Best Car Insurance Plans In India

When we buy something, we want the best, don’t we? We compare the features and benefits of the product we are buying, its brand value, the comparative price, and the quality and then settle on one. Even when it comes to buying a car insurance policy, we want the best car insurance plan. While wanting the best car insurance plan is good, more often than not, we don’t know how to select the best plan. Do you know which one is the best car insurance plan in India?

Car Insurance

A car insurance plan is a legally mandatory cover, one which we cannot avoid. As such, buying the best car insurance policy is essential. The plan would not only give you the best coverage, it would also be helpful at the time of a claim. Here are some factors which you should look for to buy the best car insurance plan –

  • The coverage provided by the plan

All comprehensive car insurance policies cover third party legal liability and damage faced by your car and you. However, some plans also include various additional coverage features which make the plan more comprehensive. Some of the additional coverage features include:

  • A complimentary 24*7 roadside assistance which is helpful in case your car breaks down.
  • An inbuilt coverage for co-passengers
  • Warranty on repairs done on the damaged car, etc.

Needless to say, a policy which provides the maximum coverage benefits would be the best.

  • The Claim Settlement Ratio of the company

You realize the full potential of your car insurance policy when a claim is made. The Claim Settlement Ratio of the insurance company is a measure of the company’s claim settlement history. It is the number of claims it has settled against the total number of claims raised in a period. Higher the ratio, the better are the chances of getting your claim settled. The best car insurance policy would, therefore, be offered by the company which has the highest Claim Settlement Ratio.

  • A quicker claim settlement process

We all want an easy and hassle-free claim settlement process. The policy that has a faster TAT (Turn Around Time) in case of claim settlement is ideally the best car insurance policy. When selecting a car insurance plan, always look for a plan which has the easiest claim settlement process and responds to your claim intimation the fastest. The insurance company should also have tie-ups with a large number of garages across India so that you can avail cashless claim settlement facility.

  • The discounts offered

Wouldn’t you like to save on your car insurance premium payments? There are different types of discounts offered by car insurance companies to help you lower your premium outgo. Some popular types of discounts available are:

  • Age and profession discount
  • Discount for installing anti-theft devices
  • Discount for being a member of the Automobiles Association of India
  • Discount for choosing a higher deductible limit, etc.

The best policy would, obviously, be the one which promises the maximum discount.

  • Easy application process

The online medium has made buying or renewing a car insurance policy a breeze. You can consult an online web aggregator or an online broker (for expert knowledge) and shortlist the best car insurance plan from the ones available. The policy should have an easy application process, allowing you to apply and avail the policy online itself. This would cut down the need of documentation and would also be convenient for you.

  • The IDV and the rate of premium

The Insured Declared Value of your car is the current value of your car post depreciation. It represents the maximum coverage provided by the plan. Your car’s IDV decreases every year and varies across different plans. When comparing the different plans, look for the plan which offers you the highest IDV. A high IDV is better as it reflects your car’s valuation.

Moreover, the premium of the best car insurance policy should be proportionate to the IDV offered. If you select a higher IDV, the premium would also increase. So, when choosing the best car insurance plan, select the best combination of the IDV and the premium. Don’t judge only the IDV or the premium independently.

If you look for these points when comparing car insurance plans, you can find the best plan. The plan would give you the best coverage at the lowest possible rate.  Some leading insurers offering the best car insurance plans include Bharti AXA, Bajaj Allianz, HDFC Ergo, TATA AIG, etc. You can pick any plan from these insurers and get a good coverage at a competitive rate. So, whatever you do, compare and find the best car insurance plan for your needs.

Wilfred Hawkins

Learn More →