Car Insurance
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A car insurance policy protects you financially if your car causes damage to someone else's vehicle or property in an accident. It also covers damage to your own car from accidents or natural disasters.
Highlights of Car Insurance Plans
Most popular Car Insurance Plans
ICICI Lombard
Cashless Garages
5600+Claim Settlement Ratio
94.84%Digital Claim Settlement
YesUniversal Sompo
Cashless Garages
3500+Claim Settlement Ratio
96%Overnight Repair at prefered garages
YesReliance General
Cashless Garages
3800+Claim Settlement Ratio
98%Overnight Vehicle Repair
YesTata Aig
Cashless Garages
5000+Claim Settlement Ratio
91.80%Self Inspection
Live video streaming at selected workshopSahi Advice,
Sahi Insurance
Confused about which is the most appropriate plan that suits your needs as per your life stage? Don’t worry! Our IRDAI certified advisors will guide you at every step.
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Car Insurance Policy - Everything You Want to Know
The Basics of Car Insurance
Fundamentals of Buying a Car Insurance
All About Car Insurance Claims
The Steps for Buying a Car Insurance
Types of Car Insurance
Comprehensive Insurance
In addition to third-party liabilities, it also covers damages to your car from accidents, theft, natural disasters, etc.
Stand-alone third-party insurance (SATP)
It covers third-party liabilities like injuries, losses, or damages caused by your car. This is mandatory for driving in India.
Bundled plan
It includes stand-alone third-party cover for 3 years and own-damage cover for 1 year for new cars.
Stand-alone own-damage insurance (SAOD)
It only covers damages to your car. It can be bought separately or together with third-party insurance.
Long-term liability cover
It offers third-party coverage for 3 years for new private cars, as per IRDAI rules.
Pay-as-you-drive insurance
In this type of plan, costs depend on car type, usage time, distance, driving behaviour, and location.
Features and Benefits of Car Insurance
Easy plan purchase and renewals
You can opt for car insurance purchase and renewal online, from the comfort of your home. You can also opt for assistance from our certified insurance advisor at any point.
Keeps you legally compliant
Car insurance keeps you legally compliant according to the Indian Motor Tariff. It is mandatory to have at least a third-party car insurance policy to ply on the road, without which you can be charged a fine or imprisoned. The third-party insurance covers you against the legal liabilities that arise in case of loss/damage caused by the insured car to a third person’s body or property.
Flexibility of coverage
Choose from stand-alone third-party, comprehensive, or stand-alone own-damage cover for your car as per your need. If you choose own-damage cover or comprehensive cover, the damages to the insured’s car due to an accident, natural calamities, man-made disasters, fire, defacement, etc. are covered.
Customise and improve coverage
When you choose a comprehensive coverage or stand-alone own-damage cover, you can improve the coverage by choosing from the add-ons like engine protection, zero depreciation, consumables, key replacement etc.
No-claim bonus discounts
During the tenure of the car insurance, if no claims have been made, then the insured is eligible for a ‘no-claim bonus’ on renewal of the policy. Get a no-claim bonus benefit ranging between 20%-50%.
Other discounts
Get a discount for the installation of an anti-theft device, voluntary deductibles, and AAI membership.
Personal accident cover
Personal accident cover is mandatory under car insurance plans. PA cover with a car insurance policy will pay you for the compensation in case of bodily injuries, death, or any permanent disability arising due to an accident. However, if you already have a personal accident cover in your name, you can skip it.
Different insurers for different coverages
You can buy a standalone third-party cover, standalone own damage cover and comprehensive cover from different insurers.
Ease of switching companies during renewals
Every time the cover is renewed, you can switch insurance companies easily if you want.
Transparent claims process
The claim process is displayed at the time of policy purchase. Both cashless and reimbursement claim processes can be carried out smoothly.
Cashless repairs
You can select the network garages of your nearest location listed on the Mahindra Paybima website to avail of cashless claim benefits.
Easy reimbursement
Reimbursement refers wherein the insured pays for the repair cost and later can claim the bill from the insurance company.
