How to choose the right kind of car insurance

August 23, 2022
By Advocate Chikirsha Mohanty

The insurance sector is replete with numerous comprehensive car insurance. This creates a problem in deciding among the best option. With constant development in the Indian automotive industry, there have been a considerable number of schemes and policies launched by the concerned insurance unions.

A car insurance policy covers the expenses of the damages or the theft in accordance with the type of scheme opted by an individual. As per the law, a car insurance policy is mandatory for every model, be it new or used. Such a policy at least ensures to cover the minimum damage, which can be caused to one's own car or other vehicles in case of collision.


Important considerations before choosing an Insurance

Which insurance cover to choose?

A car insurance cover is a great security cover to have in the case of an accident and other mishaps like theft, riots, vandalism, broken windscreens, etc. Damage caused due to unforeseen acts like an earthquake, flood, falling trees, etc. is also covered. In the case of third-party insurance, any legal liability arising from damage caused by your car is also covered. These include bodily injury, death, or damage to third-party property.

Add on covers

Add-on covers are extremely useful during sticky situations. They include hydrostatic lock cover, zero depreciation cover, and engine protector cover. A Hydrostatic lock occurs when your vehicle's engine comes in contact with water. Water prevents the engine from starting, rendering the vehicle into a static position. It mainly occurs when a parked vehicle is stranded in a flooded area or during monsoons.

Zero depreciation cover promises comprehensive coverage without factoring in depreciation. If your car is damaged following a collision, for instance, and you file a claim, the insurer will cover the entire cost.

Engine protector reimburses damages inflicted if there is the ingress of water or if the gearbox is damaged because of the oil spill.

No claim Bonus

No claim bonus can be claimed from your insurer after a year of buying a policy in case you have not made any claim.

Premium payment

Paying the premium for your car insurance policy is extremely crucial. You have the option of paying the premium annually, bi-annually, quarterly or monthly.

Risk Assessment

An insurance company will undertake a risk assessment before finalizing a policy. This will influence your driving records, age, occupation, etc.

Online aggregators

Using the services of an online aggregators is the fastest, most efficient, and time-saving process. Here you can compare the premiums, drawbacks, and advantages of various policies before choosing the best one. 


These guides are not legal advice, nor a substitute for a lawyer
These articles are provided freely as general guides. While we do our best to make sure these guides are helpful, we do not give any guarantee that they are accurate or appropriate to your situation, or take any responsibility for any loss their use might cause you. Do not rely on information provided here without seeking experienced legal advice first. If in doubt, please always consult a lawyer.

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User Reviews

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very informative.

Nisha on May 15, 2023

It’s a very nice article.

Prasanna on Apr 30, 2023

Thanks for the detailed article.

Anita on May 03, 2023

helpful in understanding the law

Tanvi on May 01, 2023

thank you for the article

Akanksha on Apr 15, 2023

good work. Keep it up

Praveen on May 26, 2023

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Vivek on May 27, 2023

Very nice article. English is very simple. Thank you for the information.

Srikanth on May 16, 2023

nice article

Khushi on May 02, 2023

nice legal article.

Jyothi on May 13, 2023

needed some more information on the subject.

Arpit on May 14, 2023

Written plainly to be understood by anyone who is from a non-legal background.

Aman on Apr 21, 2023

thank you for the information

Prachi on May 24, 2023

very well written

Pratibha on Apr 29, 2023

Nicely written article. Very comprehensive.

Rachna on May 27, 2023

great advice. Thanks

Anshul on Apr 14, 2023

good article. Please provide more info

Dinesh on May 12, 2023

solved my queries.

Aniket on May 05, 2023

good advice. Who can I contact for my legal issue?

Kaushal on Apr 23, 2023

how to contact a lawyer?

Niti on May 11, 2023