We know the importance of purchasing car insurance so we should not delay purchasing one for our car. It not only provides coverage against damage or loss but also gives peace of mind. Policy premium and coverage can be important factors in deciding the policy. The policy premium can be a function of a lot of parameters; some of them are given in the chart below.
Let us know each of the above in brief –
- Car and its features: a luxury car would have a higher policy premium than a normal car. Further, car insurance policy of a diesel car would be higher than a petrol car of the same make and car model.
- Date of purchase and availability of spares: As we know that value of car keeps decreasing each year, so a car insurance policy would be higher in the initial years. Also, considering a car that could have limited availability of spares, the insurance cost would increase.
- Type of policy: policy premiums will vary on the type of policy- zero depreciation policy, comprehensive policy, and a third-party policy. There are some insurers offering riders at extra cost for additional coverage. If one is using a car very rarely, then a third party insurance can also work and one can save on premiums.
- Claim history or challans on the car: if we do not avail claim on our vehicle, our no claim bonus (NCB) gets accrued each year by a certain percentage to a maximum of 50%. As per directions by Insurance Regulatory and Development Authority (IRDA), each year this NCB gets adjusted in our policy premiums. It is not advisable to take small claims on your policy. By doing so, we forego the NCB on our policy and increase our next year premium. The insurance policy premium is also driven by driving history and challans on the vehicle.
- Extent of deductibles: the amount associated with deductibles needs to be paid by the policy holder at the time of taking a claim. Keeping this amount high can reduce the policy premium but increase the burden on policy holder at the time of taking a claim.
Now that we know the broad parameters in pricing a policy, we will look at the 5 best and cheapest car insurance policies in the market today. While there is a large overlap on the offerings, but there are some unique features too for each of them.
- Royal Sundaram car shield plan:
The unique offerings by the insurer are captured below
- Free road-side assistance
- Choice of riders/ add-ons to customize the policy as per need and requirement. One such add-on offers 100% purchase price in case of theft of car or total loss.
- Tie-up with over 4600 garages to process cashless claims.
2. Tata AIG car insurance policy:
The unique offerings by the insurer are captured below
- Choice of add-ons to increase the coverage as per need and requirement
- Low and affordable premiums
- 24×7 assistance in case of claims
3. Universal Sompo car insurance policy:
The unique offerings by the insurer are captured below
- 24×7 assistance in case of claims
- Cashless claims at network garages across India
- Choice of riders/ add-ons to customize the policy as per need and requirement
4. United India car insurance policy:
The unique offerings by the insurer are captured below
- Cashless claims as network garages
- Option of getting lapsed plans revived
- Comprehensive road-side assistance.
- Choice of riders/ add-ons to customize the policy as per need and requirement
5. Future Generali (Hello Zindagi) car insurance policy:
The unique offerings by the insurer are given below
- Network of garages to process cashless claims
- Road-side assistance
- Choice of riders/ add-ons making the policy customizable to customer’s requirement
- Quick issue of policy and faster claim processing
In a nutshell:
*You can avoid the add-ons on roadside assistance if we take our car to road trips and forego engine protect if we are not bothered by monsoons or waterlogging in the areas where you plan to drive the car
