10 Questions to Ask Yourself Before Purchasing Car Insurance

What kind of insurance policy do I need?

Knowing your needs is the first step in choosing the most suitable Car Insurance coverage. Indian Car Insurance mainly provides three policy types:

 

• Third-Party Liability Insurance: Third Party Liability Insurance is mandatory under the Motor Vehicles Act of 1988, this insurance insures against harm to other people, property, or vehicles.

• Own-damage Insurance: This covers your car's damages from theft, fire, natural disasters, and accidents. If you already have third-party insurance coverage, you can buy it separately.

• Comprehensive Insurance: Comprehensive Coverage Insurance provides coverage for both third-party liabilities and your own vehicle's damage from theft, accidents, natural disasters, and other causes.
   

 Comprehensive Insurance provides both Own Damage and Third-Party coverage, along with a variety of add-ons to enhance your protection. For the best overall coverage, it’s a good idea to consider Comprehensive Insurance.

 

 

What is the full coverage of the policy?

Reading the policy document carefully is crucial. Full coverage doesn’t mean “all-inclusive.” Most Comprehensive Car Insurance plans cover:

 

• Damage due to accidents, fire, natural calamities, and theft

• Third-Party Liability

• Personal accident cover for the owner-driver
   

However, exclusions exist. For instance, damages caused due to drunk driving or negligence are not covered. Always verify the policy’s scope before committing.

 

Is Third-Party Liability Insurance policy included?

Since Third-Party Insurance is mandatory in India, ensure your policy includes it. While it covers damages to third-party property and individuals, it doesn’t cover your car’s damages. For complete protection, the Car Insurance package should ideally include both Own Damage and Third-Party Coverage.

 

Are there any special discounts or deals on the Car Insurance policy?

You may lower your premiums by taking advantage of the reductions that many insurers provide. Enquire about:

• No Claim Bonus (NCB): a discount on renewal for years without a claim.
   

• Voluntary deductibles: A voluntary deductible in car insurance is the predetermined amount that the policyholder consents to pay out of pocket when purchasing car insurance. The voluntary deductible component, in contrast to a compulsory one, is entirely up to the individual user and is not enforced by the insurance company. Choosing a larger voluntary deductible lowers your premium but raises the amount you must pay out of pocket in the event of a claim.
   

• Anti-theft device: If your vehicle has an anti-theft system that has been authorised by the Automotive Research Association of India (ARAI), there will be a reduction in your premium.
   

Your cumulative insurance expenses can be lowered by adding together these small reductions.

 

How long does it take for me to get the insurance claim?

A crucial question to ask when buying Car Insurance is about the claim settlement process. Quick settlements indicate a reliable insurer. Check for:

 

• The claim settlement ratio (CSR) of the insurer

• The ease of the claim process—whether it’s online or requires physical documentation

• The time taken for settlement—some insurers provide cashless claims within a few days

 

How can I cut down on the Car Insurance premium pricing using insurance deductibles?

Deductibles refer to the amount you pay from your pocket before the insurer covers the rest. There are two types:

 

• Compulsory deductible: Set by IRDAI, this is a fixed amount you must pay before the insurer settles your claim. It varies based on the car’s engine capacity. For instance, vehicles with engine capacity up to 1,500cc have a mandatory ₹1,000 deductible, whereas vehicles beyond 1,500cc have a ₹2,000 deductible. 
   

• Voluntary deductible: You choose this amount, and higher deductibles mean lower premiums
   

Opting for a higher voluntary deductible can help you reduce premiums, but ensure it’s an amount you can afford in case of a claim.

 

What should I expect out of my Car Insurance policy?

Your expectations should be consistent with what the policy provides. A decent checklist for Car Insurance consists of:

 

• Coverage for major risks such as theft, accidents, and natural disasters

• Simple claim process

• Add-on insurance coverage such as Zero Depreciation, Roadside Assistance, and Engine Protection

• An extensive network of cashless repair garages
   

Making sense of these factors will assist you in choosing the ideal Car Insurance package for your requirements.

 

What is excluded from the Car Insurance policy’s scope?

Exclusions define what your insurance won’t cover. Some common ones include:

 

• Driving under the influence of alcohol or drugs

• Intentional damages or illegal activities

• Regular wear and tear

• Mechanical or electrical breakdowns
   

Understanding these exclusions prevents surprises during claim settlements.

 

How will my car be valued?

The Insured Declared Value (IDV) determines your car’s worth in case of total loss or theft. It’s calculated based on the car’s ex-showroom price minus depreciation. A lower IDV means a lower premium but also a lower payout in case of a claim. Choosing an appropriate IDV ensures you get fair compensation.

 

Conclusion

Purchasing Car Insurance involves more than simply getting the best deal; it also involves making sure that the benefits, coverage, and claims process are suitable for your needs. Making an informed choice when purchasing Car Insurance is facilitated by asking the appropriate questions.

 

When selecting a policy, consider an insurer that provides affordable plans with multiple add-ons, a speedy claim process, and on-time customer service—just like Shriram Car Insurance. With benefits like No-Claim Bonus, and add-ons like Roadside Assistance, Zero Depreciation and Engine Protection, Shriram General Car Insurance ensures complete peace of mind for Indian car owners.

 

FAQs

1. What are the most important factors to consider when buying Car Insurance?

Considerations include coverage type, deductibles, premium cost, insurer reputation, and the claim settlement process.

 

2. What is the ideal IDV for my car?

Your car's market value should be reflected in the IDV to guarantee the fair resolution of your claim. Choosing a low IDV lowers premiums but also leads to lower claims amounts.

 

3. Is Third-Party Insurance enough?

Third-Party Insurance is mandatory, but it only provides coverage for damages and injuries to third parties. It is recommended to protect your car with a comprehensive Car Insurance package.

 

4. How can I reduce my Car Insurance premium?

Install an anti-theft device, keep up a clean driving record, and accrue No-Claim Bonus.

 

5. Can I switch my Car Insurance provider mid-policy?

Yes, it is possible to change your insurance during renewal. Before switching, make sure to compare policies and look at the claim settlement ratio.