Learn how to compare car insurance plans by cover, IDV, add-ons, claim process and exclusions, not just price. Follow simple steps, then get a quote.
To compare car insurance plans the right way, look at what each plan covers, not only what it costs. Check the type of cover, IDV, add-ons, deductibles, claim process and exclusions. The plan with the lowest premium is not always the one that helps you most at claim time.
Follow the steps below and you will make a clear, confident choice.
Step 1: Match the plan type to your need
First decide what kind of policy you need.
- Third-party cover is compulsory for every vehicle under the Motor Vehicles Act, 1988. It pays for injury, death or property damage to another person. It does not pay for your own car.
- Comprehensive cover is third-party plus own-damage cover. It covers accident, fire, theft, natural calamities and man-made events for your own car, per policy terms.
Read our guide on third-party vs comprehensive car insurance if you are not sure. You can also see our pages on third-party insurance and comprehensive insurance.
Step 2: Check the IDV
IDV (Insured Declared Value) is your car's market value as agreed with the insurer. It is the maximum amount paid for theft or total loss.
- A very low IDV lowers the premium, but you may get less money in a big claim.
- A very high IDV may cost more and may not be accepted.
Compare plans using a fair IDV that matches your car's real value. If one plan shows a much lower IDV, that is why its premium looks smaller. Our post on what is IDV in car insurance explains this well.
Step 3: Compare add-ons
Add-ons are optional covers. Plans differ in which add-ons they offer and what limits apply. Common ones are zero depreciation, engine protection, return to invoice, roadside assistance, consumables cover, key and lock replacement, NCB protection, daily allowance and tyre protection.
When you compare, keep the same add-ons in each plan. Otherwise you are not comparing like with like. Read about each option in car insurance add-ons explained. If you have a newer car, look at zero depreciation cover.
Step 4: Look at deductibles
A deductible is the part of a claim that you pay. Every claim has a compulsory deductible. You can also choose a voluntary deductible, which usually lowers your premium but raises your share in a claim.
Choose a voluntary deductible only if you are comfortable paying that amount yourself.
Step 5: Check the claim process
A cheap plan is not helpful if claims are hard. Look for:
- Cashless garages: In a cashless claim, you repair at a network garage and the insurer pays the garage directly. You pay non-covered items and deductibles. Check if there are network garages near you.
- Reimbursement: You pay first and claim money back with bills.
- Claim help: How easy is it to contact the insurer and report a claim?
- Time: Ask how the process works and what documents are needed.
Read our post on cashless vs reimbursement claims for a clear view.
Step 6: Read the exclusions
Every policy has things it does not cover. Common ones include:
- Wear and tear.
- Mechanical breakdown.
- Drunk driving.
- Driving without a valid licence.
- Using a private car for commercial work.
- Engine damage from water, unless you have engine protection.
Know these before you buy. Claims can also be rejected for late intimation or wrong facts.
Step 7: Think about NCB and renewal
Your No Claim Bonus is a discount on the own-damage premium for claim-free years. It belongs to you, not the car. See our No Claim Bonus page for the usual slabs. Check whether the plan offers NCB protection, and whether renewal is easy.
A simple comparison checklist
Use this list when you put plans side by side:
- Same type of cover (third-party or comprehensive).
- Similar IDV.
- Same add-ons.
- Same deductible.
- Network garages near you.
- Clear claim steps.
- Exclusions you can live with.
- Total premium, once everything above matches.
Price should be the last step, not the first. When all the other points match, then compare the cost.
Common comparison mistakes
- Choosing only by the lowest premium.
- Comparing plans with different IDV values.
- Ignoring exclusions and claim limits.
- Skipping the policy wording.
- Not telling the insurer the correct facts about your car.
Our post on car insurance mistakes to avoid has more tips. When you are ready, you can get a quote and our team will help you compare in plain words.
Insurance rules and policy terms can change, and each insurer has its own conditions. Your policy document is the final word on what is covered.
FAQs
Should I choose the plan with the lowest premium?
Not always. A lower premium may come with a lower IDV, fewer add-ons or tighter limits. Compare cover, claim process and exclusions first.
Can I compare plans online?
Yes, you can compare plans online or with an adviser. Make sure each plan has the same cover, IDV and add-ons so the comparison is fair.
How often should I compare plans?
It is a good idea to compare at every renewal. Your car's age, value and needs change over time.
Does comparing plans affect my No Claim Bonus?
No. Comparing is free and has no effect on your NCB. Your NCB is usually kept if you renew on time.
This guide is for information only. Rules and policy terms can change, and the policy document is final. Please read your policy wording.