How to Choose the Best Car Insurance Policy in India – Agent’s Tips

 



Buying car insurance is not just a legal necessity in India—it’s a smart financial decision that can save you from significant out-of-pocket expenses. With so many insurance companies, policies, and confusing jargon out there, selecting the right car insurance policy can be overwhelming. As a car insurance agent, I’ve seen firsthand how customers often feel lost when trying to choose a policy.

As a licensed POS agent working with a trusted platform like pos.squareinsurance.in, I’ve helped hundreds of car owners navigate the process. In this guide, I’ll share proven agent tips to help you choose the best car insurance policy in India—whether you’re buying for the first time or renewing your coverage.

1. Understand the Types of Car Insurance in India

Before comparing plans, you need to understand the two primary types of car insurance:

Third-Party Insurance (Mandatory)

  • Covers liability for damage or injury to a third party or their property.

  • Does not cover your own vehicle.

  • Mandatory under the Motor Vehicles Act, 1988.

Comprehensive Insurance (Recommended)

  • Covers third-party liability plus damage to your own vehicle.

  • Includes theft, fire, natural calamities, and man-made disasters.

  • Can be enhanced with valuable add-on covers.

Agent Tip:
Third-party plans are cheaper but offer limited protection. For better safety and long-term value, always consider a comprehensive plan.

2. Compare Premium vs. Coverage – Don't Just Go Cheap

Many buyers focus solely on the lowest premium. That’s a mistake. A cheaper policy might:

  • Offer lower Insured Declared Value (IDV)

  • Exclude essential add-ons

  • Have poor claim settlement records

Use tools like the POS portal by Square Insurance to compare plans side by side. Look at:

  • IDV (the current market value of your car)

  • Network garages

  • Claim settlement ratio

  • Add-on options

  • Customer reviews

Agent Tip:
Choose a policy that balances cost and coverage. A slightly higher premium is worth it if it offers better protection.

3. Check the Insured Declared Value (IDV)

IDV is the maximum amount your insurer will pay if your car is stolen or totally damaged. It directly impacts your premium.

  • A higher IDV means better compensation in case of total loss.

  • Lowering IDV to reduce the premium may cost you more at claim time.

Agent Tip:
Always opt for an IDV close to your car’s current market value. Avoid artificially lowering it just to save money.

4. Evaluate the Claim Settlement Ratio (CSR)

CSR indicates how many claims a company has settled out of the total received. A higher CSR means you’re more likely to get your claim approved without delays.

  • Look for insurers with CSR above 90%.

  • Square Insurance partners only with reputed companies known for reliable claim handling.

Agent Tip:
Don’t fall for flashy marketing. Check CSR on the insurer’s website or IRDAI’s latest annual report.

5. Review Cashless Garage Network

Cashless claims mean the insurer settles the bill directly with the garage—saving you time and hassle.

  • Check if your local or preferred garage is in the insurer’s network.

  • A wider garage network is better, especially for frequent travelers.

Agent Tip:
Before buying, search the list of authorized garages near your area through the Square POS portal.

6. Don’t Skip Add-On Covers – They’re Worth It

Add-ons are extra protections you can attach to your comprehensive policy. Here are some of the most valuable ones:

  • Zero Depreciation Cover: Full claim amount without depreciation deduction.

  • Roadside Assistance: Help in case of breakdowns or flat tires.

  • Engine Protection: Ideal during floods or waterlogging.

  • Consumables Cover: Covers engine oil, nuts, bolts, etc., during repairs.

Agent Tip:
If you have a new or high-end vehicle, add-ons like Zero Dep and Engine Protection are highly recommended.

7. Look for No Claim Bonus (NCB) Benefits

If you don’t make a claim during a policy year, you earn a No Claim Bonus, which reduces your premium on renewal.

  • NCB starts at 20% and can go up to 50%.

  • You can also transfer NCB if you switch insurers.

Agent Tip:
Ask your agent or use the Square Insurance portal to check your NCB eligibility before renewing.

8. Consider Policy Portability and Customer Support

Good customer support and flexibility matter, especially during claim time. Some insurers offer:

  • 24x7 claim assistance

  • WhatsApp-based support

  • App-based claim tracking

Agent Tip:
Stick with insurers that offer digital support, smooth claim processing, and policy portability if you want to switch providers next year.

9. Use a POS Agent for Hassle-Free Support

While online aggregators can show you quotes, a POS agent offers personalized advice, faster support, and local expertise. With Square Insurance’s POS platform, agents can:

  • Instantly generate quotes from multiple insurers

  • Help with documentation and renewal reminders

  • Assist with filing and tracking claims

  • Offer post-sale service and updates

Whether you’re a car owner or want to become a POS agent, this platform helps simplify car insurance buying and selling.

Conclusion

Choosing the right car insurance policy in India doesn’t have to be confusing. By understanding your needs, comparing wisely, and taking advantage of expert help from a certified POS agent, you can find a policy that offers the right balance of cost, coverage, and convenience.

In uncertain times, good car insurance isn’t just a requirement—it’s your financial shield on the road. Whether you're renewing your policy, buying a new one, or becoming a POS agent with Square Insurance, now is the time to act smart, stay covered, and drive with peace of mind.

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