Benefits of Car Insurance
Keeps you legally compliant
Car insurance keeps you legally compliant according to Indian Motor Tariff. It is mandatory to have at least a third-party car insurance policy to ply on the road, without which you can be charged a fine or imprisoned.
Covers you against third-party liability
This type of insurance covers you against the legal liabilities which arise in case of loss/damage caused by the insured vehicle to a third person’s body or property.
Covers you for your own-damage
Damages to the insured’s vehicle due to an accident, natural calamities, man-made disasters, fire, defacement, etc. are covered under stand-alone own-damage as well as comprehensive car insurance plans.
Personal accident cover
PA cover with a Car insurance policy will pay you for the compensation in case of bodily injuries, death, or any permanent disability arising due to an accident.
Enhanced coverage
You can enhance your coverage by choosing any add-ons like zero depreciation, engine protection, roadside assistance, etc.
No-claim bonus
During the tenure of the Car insurance, if no claims have been made, then the insured is eligible for a ‘no-claim bonus’ on renewal of the policy. Get a no-claim bonus benefit ranging between 20%-50%.
Other discounts
Get a discount for installation of anti-theft device, voluntary deductibles, and Automobile Association of India membership.
Cashless repairs
You can select the network garages of your nearest location listed on the Paybima website to avail cashless benefit.
Easy reimbursement
Reimbursement refers where the insured pays for the repair cost and later can claim the bill from the insurance company.
Simple Steps and Assistance for Buying a Car Insurance Plan
At Paybima, buying an insurance plan is easy and you can opt for an advisor’s help anytime.
Easy-to-follow Steps
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Car Insurance – Inclusions
What is covered in car insurance
Third-party plan
Any third-party injury, death or damage to property, which is a result of an accident involving the insured car.
Comprehensive plan
A comprehensive plan will also include damages/loss to the insured car in:
- Road accident
- Fire, explosion, or self-ignition.
- Loss of the insured car due to theft
- An act of terrorism, malicious act, riot or strike
- Natural disasters like earthquakes, landslides, floods, cyclones, or storms
- Transit by rail/ road, inland waterways, lift, elevator or air
Car Insurance – Exclusions
What is not covered in car insurance
Damages caused to the insured car if:
The driver was under the influence of alcohol
The insured car was involved in Illegal activities
The insured car was driven by a non-licensed driver
Consequential losses
Damage due to normal wear and tear of the car and its parts
If the driver deliberated an accident or attempted suicide
Add-ons in Car Insurance
Zero depreciation
Under zero depreciation add-on cover, the policyholder is not charged for depreciation during the claim settlement. If you purchase this cover, the insurance company will pay the full amount of the replaced part without any depreciation.
Consumables
Nuts, bolts, ball bearings, gearbox oil, grease, AC gas, lubricants clip, fuel filter, screw, washers etc. are consumables that undergo the most wear and tear. Getting them repaired is often an out-of-pocket expense unless you opt for this add-on.
Engine protection
Your engine is the heart of the car, but it is not covered in a comprehensive plan. With this add-on, the insurance company provides compensation for mechanical or electrical damages to the engine due to an oil spill or water ingression. It covers the gearbox, hydrostatic lock, etc.
Return to Invoice (RTI)
In case of a total loss/constructive total loss or theft, it covers the gap between the ‘insured declared value’ and the invoice value for purchasing a new car of the same make and model along with the registration and other applicable taxes.
Road Side Assistance (RSA)
With this add-on cover, at the time of emergency when you have been stranded in the middle of the road due to a breakdown, mishap or malfunction, you can avail of any of the round-the-clock services offered by the cover. A few of the assistance provided under the cover include a towing facility, jump start, fuel recharge, changing of tyres, etc.
Key replacement
If you lose both keys to your car, this add-on will cover the cost of replacing the lost keys with a duplicate set.
Tyre protection
With this add-on, the insurance company will cover the costs for any damages caused to your car’s tyres as in-tyre bulge, puncture or bursting of tyres, cut on a tyre due to an accident, etc.
