5 things to look for when looking for Car Insurance Companies in India


Unlike other types of insurance, a car insurance is compulsory by law in India. If you own a car, you need to have a valid 3rd party motor insurance. But with so many insurance providers available in India, how will you pick the best? To make things easier for you, we have a list of things to do when looking for Car Insurance Companies in India.

 If you own a car, it is compulsory for you to have a valid 3rd party motor insurance as per the Motor Vehicle Act of 1988. While this 3rd party insurance only covers damages to the 3rd party, you also have the option of going for a comprehensive policy which covers damage or loss caused to your vehicle along with the damages caused to the 3rd party.

Moreover, the insurance providers in India also offer a host of add-on covers for making the coverage more effective. But with so many insurance providers available in India, how will you select the best? To eliminate the confusion, we have listed five things that you should look for when selecting an insurance company for your car.

  1. Cashless Network of Service Stations

One of the first things you need to check while selecting the best among many car insurance companies in India is the network of service stations the company has where you can get cashless facilities.

  1. Claim Settling Ratio

What good is an insurance provider if it does not settle your claims at the time of accidental repairs. To ensure the company is good, have a look at its claim settlement ratio. Anything above 85% is good, and anything above 90% is excellent. Also, see how soon they guarantee to settle the claim. This could usually range from three days to seven days.

  1. Facilities offered:

Car Insurance companies these days offer various features to allure their customers. Look for amenities proposed before selecting a company. Some offer free towing service at the time of the accident. This may be a useful feature especially in the times of distress.

  1. Insurance Premium

Needless to say, the insurance premium is the most important thing on your mind when evaluating insurance companies. However, do not just go for the company that offers the lowest premium. Dig deeper and find out how they have calculated the premiums. The premiums may depend on largely three factors; discounts offered, personal accident cover, and most importantly, IDV of the vehicle. Many companies might reduce the insured declared value or IDV of the car, which reduces the premium. However, this affects you when you take the claim from the company and the also the resale value of the car. Thus, it may not be a good idea to reduce the IDV of your car. Also, find out the Excess Amount in the insurance. The excess amount is the amount that the company deducts before settling the claims.

  1. Ratings, Recognitions, and Awards:

The last but important thing on your checklist should be looking at awards, ratings, and recognitions received by the insurance company. Look for credible ratings and awards which could speak volumes about the company you intend to deal with. After all, you would want a good insurance company.

If you are looking for a car insurance, use the tips mentioned above, and you are sure to buy a policy with the best cover and a number of additional features.