Consider this scenario: you’re on a long drive and you unexpectedly get into a minor accident, resulting in damage to both your car and the other party’s vehicle. The immediate aftermath involves the other person seeking compensation, and the financial burden of repairing your own car falls on your shoulders. This is where the significance of car insurance becomes evident, as a comprehensive policy would cover these expenses and relieve you from the financial strain.
In India, most drivers are required by law to have insurance, but it’s crucial to go beyond the minimum coverage to ensure adequate financial protection for yourself, your family, co-passengers, and other drivers in the event of an accident. Investing in the right car insurance policy, which includes towing, repairs, replacements, and coverage for damages to other drivers, is essential. Forbes Advisor India evaluated 30 major car insurance companies and identified the top 10 options for your policy.
Best Car Insurance Companies For 2024
Determining the best car insurance companies for 2024 can be a subjective process, as it depends on individual needs and preferences. However, there are several factors that can help determine the top car insurance companies. These factors include customer satisfaction ratings, financial strength and stability, coverage options and discounts offered, claims handling process and customer service quality. It is important to compare quotes and policies from multiple companies to find the best fit for your specific needs. Some of the top car insurance companies for 2024 may include Allstate, State Farm, Geico, Progressive, and USAA.
Top 10 Best Car Insurance Companies
- HDFC ERGO: Best for Comprehensive Coverage
- Bajaj Allianz: Best for Flexible Coverage Plans
- Reliance General: Best for Large Number of Networked Garages
- IFFCO Tokio: Best for Large Number of Optional Add-on Riders
- TATA AIG: Best Overall Car Insurance Rates
- SBI General: Best for Low Level of Complaints
- Digit Car: Best AI Enabled Process
- ICICI Lombard: Best Claim Settlement Process
- The New India Assurance: Best Renewal Discount
- ACKO: Best Premium Online Discount
HDFC ERGO Comprehensive Car Insurance
Why We Picked It
Our top choice for car insurance is the HDFC ERGO Comprehensive Car Insurance, which provides extensive coverage including third-party insurance, comprehensive insurance, standalone own damage cover, and private car bundle policy. Policyholders can also choose from a wide range of add-ons such as zero depreciation cover, engine and gearbox protection, no claim bonus, and emergency assistance cover. HDFC ERGO’s popular ‘Pay As You Drive’ add-on allows policyholders to pay premiums based on actual car usage. Policyholders driving less than 10,000 kms a year can benefit from a 25% discount on the basic own-damage premium, while those exceeding 10,000 kms will not face extra charges. Additionally, there is a 5% discount on renewals for claim-free years.
Pros & Cons
Pros
- Premium starts at INR 2,094
- Fast claim settlement.
- 24×7 roadside assistance.
- Pan-India presence of network garages.
- Claim process is entirely paperless.
- Services like overnight car repair.
Cons
- No coverage for general wear and tear or depreciation in the value of your car.
Bajaj Allianz Comprehensive Car Insurance
Why We Picked It
Bajaj Allianz provides over 4,500 network garages nationwide and useful features, along with a fully digitized hassle-free cashless claim process. Their comprehensive car insurance policy offers all-round protection, covering losses from natural or man-made calamities, personal accident cover, and third party legal liabilities. Additionally, Bajaj Allianz’s Pay-as-you-go policy covers expenses for both third-party and personal vehicles, with the premium based on a pre-specified number of kilometers. The coverage can be enhanced with customizable add-ons such as engine protector, 24/7 spot assistance, key and lock replacement, consumable expenses, personal baggage, and conveyance benefit.
Pros & Cons
Pros
- Fully digitized claim settlement process.
- Instant issuance and renewals.
- Robust customer support system.
- Great user feedback reviews.
- Online discount up to 70% on premium.
- On the spot claim disbursements.
Cons
- Low number of network garages
- Expensive premium cost.
- Normal wear and tear of vehicles is not covered.