New vehicle replacement
In case of total damage or loss of the insured car, this coverage provides you with money for a brand-new car of the same make and model.
Additional towing
Covers the towing expenses of the cars in case the car is immobilized or rendered unfit for driving and cannot be repaired on the spot of breakdown or accident.
NCB protection
This add-on helps you protect your no-claim bonus even after a claim is made. This coverage is especially necessary if you have a high NCB and you do not wish to let that go in case of a claim.
Personal belongings
If you lose your personal belongings that were in the insured car, the financial loss or damage suffered would be covered by this add-on.
Personal belongings
If you lose your personal belongings that were in the insured car, the financial loss or damage suffered would be covered by this add-on.
Battery protect for electric car
This cover pays for the repair or replacement of a damaged battery due to water ingress or submergence following a flood or inundation.
Electric car motor protect
The company will pay for repair or replacement expenses for the consequential loss or damage to internal parts of the electric motor, and in the case of a hybrid electric car, the differential and transmission units, water ingression, undercarriage damage, leakage of lubricating oil, will be covered.
Charger & cables
The add-on helps cover the expenses of damage to the chargers and cables due to over-voltage, fire, towing damage, etc.
EMI cover
If the insured car is in the garage for accidental repairs for a longer period of time, the insurance company pays the sum of the EMI due to the financial institutions on behalf of the insured (depending upon the coverage opted/selected).
Rim guard
A rim guard add-on compensates the insured car for any loss or damage to the wheel rims in an accident.
Loss of income/daily allowance
With this add-on, the insurance company will pay for the daily transport in case your car is out being repaired.
Emergency medical cover
In case the passengers of the car or the driver sustain any injuries during a road accident, this add-on covers the medical treatment expenses up to a certain limit.
How to Select the Best Car Insurance Plan
With so many options, selecting the right car insurance can be tough. It is important to choose a plan which addresses your needs and is financially viable.
Factors to consider while selecting a car insurance policy are mentioned below -
Factors to consider while selecting a Car insurance policy are mentioned below:
Right coverage
Car insurance companies in India offer mandatory stand-alone third-party, a stand-alone own-damage, or a comprehensive insurance plan. Based on your unique requirements, you can choose a coverage that suits your needs.
Add-on Cover
Add-on covers like zero depreciation, RSA, and engine protection are the additional coverage that is offered by an insurance company. Enhance the coverage of the policy by selecting them.
Claim settlement ratio
While buying a car insurance policy, you can choose an insurance company with a high claim settlement ratio.
Network garages
Look for a car insurance policy that offers access to many network garages. The network garages in your city and across the country help you avail of cashless claims.
No-claim bonus
During the tenure of the car insurance, if no claims have been made, then the insured is eligible for a no-claim bonus during the renewal of the policy. Get a no-claim bonus benefit ranging between 20%-50%.
IDV
IDV is the current market value of the car. It is the maximum amount for which the policyholder can raise a claim during the policy tenure. Check IDV vs the premium. A lower premium for a high IDV is value for money.
Additional discount
Also make sure you get the right discount for the installation of an anti-theft device, voluntary deductibles, and AAI membership.
Terms and conditions
It’s always important to read the fine print about the claim process, renewal process, and more before you finalise a car policy.
Factors Affecting the Premium of Car Insurance
When you look for the best car insurance in India, the premium is calculated based on various factors and parameters before the company fixes the car insurance price.
These are -
Car make and model
The policy premium depends upon the make, model, cubic capacity as well as variants.
Age of the car
The age of the motor vehicle is an important determining factor when it comes to calculating car insurance premiums online. The older the vehicle, the higher will be the depreciation on it.
Add-ons
A customized plan with add-ons like zero-depreciation or roadside assistance or engine protect cover gives better coverage at an affordable cost.
RTO location
Premiums are lower in low-traffic areas as compared to metro cities and accident-prone zones, where roads are busy 24*7.
