Car insurance in India has undergone significant evolution, offering faster and more streamlined services. Today, you can get your car insured online in just a matter of minutes. Around one-fourth of the car insurance policies in India are purchased via online channels. However, it is crucial to choose the proper coverage. Although it is legally mandatory to have a third-party car insurance policy under the Motor Vehicles Act, 1988, it does not protect your vehicle against damage. Selecting the right features can save you from unexpected financial setbacks caused by accidental damage, natural disasters, or theft.
"A car insurance policy is not just about meeting the legal requirement, but also about confidence on the road. Having a comprehensive policy, the right add-ons, and a strong network of garages ensures that you are financially protected against any unexpected events." – Nikhil Pandya, Chief Distribution Officer at Royal Sundaram
Here is the must-have checklist for 2025 to help you make an informed decision.
1. Assess Your Coverage Needs
The risk differs for every driver. Ask yourself:
- Do you drive in heavy traffic or accident-prone areas?
- Is your area prone to flooding or extreme weather conditions?
- Do you frequently take long road trips?
2. Choose the Right Add-On Covers
Add-ons provide wider coverage and customise your policy to suit your driving habits and risk profile.
- Zero Depreciation Cover ensures full claim value without deductions for wear and tear.
- Engine Protection Cover is essential for flood-prone areas, covering engine repairs resulting from water ingression.
- Roadside Assistance provides emergency support such as minor repairs on the spot, towing and fuel delivery.
- NCB Protection helps retain your No-Claim Bonus even after filing a claim.
"Car insurance is not one-size-fits-all. So, choose add-ons that suit your driving habits and risks, customising your policy for better protection." – Nikhil Pandya, Chief Distribution Officer at Royal Sundaram
3. Check the IDV
Your Insured Declared Value (IDV) represents the current market value of your car. It affects both your premium and maximum claim payout. While lowering the IDV reduces premiums, it also decreases the compensation you receive in the event of a total loss, so choose wisely.
4. Review the Claim Settlement Ratio (CSR)
A high CSR indicates an insurer’s efficiency in settling claims. Research customer reviews and settlement timelines to ensure a smooth claims experience when needed. Royal Sundaram has a strong track record of fulfilling commitments with a 98.33%* CSR.
5. Balance Your Premium and Deductibles
Although a lower premium may seem appealing, you must choose a deductible that aligns with your financial comfort. Opting for higher voluntary deductibles can lower your premium, but ensure that it is an amount you can comfortably pay out of pocket without straining your finances during a claim.
6. Don’t Ignore Personal Accident Cover
A Personal Accident Cover is now mandatory, providing financial support in the event of owner-driver injuries or disability. However, ensure your policy extends coverage to passengers too for complete protection. You can also enhance your personal accident cover upto 50 Lacs in Royal Sundaram policies.
7. Ensure Access to a Wide Network of Garages
A strong cashless garage network ensures you don’t have to pay upfront for repairs. Choose an insurer with a nationwide network to ensure you can receive assistance anytime, anywhere. Royal Sundaram's 7,600+ cashless garages across India ensure you receive hassle-free repairs wherever you are.
Stay Protected with the Right Coverage
Royal Sundaram’s comprehensive car insurance policy is designed to provide complete peace of mind. It offers benefits such as cashless claim settlements at an extensive network of garages, seamless claim processing, and protection against accidents, theft, and natural disasters, ensuring you stay covered in every situation.
*Claims settled = claims paid + rejected + closed as of FY2023-24.
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