Car Insurance in India 2025 Guide : Buying a car is an exciting time for many; however, most people forget to consider the critical importance of the right insurance after the purchase. In 2025, car insurance is not merely a legal requirement; it is there to protect you from immense financial losses lined with accidents, thefts, fires, or natural calamities. Since there are innumerable insurance companies and plans out there, reaching a right decision becomes quite a conundrum. Thus, here are some simple guidelines to put you in the correct way.
In India, the two main types of car insurance are available. One is third-party insurance, which is a mandatory type by law. It protects the other person or property which you might have damaged but does not protect your own car. The other one is comprehensive insurance, which protects against third-party damages and damages to your own vehicle. Comprehensive insurance would be the better option if one owns a newer or expensive car.
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While buying insurance, check the extent of coverage given. Candle coverage: accident, fire, theft, flood, or any other natural calamity. Many insurance companies will be offering useful add-ons by 2025, such as zero-depreciation (full claim amount without deductions), engine protection, roadside assistance, and return to invoice cover. These do elevate the premium a notch but offer some extra peace of mind.
It is important to compare policies available in the market before finalizing the insurance. Never choose a policy solely based on low premiums. Check for product benefits, customer experience regarding the claim process, and customer reviews. An inexpensive plan is useless if the company doesn’t honor your claim.
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Check the claim settlement ratio of the insurer. A high ratio shows most of the claims are being settled, thus giving the company credibility. The IDV, or Insured Declared Value, is an extremely critical factor as it is the amount you will be paid in case of the total loss or theft of your car. Maintain the IDV such that it is not too low (whereby you suffer a loss) and not too high (whereby it increases your premium).