How to choose a car insurance policy in India?

Team Digit, 29 May 2018

Ever heard of a doctor blindly writing prescriptions without a thorough consultation? No, right? The same rule applies to insurance too. Asking the right questions has never been more important!

There’s a reason why the same dress doesn’t look as flattering on you as it does on your best friend. You see where we’re going with this? Since one fit for all doesn’t work for something as basic as clothes, why should it work for your motor insurance policy? 

So, flip your phone out and make a quick note of all that we’re saying.

What kind of car insurance policy coverage are you looking for?

●      Let’s start with the basics. Imagine this: You’re on the road and your boss calls. You know you can’t miss this one, so you scramble to answer. In the flash of a second, boom! You’ve braked too late and hit the bumper of the car ahead. This is where your third-party motor insurance cover kicks in.

●      As per the Indian law, you can’t take your vehicle out on the road without a third-party insurance. This policy protects others involved in a vehicle accident that you’ve caused, covering injuries and in this case, vehicle damage to the third party.

Therefore, if you have a hand-me-down car on which you are just polishing your car driving skills, or your car is too old for you to bother about repairing it, a third party insurance policy is ok for you. But remember that this insurance policy doesn’t take care of damage to your car, or injuries borne by you!

●      So if you are wee bit bothered about your own damages, then pick a Comprehensive car insurance policy (Own damage +Third Party+ Fire & Theft).

Think of it this way: An all-rounder in a cricket team can smash sixes and take wickets with equal ease and this policy is just like that. It includes third party liability and also takes care of nicks, scratches and dents to your car, and well, you, in case you’re all shaken up. 

Are you willing to go the whole hog?

You’ve got the Comprehensive car insurance policy finally, you feel like you’re succeeding at adulting. But, before you flash your best wide grin, let’s hit the pause button. While these two insurance policies seem like they’ve got you covered, we’ve got news for you. Insurance add-ons make your motor insurance policy infinitely better.

Think of them as a superhero’s superpowers. After all, Spiderman without his ability to spin a web with the flick of a wrist is just another guy in a red bodysuit! Want your motor insurance to have a power boost? These insurance add-ons are just like Thor’s hammer or Captain America’s shield.

If you have the budget for it, choose add-ons that make your insurance absolutely watertight.

Here’s a quick list of some of the add-ons which really make sense:

1. Parts Depreciation Cover (Zero Depreciation/ Bumper to Bumper)

Like everything in life, there is a decrease in value of certain parts of your car, including the bumper or any other metal or fibre glass parts. So, when a damage happens, the full cost of replacement is not given as depreciation is deducted from the claim money. But this insurance addon makes sure there is Zero Depreciation and you get the full value of the cost of repair/replacement provided the vehicle is repaired at Digit Insurance Authorised Workshop.

2. Consumable Cover

Most of us think the cost of replacement of parts like screws, engine oils, nuts & bolts, grease is covered in the standard package policy, sadly it is not. But with this addon, we cover this cost.

3. Engine and Gear-Box Protection Cover

If an accident causes a damage to an engine, it is covered under a standard package policy or the comprehensive car insurance policy. But if it is a consequential damage, it is not covered. For example, if your car is towed roughly or during floods you switch on the engine, which causes damage to the engine or gearbox, this addon comes to your rescue, covering the repair charges. Btw, the cost of replacement of an engine is approx. 40% of vehicle cost, which is huge.

4. Return to Invoice Cover

If your car gets stolen or it’s totally damaged or its repair cost estimated is more than 75% of its IDV, we cover the cost of buying a similar new car i.e. you get the Ex-showroom price or last invoice value, minus the IDV (Insured Declared Value)... Btw, we have also included the cost of registering the new vehicle and the road tax for it. This is especially important for new cars.

5. Return to Invoice Cover

If your car gets stolen or it’s totally damaged or its repair cost estimated is more than 75% of its IDV, we cover the cost of buying a similar new car i.e. you get the Ex-showroom price or last invoice value, minus the IDV (Insured Declared Value)... Btw, we have also included the cost of registering the new vehicle and the road tax for it.

Troubleshooting is what we do best. So, there you have it! We’ve covered all the bases. Still, want to know something specific about your policy, leave us a comment and we’ll get back to you ASAP.

Team Digit

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