Engine type
Premium will also depend upon the type of engine because depending upon the type whether it is petrol or diesel the IDV changes.
No-claim bonus
If you haven’t made a claim in the previous year, you can avail the benefit of no-claim bonus on your renewal premium.
IDV
IDV also impacts the premium - more IDV will result in more premium as the value of the vehicle will be higher.
Safety features
Anti-theft devices, GPS tracking, or car alarms can lower your premium.
Type of cover
Premiums depend on your coverage type. Third-party plans have the lowest premiums set by the IRDAI based on engine size. Comprehensive and own-damage plans' premiums vary by insurer.
Things to consider while buying Car insurance Online
Coverage
Select the coverage that is required as per your need and vehicle type. Choose either the mandatory stand-alone third-party and stand-alone own-damage or the comprehensive cover.
Add-ons
Check the add-ons available for additional cover to your Car policy.
Features
Check and compare the various features of different motor insurance policies, premium, special features, claim settlement ratio, network garages, and more.
Claim process
Also check if the claim process is simple or cumbersome so that you can easily make a claim whenever required.
Network garages
Also, check if the insurer offers enough cashless network garage facilities to avail cashless claims.
Premium calculation
See how the premium of the policy is calculated and seek a low premium.
How to Claim Car Insurance
The claim process for your car will depend on the type of claim you raise for own- damage and it is vital to follow these step-by-step procedures. As an insurance broker, we aim to provide you with comprehensive guidance and support throughout the process. Visit the Mahindra Paybima store near you or connect with your relationship manager or call the toll-free number 1800 267 67 67.
Furthermore, you can also incur a third-party claim.
The steps for all types of car insurance claims are given below:
Cashless Claim Process
Step 1
Immediate notification
Promptly inform your insurance provider about the accident or damage incurred by your car. Time is of the essence in reporting the incident.
Step 2
Authorised network garage
Take your car to the nearest network garage authorised by your insurer.
Step 3
Document submission
Submit the required documents, including the claim form, a copy of your insurance policy, driving license, and registration certificate Accurate and complete documentation expedites the claims process.
Step 4
Repair cost estimation and communication
The authorised network garage will thoroughly assess the damage and promptly share the repair estimate with the insurance company.
Step 5
Surveyor's assessment
The insurer will diligently review the claim and assign a surveyor if necessary. In some cases, a video survey may be conducted on their behalf, providing an efficient evaluation of the damage.
Step 6
Direct settlement
Upon claim approval and after due repairs, the insurer will settle the expenses directly with the network garage.
Step 7
Claim deductibles
You are required to pay the deductible or depreciation amount as per coverage taken in the insurance policy.
Step 8
Vehicle collection
After the repairs are completed and confirmation of the final insurance liability is received at the garage, you can collect your car, ensuring a seamless conclusion to the claim process.
Non-Cashless Claim Process (Reimbursement)
Step 1
Immediate notification
It is crucial to promptly inform your insurance provider about the accident or damage sustained by your car. Immediate reporting ensures a prompt assessment of the situation.
Step 2
Authorised garage
Take your car to the nearest authorised garage or workshop for repair.
Step 3
Repair cost estimation
Obtain an estimate of the repair cost from the authorized garage. This evaluation facilitates an accurate estimation of the financial aspects involved.
Step 4
Document submission
Submit the repair cost estimate, along with the required documents, such as the claim form, insurance policy copy, driving license, and registration certificate, to your insurer. Complete documentation ensures a smooth claims process.
Step 5
Surveyor's assessment
The insurance company will assign a surveyor to meticulously assess the damage and validate the claim.
Step 6
Approved claim and repairs
Once the claim is approved, you can proceed with the necessary repairs at the garage and ensure quality repairs.
Step 7
Payment and reimbursement
After the repairs are satisfactorily completed, make the payment to the garage and collect the invoices and receipts. Submit these documents to your insurer for reimbursement in a timely manner.
