Some things to keep in mind while reviewing various car insurance quotes

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02 Aug 2023

Steps to renew Car Insurance Quotes & Car insurance IDV calculator Process

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.

Related Blogs
All about consequential damages in car insurance
Here are some traffic rules you may not be familiar with in India
Difference Between First Party vs Third Party Car Insurance


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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.