Measures Taken before Taking up the Online Car Insurance Plan


Car insurance is a necessary investment you have to make when you purchase a car. In India, it is mandatory by law to have a valid car insurance for all vehicle owners. You can opt for online car insurance and complete the necessary formalities effortlessly. Instead of blindly purchasing the car insurance suggested by the insurance agent, you can make an informed decision by comparing various insurance policies online. This way, you can buy the insurance policy that covers all your requirements.

Although purchasing online car insurance in 2018 is a simple process, you need to take few measures to get the best deal. These are:

1) IDV (Insured Declared Value)

The insured declared value is the approximate current market value of the car as assessed by the insurance company. There are chances that the company might reduce the IDV to lower your insurance premiums. This is not advisable and ensure that the  IDV matches the current market value of your car.

2) Garage Network

Check for the garage network of the insurance company. Most insurance companies offer cashless repairs at the garages within their network. This way, you can have smooth cashless transaction where the insurance company will directly settle the bill with the network garage.

3) Personal Accident Cover

Most insurance companies offer a personal accident cover up to INR 1 lakh for nominal amount included in the insurance premium. You can opt out of this option if you have separate health insurance.

4) Claim – Settlement Ratio

This is a vital factor you need to consider while purchasing online car insurance in India. Most companies offer a quick claim to settlement process on paper but, the claim to settlement ratio does not reflect the same. Hence, select a company that has a high claim to settlement ratio to ensure that you get your claim settled quickly in case of a mishap.

Different Plans Available For Car Insurances

You have to consider a plethora of options while selecting car insurance. The first step in this process is to select if you require third party insurance or comprehensive insurance. The chief differences between these types are:

a) Third Party Car Insurance

In India, you’re required to have at least third party insurance for your vehicle. If you opt for the third party insurance, the insurance company will compensate the third party involved in the accident for all bodily injuries and vehicular damages. This type of insurance will not cover any damages caused to your vehicle. Most insurance companies will not cover the costs of your medical treatment either.

b) Comprehensive Car Insurance

Comprehensive car insurance covers all the terms and conditions included in third-party insurance and much more. In comprehensive car insurance, the insurance company will cover all the damages caused to the third party and the damages caused to your vehicle as well. It will cover the vehicle repair costs as well as your medical bills. Apart from an accident, comprehensive insurance will also cover the damages caused to your vehicle in a natural or manmade disaster.

Differences in Prices for Different Plans

Due to the significant differences in features of both the insurance policies, the insurance premiums also vary. The insurance premium for the third party insurance is determined by the IRDA (Insurance Regulatory & Development Authority of India). The insurance premium for different categories of cars based on their engine capacities as per April 1st, 2017 are:

  1. a) Less than 1000 cc – INR 2,055
  2. b) Above 1000 cc and less than 1,500 cc – INR 2,863
  3. c) More than 1,500 cc – INR 7,890

The insurance premium for comprehensive car insurance is determined based on the car’s engine capacity, dimensions, category, the region it was purchased, add-ons, etc. The various add-ons options available with comprehensive car insurance policy this year are:

  • Roadside Assistance
  • Key Replacement
  • Medical Expenses
  • Hydrostatic lock cover
  • Engine and Gearbox cover
  • No Claim Bonus Protector
  • Ambulance Charges

Your insurance premium will increase if you add more add-ons to the car insurance policy. Hence, choose the ones that you need the most.

Flexibility Redefined

In today’s digital world, it is easier to purchase online car insurance than it was a decade ago. For example, you can accurately compare insurance policies including their benefits, inclusions, exclusions etc. and purchase the one that suits you the most on