Claim Process: Vehicle Theft
Step 1
Immediate police notification
Without delay, inform the police and file an FIR (First Information Report). This formal report establishes the incident and is essential for initiating the investigation.
Step 2
Inform your insurance provider
Notify your insurance provider promptly about the theft and provide them with all the necessary details.
Step 3
Documentation submission
Submit a copy of the FIR, completed claim form, insurance policy copy and registration certificate to your insurance company. These documents form the foundation of your claim and facilitate a thorough evaluation.
Step 4
Surveyor's investigation
The insurer will assign a skilled investigation agency to investigate the theft claim. The investigator’s expertise ensures a comprehensive assessment of the circumstances surrounding the incident.
Step 5
Additional document submission
Upon claim approval, you will be required to provide additional documents, including the original keys, car documents, and any other relevant paperwork requested by your insurer. These documents support the claim verification process.
Step 6
Verification and settlement
The insurance company will conduct a diligent verification process to validate the claim.
Step 7
Final report & A-summary
If the car is not recovered within a 90-day period, the police authority will issue a final report and A-summary.
Step 8
Settlement
The insurer will settle the claim based on the insured declared value (IDV) of the car
Claim Process: Third-Party (TP)
Step 1
Immediate notification
Inform your insurance provider promptly about the accident involving a third party. Timely reporting allows for swift action and proper investigation.
Step 2
Gather relevant details
Collect all pertinent information about the third party involved, including their name, contact information, car details, and insurance particulars. These details facilitate effective communication and evaluation.
Step 3
File an FIR
It is compulsory to file an FIR in case of a third party. This legal document provides essential documentation of the incident.
Step 4
MACT court
Third-party claims must route through MACT court. The honourable court will decide the amount of compensation to the third party.
Step 5
Claim approval and legal representation MACT
Once the claim is lodged, your insurer will provide legal representation and handle the compensation process on your behalf.
Step 6
Compensation determination
The compensation amount will be determined based on the liability and in accordance with the provisions of the Motor Cars Act, 1988. This legal framework governs the calculation of compensation.
Step 7
Direct settlements
It is important to note that the insured should not settle any claim directly with the third party. Any such expenses are not authorised for reimbursement.
Documents for Claiming Car Insurance Policy
Car Insurance Claim - Key Reasons for Claim Rejections
If the insurer finds intentional damages to the car or a fraudulent claim, they can reject third-party or comprehensive cover.
If the driver was driving under the influence of alcohol when the car was damaged, the claim will be rejected.
Every policy has a specified time to notify the company about the accident, from 48 hours to 7 days - intimation beyond that can get your claim rejected.
If the driver has an invalid license, the car insurance company can reject the claim.
If the policy is expired your claim will get rejected.
When a personal car is used for commercial, the claim will get rejected, under violation of the T&Cs of car insurance.
Guaranteed Claim Support
We will guide you from start till end in your 'claim journey'. Start your claim process with us to get our support.
How to Buy and Renew Car Insurance Online and Offline
You can now buy and renew car insurance online in just a few simple steps, saving time and costs. You can visit the website of the insurance company or an aggregator website to buy a car insurance policy.
Share personal and car details
Input details like RTO details, and car details (brand, manufacturing year, car's model, fuel type, variant, and date of registration) to begin the policy procedure. For ‘renewing’ your policy when you have the car number (RC) for an existing car, you can share the car number and skip inputting all the car details. For renewal, you would also need to provide the previous policy details and ‘no-claim bonus’ details.
Browse policies
Check the various features of different car insurance policies, the premium, special features, claim settlement ratio, network garages, and more.
Choose coverage
Choose the coverage you need. You can choose just the mandatory third-party or a comprehensive or bundled plan.
Compare shortlisted policies
Once you’ve shortlisted 2-3 policies that suit your requirements, compare them online.
Select add-ons
Select the appropriate add-ons to the car insurance policy for additional cover.
Complete proposal form
Do a cKYC verification process, fill out the proposal form and upload the relevant documents if required as per the policy requirement.
