What to Look for When Selecting an Auto Insurance Policy in India

Auto insurance is mandatory in India for all vehicles. It is important to have the right insurance policy to protect your vehicle from damage, theft, and other unforeseen events. Here are some factors to keep in mind when selecting an auto insurance policy in India.

Type of Policy

There are two types of auto insurance policies in India – third-party liability insurance and comprehensive insurance.

• Third-party liability insurance covers damages and losses caused to a third-party due to an accident involving your vehicle. This policy does not cover damages to your own vehicle.
• Comprehensive insurance covers damages to both third-party and your own vehicle, as well as theft, fire, and other unforeseen events.

It is important to choose the right type of policy based on your needs and budget.

Sum Insured

Sum insured is the maximum amount of money that the insurance company will pay in case of a claim. The sum insured should be sufficient to cover the cost of repairing or replacing the vehicle in case of damage or theft. It is important to choose a sum insured that is appropriate for your vehicle.

Premium

Premium is the amount of money that you pay to the insurance company for the policy. The premium amount depends on various factors such as the type of policy, sum insured, age of the vehicle, and your driving history. It is important to choose a policy with a premium that is affordable and within your budget.

Add-On Covers

Add-on covers are additional benefits that can be purchased along with the basic policy. Some common add-on covers include zero depreciation cover, engine protection cover, and roadside assistance cover. It is important to choose add-on covers based on your needs and budget.

Network Garages

Insurance companies have tie-ups with network garages where you can get cashless repairs for your vehicle. It is important to choose a policy with a wide network of garages in your area to ensure easy and hassle-free repairs in case of damage.

Claim Settlement Ratio

Claim settlement ratio is the percentage of claims that are settled by the insurance company. It is important to choose a policy from an insurance company with a high claim settlement ratio to ensure quick and hassle-free settlement of claims.

In conclusion, selecting the right auto insurance policy in India involves considering various factors such as the type of policy, sum insured, premium, add-on covers, network garages, and claim settlement ratio. It is important to choose a policy that provides adequate coverage and meets your needs and budget.