Best Car Insurance Policy in India 2024

Summary

This video provides a comprehensive guide to understanding car insurance, covering key aspects such as types of policies (Third-Party vs. Comprehensive), essential add-ons (Return to Invoice, Zero Depreciation, Consumables, and Roadside Assistance), and how to choose the best provider in 2024. It explains the benefits of various add-ons, how to assess insurance companies based on Claim Settlement Ratios and network of garages, and provides insights on how to select the right policy based on individual needs. The video is designed to clear up confusion and help viewers make informed decisions when buying or renewing car insurance.

Takeaways

• 😀 Car insurance is often misunderstood, and people tend to accept the insurance provided by dealers without much consideration.
• 😀 There are two main types of car insurance: Third-party and Comprehensive. Third-party covers damages to others, while Comprehensive covers both third-party and your own vehicle.
• 😀 Comprehensive insurance is generally better but comes with a higher premium compared to third-party insurance.
• 😀 Add-on covers are essential in car insurance. One of the most recommended is Return to Invoice (RTI), which ensures you get the original invoice price if your car is damaged or stolen.
• 😀 If RTI cover isn't included, you will receive the Insured Declared Value (IDV), which is usually less than the original price, especially after applying depreciation.
• 😀 For cars older than 3 years, depreciation is applied to the ex-showroom price, reducing the IDV significantly (e.g., 40% depreciation for 3-4-year-old cars).
• 😀 Zero Depreciation cover ensures that you receive the full amount for repairs without depreciation deductions, but it increases the premium by 15-20%.
• 😀 Consumables coverage, which includes items like nuts, bolts, bearings, and AC coolant, is affordable and important as these parts are often the most impacted during damage.
• 😀 Roadside Assistance is another useful add-on. Many credit cards offer free roadside assistance, which could save you the additional insurance cost.
• 😀 When choosing an insurance company, the Claim Settlement Ratio (CSR) and the network of garages are key factors to consider for a smooth claim process.

Q & A

What are the two main types of car insurance?

The two main types of car insurance are Third-Party Insurance and Comprehensive Insurance. Third-Party Insurance covers damages to a third party, while Comprehensive Insurance covers both third-party damages and damages to your own vehicle.

What is the difference between Third-Party Insurance and Comprehensive Insurance?

Third-Party Insurance covers damages caused to a third party (like another vehicle or person) but does not cover damage to your own vehicle. In contrast, Comprehensive Insurance covers both third-party damages and damage to your own car, offering better protection.

What is Return to Invoice (RTI) Cover, and why is it important?

Return to Invoice (RTI) Cover ensures that if your car is severely damaged or stolen, you get the original invoice value of the car (including insurance and registration costs). Without RTI, you only receive the Insured Declared Value (IDV), which may be lower than the original invoice.

How does Zero Depreciation Cover work in car insurance?

Zero Depreciation Cover ensures that you receive the full cost of repairs without any deductions for depreciation. This add-on is highly recommended for cars under 5 years old, as it helps you avoid losing money due to depreciation when making claims.

What is Consumables Cover in car insurance?

Consumables Cover includes parts like nuts, bolts, grease, and coolant that are often required during repairs. This cover is typically inexpensive but can save you a significant amount in case of damage, as these parts are commonly affected during accidents.

What is Roadside Assistance, and how does it benefit car owners?

Roadside Assistance provides help in case your car breaks down on the road. This service typically covers repairs, fuel delivery, and towing. Some credit cards even offer free Roadside Assistance, making it a useful and cost-effective option.

How should you choose the right insurance provider?

When choosing an insurance provider, consider factors like the Claim Settlement Ratio (CSR), network of authorized garages for cashless claims, customer reviews, and the company's financial health. A good CSR and extensive garage network ensure smoother claim processing.

What is the Claim Settlement Ratio (CSR), and why is it important?

Claim Settlement Ratio (CSR) is the ratio of claims paid by an insurance company to the total number of claims made. A higher CSR indicates that the company is more reliable in settling claims, which is crucial when choosing an insurer.

How does the Insured Declared Value (IDV) affect your car insurance policy?

The Insured Declared Value (IDV) is the maximum sum an insurer will pay for a total loss or theft of your car. It is calculated based on the car's current market value, but if you opt for RTI Cover, you would receive the original invoice value of the car instead of the IDV.

What should you check when renewing your car insurance?

When renewing your car insurance, review the premium amount, coverage, and add-ons. Also, check your claim history and whether you're eligible for a No-Claim Bonus. Comparing different policies can help you find a better deal.