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Business News/ Brand Stories / A comprehensive guide to choosing the right car insurance policy

A comprehensive guide to choosing the right car insurance policy

Here is quick guide on the key factors you must consider when selecting a suitable insurance policy for your car

Selecting the right car insurance policy can be challenging. Premium
Selecting the right car insurance policy can be challenging.

When it comes to insuring your car, making the right choice is important. Apart from offering financial security in case of accidents or contingencies, car insurance is also a legal requirement. And with a diversified insurance market that offers a variety of options, selecting the right car insurance policy can be challenging. Here is quick guide on the key factors you must consider when selecting a suitable insurance policy for your car:

Understand your needs

Before exploring insurance policies, it is important to assess your needs. Consider factors such as the type of car you own, your driving habits, your budget, and the level of coverage you require. If you have a new or a luxury car, go for a comprehensive coverage that offers own damage and third-party cover. If your car is older or has a lower value, a third-party insurance policy might be enough. You can also opt for a Pay as you Drive insurance if you do not drive frequently. It gives you coverage based on your mileage and usage; hence, the premium is also low.

Research various insurance providers

Insurance policies can vary significantly from one provider to another. Do a thorough research to understand the reputation, financial stability, customer service, and claims processing efficiency of insurance companies. For easy and one-stop access, you can compare car insurance policies on Bajaj Finance Insurance Mall. Here you will find various car insurance policies at affordable price range offered by top motor insurance companies in India. 

Coverage options

Different insurance policies offer varying coverage options. For example, a third-party car insurance is the most basic and legally mandated insurance in India. It covers only the damages caused by your vehicle to a third party, their vehicle or property. On the other hand, a comprehensive car insurance policy covers damages caused to third party as well as to your own vehicle. You also have the option to avail add-on covers as required on a comprehensive car insurance policy. Similarly, own-damage insurance gives coverage only for the damages caused to the insured vehicle but doesn’t provide third party coverage. In addition to this, most insurance companies offer personal accident cover for owner-driver. So, you must check the scope of coverages offered in the insurance policy while choosing one.

Cost of insurance

The cost of insurance is a significant factor that directly impacts your budget. Compare premiums of different car insurance policies by different insurance providers and choose a policy that offers adequate coverage at a reasonable price. 


Many insurance companies include deductibles in their policy terms and conditions. You have the option to choose the percentage of deductible amount that you can afford. Deductibles can affect your insurance premiums. The higher the deductibles opted, the lower the premium, and vice-a-versa. However, you must choose a deductible amount based on your budget, as this the amount you will have to pay when settling the claims. For example, if your car insurance policy offers a coverage up to Rs. 5 lakh and you have chosen a deductible amount of Rs. 1 lakh, they the insurer will pay only up to Rs. 4 lakh. The remaining Rs. 1 lakh you have to pay.

No-claim bonus (NCB)

Most insurance providers offer a No Claim Bonus as a reward for not making claims during a policy year. This can significantly reduce your premium during policy renewals. Therefore, you must check if the insurance policy you're considering offers a No Claim Bonus.

Add-ons and special features

Insurance providers often offer add-ons such as roadside assistance cover, engine protection cover, return to invoice cover and more that enhance your coverage. Evaluate these options carefully and determine if they align with your needs. You must also note that add-on covers come at an additional price.

Customer service and claim settlement

A good insurance company not only provides comprehensive coverage but also has an efficient and customer-friendly claim settlement process. Look for the company’s claim settlement ratio and reviews related to claim experiences to ensure you choose an insurer that delivers on its promises.

Policy terms and conditions

Read the policy terms and conditions carefully to understand the policy inclusions and exclusions. This part of the document explains you in detail about the coverages offered and expenses that are not covered. Know all the limitations, restrictions, or conditions that may apply to your policy.

Choosing the right insurance policy for your car is essential. You can visit Bajaj Finance Insurance Mall and compare different insurance plans provided by leading insurance providers. Here, you can check the details of different car insurance policies and select the one that best suits your needs and budget.

Disclaimer : *T&C Apply. Bajaj Finance Limited (‘BFL’) is a registered corporate agent of third party insurance products of Bajaj Allianz Life Insurance Company Limited, HDFC Life Insurance Company Limited, Future Generali Life Insurance Company Limited, Bajaj Allianz General Insurance Company Limited, SBI General Insurance Company Limited, ACKO General Insurance Limited, ICICI Lombard General Insurance Company Limited, HDFC ERGO General Insurance Company Limited, Tata AIG General Insurance Company Limited, Niva Bupa Health Insurance Company Limited , Aditya Birla Health Insurance Company Limited, Manipal Cigna Health Insurance Company Limited and Care Health Insurance Company Limited under the IRDAI composite CA registration number CA0101. Please note that, BFL does not underwrite the risk or act as an insurer. Your purchase of an insurance product is purely on a voluntary basis after your exercise of an independent due diligence on the suitability, viability of any insurance product. Any decision to purchase insurance product is solely at your own risk and responsibility and BFL shall not be liable for any loss or damage that any person may suffer, whether directly or indirectly. Please refer insurer's website for Policy Wordings. For more details on risk factors, terms and conditions and exclusions please read the product sales brochure carefully before concluding a sale. URN No. BFL/Advt./23-24/194

Disclaimer: This article is a paid publication and does not have journalistic/editorial involvement of Hindustan Times. Hindustan Times does not endorse/subscribe to the content(s) of the article/advertisement and/or view(s) expressed herein. Hindustan Times shall not in any manner, be responsible and/or liable in any manner whatsoever for all that is stated in the article and/or also with regard to the view(s), opinion(s), announcement(s), declaration(s), affirmation(s) etc., stated/featured in the same. This information does not constitute a financial advice.

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Published: 19 Oct 2023, 08:08 PM IST
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