Reliance General Comprehensive Car Insurance
Why We Picked It
If you seek smooth service, extended coverage, and quick claim cover for third-party liabilities and own car damages, the Reliance General Comprehensive Car Insurance Policy is a reliable option. This long-term policy covers accident-related expenses and offers seven add-ons, such as total return to invoice, EMI protection cover, zero depreciation cover, engine protection cover, NCB retention cover, daily allowance benefit, and tyre protector. However, it does not cover accidents caused by driving under the influence, mechanical or electrical breakdown, or wear and tear due to the vehicle’s aging. Additionally, emergency roadside assistance is not provided free of charge.
Pros & Cons
Pros
- Fully digitized and fast process.
- Easy issuance and renewals of policy.
- Easy and fast claim settlement process.
- ‘Self-help’ app allows faster tracking and easy updation.
- Good tie-ups with garages
- No-claim bonus up to 50%.
Cons
- ‘Pay as you drive’ has not been introduced yet.
- Premium is more as compared to basic plan.
- No free road-side emergency assistance
IFFCO Tokio Comprehensive Car Insurance with Zero Depreciation Cover
Pros & Cons
Pros
- Includes zero depreciation cover which is beneficial for new or luxury cars or amateur drivers.
- 24×7 free roadside assistance.
- Instant policy issuance via mobile app.
- Facility to settle the claims faster via QCS (Quick Claim Settlement) app.
- Multilingual website and app support.
Cons
- 100% coverage for the damages.
- Slightly more expensive than regular policy.
- Regular servicing expenses are not covered.
- No coverage for general wear and tear.
TATA AIG Comprehensive Car Insurance
Why We Picked It
The Tata AIG Comprehensive Car Insurance comes with 12 add-ons to cover expenses against third party damages, and own damage coverage. Furthermore, insurers can avail up to 50% discount on car insurance premium post five consecutive claim-free years. Insurers can also opt to get a cover for injuries or any severe physical damage incurred in an accident. The car insurance policy is popular in the market for its smooth claim settlement process and easy renewals. The company also offers a whooping discount of 75% on online premiums. These 12 add-on covers are:
- Zero depreciation cover
- No claim bonus protection
- Roadside Assistance
- Return to invoice
- Repair of glass fiber and plastic parts
- Daily allowance
- Emergency transport and hotel expenses
- Key replacement
- Engine secure
- Tyre secure
- Consumables expenses
- Loss of personal belongings
Pros & Cons
Pros
- Easy customisation of policy with 12 add-on covers
- Huge online discount
- Zero depreciation cover.
- No excess and unnecessary paperwork.
Cons
- Add-on covers come at a cost of additional premium.
- No coverage for regular aging, wear and tear of the car.
SBI General Private Car Insurance Plan
Why We Picked It
The SBI General Private Car Insurance Plan provides third party coverage and also protects the policyholder from any losses or damages due to personal accident or any natural calamities. Under this plan, the insured gets the coverage for damages caused to their own car in case of dents caused by collision during a road accident or car getting stolen. The insured can also add a variety of add-on features to their comprehensive plan to make it more beneficial as per their needs and requirements.
We picked this policy as it provides coverage via various covers with additional premiums such as NCB, key replacement cover, bi-fuel kit, loss of belongings. Plus, other than the PAC of INR 15 lakh for individual owners, the occupants also get the coverage up to a maximum of INR 2 lakh. Several add-on cover with additional premiums, such as:
- No claim bonus
- Key replacement
- Loss of belongings
- Basic roadside assistance
- Coverage for engine guard
- Hospital daily cash coverage for: owner of vehicle and unnamed passengers
- Return to invoice gives you the benefit of receiving back the amount of your car’s invoice value, which includes the cost of registering a new vehicle and its road tax.
- Coverage for consumables such as grease, nut and bolt, engine oil, break oil, among others.
- Coverage for the amount of depreciation applicable on the parts under the facility of nil depreciation.
Pros & Cons
Pros
- Covers major benefits.
