the car

The next thing to check is the Insured Declared Value or IDV of the car, especially if you're buying a comprehensive policy. IDV is the maximum value of your car the insurance company agrees to give you in case the car is totalled in an accident or lost beyond recovery, such as theft.

You may find some car insurance quotes lesser than others, but if you look closely, the IDV is lowered. However, keeping it very high is not good either. The best IDV of the vehicle should be as per the IRDA regulations, depending on the age of the car and its price. Follow this table to calculate the right IDV of your car. IDV Calculator Table

Vehicle Age Depreciation
< 6 months 5%
6 months-1 Year 10%
1-2 years 15%
2-3 Years 25%
3-4 years 35%
4-5 years 40%
5-10 years 50%

The depreciation to be charged on the car’s ex-showroom price.

3. The add-ons of the policy

Take a close look at the add-ons on the policy. These can be opted by paying additional premium. Hence they have a direct impact on the policy premium. While some add-ons may be helpful, others may be making your policy unnecessarily expensive. A good idea would be to make a list of add-ons that you find valuable beforehand so that you don't buy the wrong add-ons.

4. Volumtary deductibles

When comparing car insurance quotes, don't forget to consider the deductibles. This is the amount you promise to pay every time you file your insurance claim. So while it may reduce your premium now, it will increase your expense later while filing your claim.

5. The reputation of the insurance company

A policy is only good if it comes in handy in time of need. Thus, it is essential to look at the reputation of the insurer. But how do you check that? Here are a few tips.

• Registered List of Insurers by IRDA:

As a basic hygiene measure, make sure the insurer is listed as one of the registered non-life insurers by IRDA. You can check the list here.

• Claim Settlement Ratio (CSR):

CSR is the ratio of total claims settled against total claims filed (all insurance claims, including car insurance). A high CSR means a better chance of settling claims.

• Reviews:

Check for genuine reviews of the insurer you are considering. Good reviews mean better customer support and ease of claim settlement.

Final Word

While you should look for affordability, don't forget to pay attention to the points mentioned above. You can choose to buy Kotak Car Secure, a comprehensive car insurance policy that safeguards you and your car against possible damages in case of any unforeseen circumstances.

Disclaimer: The content provided is for education and informational purpose only, none of the information contained in our blog amounts to any form of opinion or advice. Please go through policy related documents carefully or consult an expert before making any insurance-related decisions.

RELATED ARTICLES

Car Insurance Benefits

Motor

Benefits of car insurance

A car insurance can help you offset substantial financial loss that you may incur because of damage caused to your car

Add-on covers for Car Insurance

Motor

Must have Add On Covers for Car Insurance

A basic comprehensive car insurance covers damage to car, 3rd party liability and theft & loss of vehicle.

Car insurance

Motor

Right time to buy vehicle insurance

Buying a vehicle insurance is an important decision and you need to ensure that you make a timely purchase of vehicle insurance

know-how-car-insurance-premium-is-calculatedcde

Motor

Know How Car Insurance Premium Is Calculated

Car insurance premium calculation is based on various important factors. Learn about these factors.

rules-to-follow-for-safe-driving-th

Motor

Rules to follow for safe driving

Know About The Important Road Safety Rules To Follow

 

 

significance-of-a-motor-vehicle-insurance-policy

Motor

Significance of a motor vehicle insurance policy

Apart from financial security, know in what all ways a motor insurance policy is significant.

maintenance-tips-for-car-engine

Motor

Maintenance tips for car engine

Follow these maintenance tips and buy a car insurance with engine protection cover to keep engine secure.

Monsoon Tips Car

Motor

Monsoon Tips for Car

Simple tips to help you stay safe and keep your car moving ahead during monsoon.

What is Zero Depreciation Cover

Motor

What is Zero Depreciation Cover

Read on to understand what is zero depreciation car insurance cover and how it works.

Questions Regarding Motor Insurance Policies

Motor

Questions Regarding Motor Insurance Policies

Essential questions answered about motor insurance policies in India.