Make payment
Pay for the policy online using credit/debit cards, UPI, wallets, or net banking.
Get the policy
The proposal is submitted to the insurance company for approval. Once approved, they’ll receive the policy by email.
Visit Paybima Store
You can visit the insurance company to buy the policy or find an insurance intermediator or broker providing car insurance plans. Paybima has stores to facilitate your insurance needs with our certified insurance advisors by your side. you can locate a Paybima store near you easily.
Benefits of Buying and Renewing Car Insurance Online
You can easily buy and renew car insurance online on our website and enjoy many benefits along the way:
It is a safe process
The fact that the online car insurance renewal process is safe and secure makes it the most significant aspect of car insurance policy renewal. Since all genuine insurance providers are regulated by IRDAI, you can be sure of the authenticity of the policy. So, getting your policy renewed from an authentic insurance company approved by IRDAI ensures the safety of your policy renewal.
Reasonable budget policies
Another benefit of buying or renewing your policy online is that you get to buy a policy at a reasonable budget that doesn’t make a hole in your pocket. Since insurers can save the cost of operation in the case of selling policies online, they offer online policies at a reasonable price. Moreover, the charges paid to the middlemen can also be avoided in online policies, which is why you get the advantage of reduced charges and premiums in online buying as compared to offline ways. In addition, the festive offers and discounts also allow insurers to offer a reduced price for their policies while selling them to the insured.
Easy to compare policies
Another benefit of buying/renewing car insurance online is that it allows you to compare different policies and buy the one that suits you best. This way, you can search for numerous alternatives and compare them before buying the most suitable option as per your needs.
Renew your car insurance policy very easily
With online purchase, you can simply renew your car insurance policy instantly by comparing quotes and selecting the one policy that you want for your car. You just need to submit the necessary details of your car and details of the previous insurance policy after choosing a policy. Now you can simply make the payment and purchase the policy in an instant.
Paperless experience
Also, unlike earlier reputed insurance companies these days have limited the option of clumsy paperwork that was required for buying insurance policies. Thus, it makes buying car insurance a smooth and hassle-free process with almost zero paperwork. All you need is to submit a few car details and choose the policy you want to purchase.
Renewal reminders
Also, if you buy your car insurance online you will receive timely reminders from your insurer before the expiry of your policy. This way you can renew your insurance without missing the deadline of policy expiration.
Add-on coverage
Add-on coverage is an option that you can receive with many insurers beyond the basic cover. These are known as add-on covers and an insured can buy them by paying an extra amount of payment. You can buy any number of add-on covers as per your requirement, the policy terms and conditions, and your insurance provider. Roadside assistance, zero depreciation, engine protection, etc. are some such covers.
No-Claim Bonus (NCB) discount
If you do not make a claim during a policy year, you get an NCB discount for such claim-less years. This discount can be transferred even if you change insurer during the time of renewal.
How to Compare Car Insurance Policies – the Factors
Look at certain factors when you compare vehicle insurance online to ensure you get the best deal and coverage.
Add-on covers
Look at the add-ons that enhance the coverage of your policy. These are usually available at an additional premium amount or included in the base plan.
Additional discounts
When you compare motor vehicle insurance online, look for plans that offer discounts for anti-theft device, AAI membership discount, GPS tracking device.
Insured declared value
IDV is an important parameter to consider while comparing Car insurance. This is the current market value of your vehicle. Compare and choose the IDV with higher benefits and affordable Premium.
Claim settlement ratio
The best way to determine the credibility of a company is to check its claim settlement ratio during your comparison.
Network garages
Look for a Car policy that offers access to many network garages. The listed network garages in your city and across the country help you avail of easy cashless claims.
Choose from India’s Top Insurers
Buy from India’s Top Insurers
Securing my car with car insurance plan provided by Paybima has been a game-changer. Their responsive customer service and hassle-free claims process make me feel truly protected on the road. Highly recommended!
I've been a proud customer of Paybima for my bike insurance. Their competitive rates and prompt assistance during an unfortunate incident proved they genuinely care about riders. Trustworthy and reliable!"