- Fast and reliable claim settlement process.
- Wide coverage and variety of add-on covers.
- 100% depreciation repayment coverage.
Cons
- Poor customer service
- No coverage for mechanical or on-road electrical breakdown
- No coverage for regular aging, wear and tear of the car.
Digit Car Standalone Own Damage Car Insurance Plan
Why We Picked It
The Digit Car Standalone Own Damage Car Insurance Plan covers only the policyholder’s own car damages and losses from personal accidents, collisions, theft, and natural calamities. It is a standalone policy separate from a comprehensive plan, but insurers can choose to include third-party insurance. This plan is suitable for those who prefer not to invest in comprehensive plans, as Digit offers the option to enhance coverage through their own damage car insurance plan and additional add-on covers.
1. Zero depreciation cover
2. ‘Pay as you drive’ cover
3. Return to invoice cover
4. Co-passenger cover
5. Tyre protect cover
6. Assistance during car breakdowns at any time
7. Coverage for consumables such as grease, nut and bolt, engine oil, break oil, among others.
8. Engine and gearbox protection cover
Pros & Cons
Pros
- Cost-effective
- Fast claim process.
- Do self-inspection of the damages via smartphone.
- Pick and drop facility for repairs.
- Add-ons to cover loss of personal belongings.
Cons
- Limited coverage of only own damage cover benefit.
- No coverage for third-party liabilities.
- Add-on covers come at a cost of additional premium.
ICICI Lombard Private Car Package Policy
Why We Picked It
The ICICI Lombard Private Car Package Policy offers comprehensive car insurance that covers your own car damages and third-party liabilities. It includes personal accident coverage of INR 15 lakh for the car owner and provides up to a 50% discount on the premium through the No Claim Bonus benefit for five consecutive claim-free years. Policy renewal can be done instantly without paperwork or through an online application. Additionally, ICICI Lombard’s customer support system is responsive through chat and a round-the-clock call center. The plan also includes a 50% discount on the premium under NCB for five consecutive claim-free years, and various add-on covers are available.
- Road assistance cover.
- Engine protection cover.
- Coverage for consumables.
- Zero depreciation cover.
- Coverage for daily allowance for alternate travel like auto and cab, when the car is repaired at the garage.
- Covers personal belongings, such as your laptop, phone and clothes, if they get damaged or stolen in the car.
Pros & Cons
Pros
- Easy claim settlement process via IL Take Care app.
- Easy policy issuance process with no paperwork.
- Responsive customer support.
Cons
- Add-ons come with an extra charge.
- No coverage for car wear & tear and aging.
The New India Assurance Motor Package Policy
Why We Picked It
The Motor Package Policy from New India Assurance provides financial protection for the insured vehicle and includes towing assistance. The reimbursement for towing costs ranges from the accident site to the workshop, with a maximum limit of INR 1,500, upon payment of an extra premium. This insurance offers two types of coverage: liability-only for third-party damages and package policy for both third-party and own car damages. Additionally, there are optional add-ons available for selection.
- Zero depreciation cover
- Coverage for the damage of accessories fitted in the cars such as stereos, fans, air-conditioners.
- Personal accident coverage for co-passengers and paid drivers.
- Coverage for legal liabilities to employees.
Pros & Cons
Pros
- Prompt customer support.
- Option to customize your IDV.
- Wide coverage with multiple add-ons
Cons
Why We Picked It
ACKO Comprehensive Super Saver Car Insurance provides a range of cost-effective add-ons that can be purchased alongside your standalone own damage protection policy. This plan combines the benefits of both third-party insurance and own damage cover. Key features of this car insurance policy include zero depreciation cover, roadside assistance cover, key replacement cover, outstation emergency cover, consumables cover, engine protection cover, NCB protection, return to invoice cover, and personal accident cover. ACKO’s customer support is available 24/7 to assist with various inquiries, including policy purchases and renewals. It also offers services such as three-day doorstep delivery with one-hour pickup and instant repairs at no additional cost. Consider purchasing this plan as an additional option to the mandatory third-party insurance policy.
