There are many car insurance policies available online, and sometimes it can seem too difficult to make the right choice.
Third party insurance is mandatory under the Motor Vehicles Act, 1988, but many car owners prefer comprehensive car insurance. Due to its wider coverage factor, you receive sufficient coverage for the mandatory minimum while also protecting your own car against theft, natural disasters, and damage resulting from an accident.
With multiple options available today, it is important to understand your needs and requirements. If you are going to buy car insurance online, here are some helpful points to consider when choosing the right comprehensive plan for your car.
Understanding Comprehensive Car Insurance
Before discussing how to choose your policy, it’s important to know what comprehensive car insurance means.
A comprehensive car insurance policy is a full-coverage policy for your car, which means it protects it from a variety of different risks. Not only does it cover third-party liabilities, but it also covers:
- Accidental damage
- Theft and burglary
- Fire, explosion or self-ignition
- Natural disasters like floods, cyclones, and earthquakes
- Man-made disasters such as riots, strikes, and vandalism
- Transit damage (road, rail, air, or inland waterways)
It also includes personal accident cover for the owner-driver and offers a number of add-ons to customise your plan.
Why Choose Comprehensive Car Insurance?
A third-party policy is legally required, but it only protects the interests of others involved during a mishap. It won’t help if your own car is damaged in an accident, fire, flood, or theft. That’s why going for a comprehensive car insurance policy is a smarter choice, especially when your car is a significant investment.
Let’s say you bought a new sedan in Mumbai and insured it with a basic third-party plan. Six months later, during monsoon, your car gets flooded, and the engine is severely damaged.
If you had comprehensive car insurance with an engine protection add-on, the insurer would have covered most of the repair cost. Without it, you’d be left with a hefty repair bill and regret.
Having a comprehensive car insurance plan from reputed insurers like TATA AIG General Insurance Company Limited will also help you access cashless claims at 7500+ network garages. So, all you get is to enjoy tons of benefits and peace of mind!
Steps to Choose the Right Comprehensive Car Insurance Plan
1. Understand your requirements
Begin by asking yourself:
- Do you drive daily or occasionally?
- Do you live in a flood-prone or accident-prone zone?
- Do you park in public areas frequently?
- Do you have a new or used car?
Your answers will help you understand what level of coverage you need and which add-ons you might require, such as engine protect or zero depreciation.
2. Evaluate the Insured Declared Value (IDV)
The IDV is the maximum amount you can claim if your car is stolen or damaged beyond repair. It is calculated based on the manufacturer’s listed selling price, adjusted for depreciation based on the age of the vehicle.
Here’s a quick breakdown from the policy:
| Age of the Vehicle | % of Depreciation |
| Not exceeding 6 months | NIL |
| 6 months – 1 year | 5% |
| 1 – 2 years | 15% |
| 2 – 3 years | 20% |
| 3 – 4 years | 30% |
| 4 – 5 years | 40% |
| Beyond 10 years | 50% |
Choosing a higher IDV increases your premium but ensures better compensation in case of a total loss.
3. Look for Must-Have Add-ons
Customising your comprehensive car insurance with the right add-ons can provide greater value. Some helpful ones include:
- Zero Depreciation Cover: Ensures full value during claims without depreciation deductions.
- Return to Invoice Cover: Reimburses the difference between your car’s IDV and its purchase price.
- No Claim Bonus Protection: Keeps your NCB intact even after one claim in a year.
- Roadside Assistance: Helps you during emergencies like breakdowns or flat tyres.
- Engine Secure: Covers engine damage due to water ingression or oil leakage.
- Consumables Cover: Pays for small but essential items like engine oil, nuts, bolts, etc.
These are especially useful if you have a new car, live in extreme weather zones, or are new to driving.
4. Review Exclusions Carefully
Even the best comprehensive car insurance plans have their limitations. You should be aware that the following are not covered:
- Damage due to driving without a valid licence or under the influence of alcohol/drugs
- Regular wear and tear or mechanical failures
- Damage outside the geographical area of coverage (like driving outside India)
- Loss during illegal racing or reckless driving
- Damage when the car is used commercially under a private insurance plan
Understanding exclusions ensures you don’t face unexpected claim rejections.
5. Compare Plans Online Before You Buy
You can buy car insurance online easily these days, but make sure you compare plans first. Key factors to check include:
- Premium amount vs coverage offered
- Inclusion of add-ons and flexibility to customise
- Claim settlement ratio
- Garage network and service support
A trusted provider like TATA AIG General Insurance Company Limited will let you review options transparently before making a decision.
6. Consider the Claim Process and Customer Support
Check how fast and simple the claims process is. You will need to call your insurer as soon as possible if you have faced:
- An Accidents
- Theft (within 48 hours, with police FIR)
- Any potential claim situation
Fast help and a simple claims process can truly make an immediate difference when you need help. They even offer up to Rs. 1,500 for towing your vehicle in case of accidents, and allow small repairs (under Rs. 500) without prior approval.
7. Don’t Forget about No Claim Bonus (NCB)
If you do not lodge a claim during a policy year, you get a reduction in the next year’s premium. Here’s how NCB benefits work:
- 1 year: 20%
- 2 years: 25%
- 3 years: 35%
- 4 years: 45%
- 5 years: 50%
Maintaining a no-claim record can help you buy car insurance online at reduced rates over time.
Picking the correct comprehensive car insurance plan isn’t just about covering your legal requirement. It’s about protecting your asset and ensuring that you’re not caught short, either financially or mentally.
Whether you’re a first-time buyer or renewing, you should always check your cover and understand what it is you’re being offered. And, after weighing your options, buy car insurance online that best meets your needs.
So go ahead, drive your dreams, and let your insurance sit beside you.
Standard T&C Apply
Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.
Claims are subject to terms and conditions set forth under the motor insurance policy.
All savings are provided by the insurer as per the IRDAI-approved insurance plan.
