Important Things to look for while buying Car insurance

1. IDV (Insured Declared Value)

• What it is: The current market value of the car. It is the maximum amount the insurer will pay in case of Total Loss (Theft or Fire).

• The Trap: Many agents reduce the IDV to lower the premium amount to close the deal.

• Your Rule: Never lower the IDV. Always keep it close to the market value. If the car is stolen, a low IDV means a huge financial loss.

2. Zero Depreciation Cover (Bumper-to-Bumper)

• What it is: Without this, the insurer deducts depreciation (wear and tear) on parts.

  • Plastic/Rubber/Glass: 50% Depreciation (You pay half the bill).

  • Metal: 0-50% depending on age.

• The Reality: With Zero Dep, the insurance pays 100% of the parts cost.

• Who needs it: Mandatory for all cars up to 7-10 years old.

3. Engine Protection Cover

• Why it's critical in Indore: Indore has waterlogging issues (flooded underpasses, heavy rains).

• The Risk: If a car drives through water and the engine seizes (hydrostatic lock), a standard policy rejects the claim because it's considered "consequential damage" (negligence).

• The Fix: This add-on covers engine repair/replacement due to water ingress or oil leakage. Repairing a Fortuner engine costs ₹4L+; this cover costs ₹3k.

4. Return to Invoice (RTI)

• What it is: In case of Theft or Total Loss, the insurer pays the Original On-Road Price (Invoice Value) instead of the depreciated IDV.

• Example: You bought a Creta for ₹18L. After 2 years, IDV is ₹12L.

  • Without RTI: You get ₹12L.

  • With RTI: You get ₹18L + Road Tax + Registration charges.

• Who needs it: Crucial for new cars (0-3 years old) and luxury cars.

5. Consumables Cover

• The Hidden Cost: Even in a Zero Dep claim, you have to pay for "Consumables" like Nut-bolts, Screws, Engine Oil, Coolant, AC Gas, Grease, etc.

• The Impact: In a major accident, consumables can cost ₹5,000 - ₹25,000. This add-on makes the bill truly "Cashless."

6. Cashless Garage Network

• The Logistics: Does the insurer have a tie-up with the authorized workshops in Indore (e.g., Sanghi Brothers, Patwa, Rajpal Toyota)?

• The Pain: If not cashless, the client has to pay the full bill (say ₹2 Lakhs) from their pocket and wait 30 days for reimbursement.

7. Claim Settlement Ratio (CSR)

• The Metric: Look for a CSR above 95%.

• Pro Tip: Don't just look at the percentage; look at the Claim Settlement Speed. Some insurers have high CSR but take 2 months to pay.

8. Third-Party Limits (TP)

• Legal Requirement: This is mandatory by law. It covers damages to others (people or property).

• The Check: Ensure the policy is valid. The fine for driving without TP insurance is heavy.

9. Personal Accident Cover (PA)

• Mandatory for Owner-Driver: It provides ₹15 Lakhs coverage for the owner in case of death/disability.

• Recommendation: Also suggest Passenger Cover for family cars (Ertiga/Innova) to cover the family members sitting inside.