Pros & Cons
Pros
- Simple process for buy and renewal of policy.
- Round-the-clock emergency assistance.
- Fast settlement for minor claims.
- AI-enabled self-inspection.
- Purchase the policy with paperless documentation.
Cons
- Zero depreciation coverage is available as an add-on cover.
- No coverage for regular wear and tear of the vehicle.
- No coverage for any kind of manufacturing defect in the car’s component.
Methodology
When it comes to purchasing car insurance, it can be overwhelming to navigate through all the policies without understanding their features. To help you make an informed decision, we have considered several parameters in selecting the best car insurance policies in India. These include coverage options, premium rates, customer service reputation, claim settlement ratio, add-on benefits, and discounts offered by the insurer. It is important to assess each of these factors before choosing a policy to ensure that it meets your specific needs and provides comprehensive coverage for your vehicle. Additionally, reading reviews from other policyholders can provide valuable insights into the insurer’s overall performance and reliability.
Type of Policy Coverage (30%)
The aforementioned policies each have their own coverage and benefits. Comprehensive plans offer extensive coverage for damages and third-party liabilities, while third-party plans provide basic protection by covering damages from third-party liabilities. As previously stated, a third-party plan is required for all car owners in India.
Add-ons Benefits (20% of the score)
We also assessed the additional benefits included in the basic plan. It is important to be pragmatic when selecting these additional covers. Features like zero depreciation, no claim bonus benefits, consumables cover, and others can significantly decrease your car repair costs. Note that it is not possible to purchase any add-on features with the third-party plan.
Cashless Network Garages (20% of the score)
We have listed the number of tie-ups these car insurance companies have with garages for cashless car repairment expenses. Some companies including HDFC ERGO, Reliance general and TATA AIG have as many as 8,000 network garages.
Customization of IDV (20% of the score)
IDV refers to the Insured Dealer Value of your car which is close to the current market value of the car. The insurance company allows you to select or customize the car’s IDV from a selected range. And, if one chooses a lower IDV, then they will have to pay a comparatively lower premium to insure the car and vice versa. This simply means more the value of the car, higher the premium payable to insure it. Although, it is highly recommended to select a high IDV for maximum coverage.
Online Insurance (10% of the score)
Thanks to online and digital technology, purchasing an insurance policy can now be done in just a few minutes. We have compiled a list of policies that can be conveniently bought online without any paperwork. Some companies even provide discounts on premiums for online purchases.
What is Car Insurance and How it Works?
Having car insurance is essential to cover the costs of car repairs and damages, whether they occur to your own car, someone else’s car, or property. In India, it is mandatory for all car owners to have at least third-party car insurance. However, it is recommended to opt for comprehensive car insurance, as it offers complete protection for damages to your car, third parties, and property. On the other hand, third-party insurance only covers liabilities from other vehicles or property and does not provide coverage for your own car. Car insurance also provides compensation for damages from accidents, collisions, or theft. To insure your car, you pay a fixed premium to the insurance provider in exchange for coverage benefits based on your chosen policy. This is why car insurance is crucial, especially for regular drivers, as the risk of accidents or collisions is always present regardless of how carefully you drive.
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How To Choose The Best Car Insurance Company In India?
Buying the best car insurance policy requires car owner to consider the following parameters, namely:
Assess Your Needs. Select the car insurance policy that suits your budget you can spare for the protection of your car as well as third-party damages.
Authenticity/Reputation of Car Insurer. It is important to check if the insurer is registered with the country’s insurance policy regulator, Regulatory and Development Authority of India (IRDAI), for authenticity.
Claim Settlement Ratio (CSR). Crucial, as it represents the number of claims raised to the number of claims settled in a given financial year. Forbes Advisor India advises to select an insurer that has a CSR at least above 90%.