I bought this motor insurance for my bike last month and I am very satisfied with it. They have a comprehensive coverage that covers both third-party liability and own damage. They also have a fast and simple online renewal process, which saves me a lot of time and hassle. I think this is a great option for bike owners.
I am very happy with the service and coverage of my car insurance. They have a quick and hassle-free claim process, and the customer support from Paybima was very helpful and friendly. I would recommend this to anyone who owns a car and wants to protect it from any damage or theft.
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Ask Anything as We Have Answers to Everything in Car Insurance
A car insurance policy is mandatory as per the rules of the Motor Vehicles Act 1988. Thus, to legally drive your car in India, you need to have at least a third-party car insurance policy. Moreover, the policy will provide financial assistance in case of third-party property damages caused by your car in case of accidents. If an individual suffers an injury or dies due to the car, you can face considerable financial liability for the loss caused. The policy also covers this liability and gives you financial relief. Moreover, opting for a comprehensive car insurance policy will also help cover the damages suffered by your car in case of accidents or theft. Such policies pay for the car’s repair or compensate you financially in case of thefts.
It is always recommended to compare car insurance policies before making a purchase. Following are some of the reasons to do so:
- Get the best plan: There are a lot of car insurance policies available in the Indian insurance market. Each plan promises something better than the other. To know the difference between the different plans, you need to compare car insurance plans.
- Choose a higher IDV: IDV represents your car’s Insured Declared Value. This value reflects the market price of your car after being adjusted for depreciation. Different policies fix the IDV differently. That is why you see different IDVs offered for the same car. Ideally, you should opt for the highest possible IDV to maintain the value of your car.
- Get the best premium rates: Just like the IDV differs across different car insurance plans, the car insurance quotes vary. Needless to say, you would want the lowest possible premium for your car insurance policy. You can choose the best premium rate when you get to compare the different plans before you buy one.
- Get extensive coverage: The coverage features across different car insurance plans also vary. Some companies might have all the covers required for you, while others might not offer so. If you want your plan to have all-inclusive coverage, you should compare different plans and choose a plan that has the required coverage features at the best rates of premiums.
- Avail of higher discounts: Car insurance policies offer attractive rates of discounts, which help in reducing your premium outgo. To search for the highest rate of discounts, you have to compare car insurance policies online because different plans allow different discount rates.
- Get cashless garage service: Every car insurance company has a tie-up with several garages nationwide. However, it is always recommended to go for a company with an exhaustive network of such garages. When you compare car insurance policies online, you can compare which insurers have higher network garages available at your location.
To choose the best car insurance policy, you should compare the different plans available in the market. The online mode has eased the entire comparison process. While comparing, you should look at the following parameters to choose the best policy:
- IDV - The IDV of your car is its market value after deducting the age-based depreciation. IDV reduces every policy year as your car ages. You should choose the highest IDV to enjoy maximum coverage.
- Coverage features – Once you are done with the IDV of the policy, look at the coverage features promised under the plan. Try and opt for a plan that has all the coverage features built into it for the maximum scope of coverage.
- Premium rate – Since you would be paying the premiums out of your pockets, try and choose a plan that has the most reasonable premium rate. When comparing premiums, keep an eye out for the coverage features. Don’t skimp on the coverage to get a lower premium. The coverage vis-à -vis the premium should be balanced.
- Add-ons available – There are add-on covers in car insurance policies that provide great benefits. Look for the available add-ons to enhance the coverage of your policy.
- Discounts available – Car insurance plans allow premium discounts for various factors. Look for the maximum discounts to minimise premiums
- List of networked garages – You can get a cashless claim settlement if you get your car repaired at a networked garage. The best car insurance policy would be the one with the largest network of preferred garages.
Accessories not fitted by the car showroom are calculated separately from the Insured Declared Value. The insurance considers the cost price and depreciation rate.
