Car Insurance Buying Guide

Buying your dream car is an unforgettable milestone. But what comes next? The essential question: “How to get car insurance?”.

Choosing the right car insurance policy with adequate coverage and features is necessary for a safe and enjoyable experience on the road. With countless options available, choosing the right car insurance plan for your car can be a difficult task.

Here is a car insurance buying guide that can help you select the most suitable and affordable policy.

Why Is Choosing the Right Car Insurance Plan Important?

Before we get into the car insurance guide, let's understand why it is important to choose the right policy.

• Optimal Financial Protection- By choosing the right car insurance policy, you can ensure adequate financial protection specific to your usage conditions.
• Personalised Protection- The best car insurance policy allows you to customise it based on your specific needs and changing priorities.
• Seamless Claim Experience- By selecting the best car insurance policy, you can also ensure a seamless claim experience when you are in need of extreme financial support.
• Cost Savings in the Long Run- The right car insurance policy can minimise your out-of-pocket expenses by covering repair costs and providing extra benefits, offers and discounts.  
• Extensive Options- With extensive options available, selecting the right product ensures you secure coverage that fits your specific budget and needs.

How to Buy Car Insurance? - Car Insurance Buying Guide

• Assess your Requirements

Start by assessing key factors such as your car’s make, model, age, and specifications, as these influence potential repair costs. Consider your usage patterns, whether for daily commutes or frequent long-distance travel.

Also, understand your typical routes and risk exposure, especially if they include accident-prone zones.

• Types of Car Insurance Plans

You can choose the type of car insurance you need based on your requirements. For instance, third-party car insurance is suitable if you own an old car and use it less frequently, and comprehensive car insurance is suitable if you seek complete protection.

• Insured Declared Value (IDV)

IDV in insurance is the maximum amount that you can receive from your car insurance claim in the event of total loss or theft. It is calculated based on your car’s current market value and accounted for its depreciation.

You can determine this value at the time of purchase and during car insurance renewal. However, keep in mind that a higher IDV leads to a higher premium, while opting for a lower IDV may result in inadequate coverage.

• Compare Car Insurance Plans

Now that you know your requirements, it is time to compare and choose the right car insurance plan for your financial protection. Compare different policies based on their products, coverage benefits, discounts, etc.

The next few pointers will help you understand the different factors to consider when choosing a suitable policy.

• Add-On Covers

Add-ons are optional covers that can be included in your car insurance policy for additional protection. Find the range of add-ons offered and the applicable premium. Here are a few popular add-ons:

• Nil Depreciation- Settles the full car value for the damages without accounting for the depreciation.
• NCB Retention - Retains the NCB discount even if you file a car insurance claim.
• Consumables Cover- Covers the cost of replacing consumables
• Roadside Assistance- Provides emergency and repair services in case of an unexpected breakdown.
• Tyre Protection- Covers repair or replacement of tyres due to accidental loss or damage of tyres and tubes.

• Car Insurance Policy Inclusions and Exclusions

Carefully review the policy document to fully understand the inclusions and exclusions of your car insurance plan. This will help you know what is and isn’t covered and the extent to which you can file a claim.

Without this knowledge of the insurer’s specific car insurance guidelines, you may unknowingly file a claim for a benefit that isn’t covered, which may lead to its rejection.

• Premium

Determine and compare the premiums across the different products. It is important to strike the right balance between the required level of coverage and affordability. Although a lower premium can seem appealing, it could mean limited protection.

• Network of Garages and Cashless Repairs

Cashless repairs allow you to get your car repaired at a network garage without having to pay for the expenses out of your pocket. In case of cashless repairs, simply take your car to a network garage, and your insurer will pay the bills directly.

• Deductibles

Deductibles refer to the percentage of claim amount that you need to pay before your insurer covers the remaining amount. A higher deductible often results in a lower premium, but it means you will pay more out-of-pocket expenses in the event of a claim. Always look out for a deductible that aligns with your financial condition.

• Claim Process and Claim Settlement Ratio

Ensure that you check how easy it is to file a cashless or reimbursement claim and the process for quick settlement of expenses. A simple car insurance claim may essentially have the following steps:

• Step 1: ​Intimate the insurer online or offline and gather the required documents.
• Step 2: Take the car to a network garage for cashless and any authorised garage for reimbursement claims.
• Step 3: Coordinating with the surveyor for cashless claims and submitting the required documents, including payment bills and receipts for reimbursement claims.
• Step 4: Settling the bills directly at the garage for cashless claims and compensating the expenses later for reimbursement claims.

In addition, research the claim settlement ratio, which refers to the percentage of claims settled by the insurer. A higher claim settlement ratio indicates the insurer’s efficiency and reliability in settling claims.

Also Read: Car Insurance Claims

• Customer Support And Reviews

Apart from the claim process and settlement, you also need to review customer feedback. Research customers' car insurance experiences, customer support responses, and offers and discounts to help you make well-informed decisions.

• Offers and Discounts

Apart from the standard discounts, such as the No Claim Bonus,  look out for additional offers and discounts that can reduce your premium or offer additional protection.

• Online Compatibility

Look for car insurance policies that can be purchased online. This will help you calculate the premium for the car insurance features you have chosen and compare them to make the right choice. It will also help you maintain and renew your car insurance policy in a timely manner by ensuring that your coverage remains active.

