In Indian culture, buying a new car creates excitement in the whole family. It means a lot of happiness, fruitfulness and the beginning of those tours that you have been planning with your family in your new car. In the excitement of a new car, people are often unaware that buying a new car is not just fun, it’s a big responsibility.
If you analyze carefully, you will realize that owning a car or buying a new car is a matter of great responsibility as we need to make sure that we do not hit anyone from our car while driving. In the event that we do so, we must have adequate insurance coverage for our car and the third party to ensure compensation.

Not only is it our responsibility to have auto insurance, but it is also required by law to have third party liability insurance under the Motor Vehicles Act. There are several insurance providers available in the market, offering different types of car insurance policies, but we need to consider the most suitable plan for us. To buy the right auto insurance, we need to shop around before deciding which policy to buy. For which there are few things that we must take into account:

Pre-select your requirement – ​​Before you buy car insurance, it is very important that you first decide what you need in your car insurance policy. Simply make a list of the type of coverage you are looking for in a policy, such as TPL, IDV, add-ons, etc.

Coverage comparison: Once you’ve finished shortlisting your requirements, compare policies online. In addition, the type of coverage offered in a third party liability is different from that of an all risk policy. The liability only covers any loss and damage caused to a third party, while the comprehensive policy offers you total coverage that includes TPL, vehicle damage and personal accident. Therefore, it is advisable to thoroughly compare car insurance policies before buying.

Compare IDV: Premium rates are based on the IDV (Insured Declared Value) of the car, which means the current value of your car after a stated depreciation. The IDV of a car depends on the age of your vehicle, the older the car, the higher the premium.

Premium: Another important factor in choosing the right auto insurance policy is the policy premium you must pay to the insurer. You may find that some of the car insurance policies are available at very competitive prices, but a low premium does not mean that it is a better policy. You should compare the features and benefits of the policy before making a final decision. If you get better coverage by paying some extra cost and it is really worth it for you, you should go for the same. Keep in mind that car insurance premium is always determined by multiple factors such as model, age, vehicle type, capacity, fuel type, etc.

Compare the CSR of the insurer: Always compare the CSR of the insurance company from where you plan to buy a policy for your car. You should buy a policy from that provider whose claims settlement ratio (CSR) is good. Don’t buy a policy from a company with a low claims settlement rate. Each year the IRDA publishes a detailed Claims Settlement Rate Report, which you can easily obtain on the IRDA website.