Depreciation covers the following:
- Nylon/plastic parts, rubber parts, tubes and tyres, batteries, and airbags - 50%
- Fibreglass parts - 30%
- Parts made of glass – Nil
Yes, but only if the person driving the car has a valid driving license. However, the accidents specified under hazards in the policy are covered. If the owner was driving the vehicle, they are covered by the car insurance policy. When you choose or compare car insurance online, you must study the policy minutely to understand who is covered and who is not covered.
Yes, you can insure a car fitted with CNG using a bi-fuel system. The kit should have petrol/diesel or petrol/CNG. It will be insured at an additional premium of 4% on the original cost of the fuel kit. Make sure you specify the CNG system in the proposal form when you buy a car insurance policy online.
The insurance policy is valued at the car’s IDV, which decreases yearly. In case of a theft or total loss of the car, the compensation paid to the owner is the depreciated value of the car based on the age of the vehicle. This add-on ensures that the invoice value of the car is paid without factoring in depreciation. This cover might be available for cars up to the age of 3 years as per the underwriting policy of the insurance company.
During heavy rains, driving your car through flooded roads can lead to engine and transmission box seizures due to water ingression. Repairing such damages can be a very costly affair. This cover will compensate for damages caused to the engine and gearbox due to rain or flood. It also covers damage caused to the engine by leakage of lubricant or coolant due to accidents. The insurer will pay for the repair and replacement of all the internal parts and compensate for the labour costs involved, costs of lubricants or consumables required to undertake the repairs. This cover can be opted for cars up to 3 years of age.
Premium is the amount that you pay to the insurance company for the coverage that the insurer is allowing under its car insurance policy. The insurance company covers specific financial risks, and to cover your risks, you have to pay a premium for the policy annually. The premium payable on a car depends on:
- Type of vehicle
- Age of vehicle
- Period of coverage (1 year or 3 years bundled cover for a new car)
- Add-on covers opted t
- Any applicable discounts/loadings, as per the underwriting rules of the insurer, in case of break-in cases
You can pay premiums online through one of the various modes of payment offered by insurance companies. Once you have shortlisted a car insurance plan and filled out the proposal form, you will be redirected to the payment page of the insurance company. You can then pay through credit or debit cards, net banking, wallets or UPI.
Yes, you would be required to pay the premium again. However, you can avail the benefit of the no-claim bonus offered by your insurance company. Through this benefit, you can get a discount of up to 55% on the own-damage component of your insurance premium depending on the number of claim-free years and the insurance company’s policy.
If the vehicle is modified for a specially abled person, typically, a discount of 50% is offered. The discount is applicable on the own-damage component premium for such modifications. It is also available for institutions engaged with the specially abled in their operations.
Yes, discounts are offered to members of accredited automobile associations. The policy may allow up to a 5% discount on the premium but not exceeding Rs. 200. While discussing the car insurance policy with the insurance company, you should get clarity on the associations that are covered.
Yes, if you install an ARA-approved anti-theft alarm or locking system, you get a discount. It is covered under the own-damage (OD) of the car insurance policy. You can check out and compare car insurance quotes online for further information.
The Automotive Research Association of India, or ARAI, is the body that approves anti-theft and locking systems for vehicles. If a vehicle is installed with such devices, the car insurance companies offer a certain discount on the OD.
The insured will have to bear the following charges:
- The amount of depreciation as per the rate prescribed in case zero depreciation cover is not availed
- The reasonable value of the salvage
- Compulsory and voluntary deductions under the policy if the insured has opted for it.
A car insurance policy claim made during the policy period affects the NCB (no-claim bonus) insurance companies offer upon renewal. The more claims you make, the higher the premium you will pay. Calculate the premiums versus the claims before opting for an insurance policy.
The insurance company can deny your claims in various instances. If you claim an excluded coverage, the claim will be denied. If the claim process is not properly followed and you do not submit the required documents, the claim will be denied. The insurance company always denies fraudulent claims. Moreover, if your car insurance policy has expired and you did not renew it, any claims made on the policy would be denied if the event occurred after the policy expiry date.