Why Should You Consider Beyond Premium To Compare Car Insurance Plans?

When you research car insurance products to choose a suitable policy, the main factor that people generally consider is the premium rate. However, seeking a car insurance policy at a lower premium should not be the real objective.

Here are a few reasons to consider things beyond premiums when comparing car insurance plans.

• It can mean inadequate coverage- A car insurance policy with a lower premium may offer a lesser scope of coverage with fewer add-on options and benefits.
  
• It can lead to higher deductibles- A lower premium for a car insurance policy may lead to higher deductibles. It means you end up paying a higher amount for every claim.
• You may have to compromise on the quality of service- Starting from purchase to coverage features and claim settlements, you may have to compromise on every aspect of car insurance plans.

The guide to buying auto insurance can help you choose the right car insurance policy with adequate coverage and the best services. However, if you are still interested in cheaper car insurance plans, here is what you can do.

How To Choose Car Insurance With A Lower Premium?

• Compare Car Insurance Online- Use a car insurance calculator to compare policies based on premium rates. This will help you determine the most affordable product for the type and extent of coverage you need.
• Choose the Add-Ons Wisely- While add-on optional covers enhance coverage, they are available at an additional cost. Therefore, assess your specific needs and financial comfort before choosing the add-ons.
• Look out for Discounts- Insurers often offer competitive rates and special discounts on car insurance plans. Research and identify these discounts and offers to get the best value for your coverage.
• Adjust your IDV- While many factors affect your premium, the Insured Declared Value (IDV) plays a major role. Set your IDV to strike the right balance between sufficient, comprehensive coverage and affordability.

Guide to Buying Auto Insurance - Additional Tips

• Refrain from making claims for minor damages to accumulate the No Claim Bonus that can reduce your premium by up to 50%.
• You can always opt to switch your car insurance provider if you are not satisfied with their service without affecting your earned benefits, such as the No Claim Bonus.
• Try to avoid bringing an insurance agent. They can ask for a higher commission and direct you to buy a specific product.
• Review your car insurance policy annually and modify it based on your changing priorities for better protection.
• Look out for hidden fees that can increase the overall cost of your car insurance policy.

Why Should You Consider Reliance General Insurance For Your Car Insurance Policy?

Buy Reliance Car Insurance plans and enjoy the following benefits:

Frequently Asked Questions About Car Insurance Buying Guide

1. Which insurance is best for a car?

   There cannot be one car insurance policy that is best for all buyers. The policy for your car will depend on various factors, such as its specifications (age, make, model, etc.), usage, location, and driving profile. Therefore, it is important to compare and choose the best policy that suits your specific needs.

2. What are the disadvantages of purchasing a low-priced car insurance policy?
   1. Insufficient coverage - A low-priced car insurance policy may not provide sufficient coverage to cover all the potential risks.
   2. Limited Add-ons - You may not be able to enhance the coverage of your car insurance policy with add-ons specific to your needs.
   3. Higher Deductibles - You may have to pay a higher deductible during a claim out of your pocket.
3. Do insurers inspect vehicles before issuing car insurance online?

   Inspection is not required for new cars or for cars that are renewed before the policy expires. However, it may be necessary if your car insurance policy has expired and you are purchasing a new one.

4. Can I buy third-party car insurance plans online?

   Yes, you can buy third-party car insurance plans online.

5. How can I submit my identity-related documents when I purchase car insurance online?

   You can upload the identity-related documents as you proceed to purchase the car insurance policy online.

6. Can I switch to a new insurance provider at the time of car insurance renewal?

   Yes, you can switch between car insurance providers at the time of renewal.

7. How to get online car insurance?

   To purchase car insurance online with Reliance General Insurance, you can refer to our Car Insurance Online page.

8. Is it essential to include add-ons to my car insurance policy?

   You can include add-ons to enhance your car insurance policy based on your specific needs for additional protection. However, it is not mandatory.

9. Can I buy add-on covers separately?

   No, add-on covers can be purchased only with a base car insurance policy. It cannot be purchased separately as a standalone policy.

10. How do I compare car insurance plans in India?

    You can compare car insurance plans based on various factors, such as the types of policies offered, flexibility, premium, add-ons, optional covers, network of cashless garages, claim procedures, insurer’s reliability and claim settlement ratio.

Disclaimers:

• *T&C Apply. For more details on risk factors, terms conditions, brochure, and exclusions, please read the policy wording and CIS carefully before concluding a sale.

• This is the overall claim settlement ratio for FY 2023-24 without claim outstanding at the start of the financial year as per public disclosure of Reliance General Insurance Co. Ltd.

• The premium mentioned for car Insurance excludes taxes for the private car model Maruti Suzuki Alto 800 with a cubic capacity of less than 1000 cc for a 1-year Own Damage Insurance policy for an IDV of ₹2,34,728. The premium used is 2,853/year as of 1 March 2023 and then converted into a per-month basis, which gives us ₹238/month (2,853/12).

• The discount varies basis vehicle specifications, No Claim Bonus discount and Geographical location of the vehicle to be insured. Discounts have been calculated on the basis of the rates prescribed under erstwhile Indian Motor Tariff. Discounts are applicable only to the Own Damage section and discounts may vary as per the vehicle make, model, RTO, age of the vehicle and addition of add-ons like Reliance Limit Sure-Pay As You Drive.