Cashless Garage Network: Car insurance policies we’ve selected for this best-of have a minimum of 500 to more than 8,500 cashless garage networks. Depending on how you prefer to use your conveyance, it is important to choose the insurer with a good record of maintaining a great tie-up with cashless garages.
Compare Different Car Insurers Online: Once you’ve known features that insurers offer, you can narrow down your search for the best car insurance companies online based on their premium quotes, add-ons available, customer reviews.
Factors Affecting Your Car Insurance Premium
The car owner or insured pays a periodic amount to the insurance company for purchasing a car insurance policy, which provides financial protection for the vehicle and covers third-party liabilities. Various factors can affect the car insurance premium.
Engine Cubic Capacity
The car which one owns or drives also is a major deciding factor for your car insurance premium. The engine cubic capacity (cc) of the vehicle varies and this decides the premium of the car insurance coverage. As per thumb rule, higher the cc of your car the higher will be the premium.
Age
There will be more premium charged for the new car as compared to an old vehicle. This is simply because more coverage would be required for insuring a new car as compared to any old vehicle.
Fuel
Premium charged for petrol or diesel cars is less than CNG cars because of the latter’s higher maintenance cost.
Insured’s Declared Value (IDV)
The IDV refers to the current market value of the vehicle, which is further administered by depreciation. So if the IDV is higher, then there are chances of higher premium and vice-versa.
Coverage Type
Car insurance policy with comprehense policy that covers expenses of repairs or damages caused to your car as well as third-party’s car or property. In India, it is compulsory for every car owner to have at least a third-party car insurance policy.
Location of the Car Registration
Location is one of the crucial factors that determines the premium amount. This means, if a car insured belongs to an urban area or a highly populated city such as any metro city, then the premium rates would be higher because of high chances of claims due to traffic, congestion, vandalism and other issues.
Types Of Car Insurance Policies In India
Car insurance policies are generally classified into three types: liability coverage, collision coverage, and comprehensive coverage. Liability coverage is mandatory in most states and covers the cost of damages or injuries to others in an accident caused by the insured driver. Collision coverage pays for repairs or replacement of the insured vehicle if it collides with another car or object, regardless of who is at fault. Comprehensive coverage covers damage to the insured car from non-collision events such as theft, vandalism, or natural disasters. It is essential to choose a policy that suits your needs and budget while providing adequate protection.
Comprehensive Insurance
Comprehensive car insurance is an extensive insurance policy for private cars that offers protection to the vehicle from all kinds of risks, such as accidents and collisions, theft, third party liabilities and natural calamities like flood, landslide etc. The insured also has the option of adding add-on covers to enhance the scope of coverage.
Third Party Insurance
Third-party car insurance is a standard vehicle insurance policy which is mandatory to be taken in India. It covers you up to a maximum of INR 7.5 lakh against third-party liabilities and offers insurance coverage against damages caused by your car to a third party or third property. It also provides coverage in case of the death of a third party.
Standalone Own-Damage Car Insurance Policy
This kind of policy provides coverage for own damages, which has caused loss to the policyholder’s car. It is to be noted that this kind of policy does not offer coverage for third-party car insurance. Standalone own-damage car insurance policy is effective in India from September 2018.
Difference Between the Types of Car Insurance Policy in India
Here is the list of the key differences between a comprehensive policy and a third-party cover car insurance policy, in a table given below:
Why Do You Need to Renew Your Car Insurance Policy?
It is essential to renew your car insurance policy on time, just as important as buying a new policy. Failure to renew on time could lead to significant inconvenience, as the policy will become void, requiring the purchase of a new, more expensive, and time-consuming policy from an insurer. If your policy is due for renewal, consider the following tips.
- Renew your car policy within one year after purchasing it.
- The insurance companies remind about the car insurance renewal via call, SMS alerts or an email well in advance before the policy expires.
- If policy is not renewed on time, then you might lose the benefits of No Claim Bonus (NCB). NCB is a discount on premium which an insurance company provides to its policyholders on making no claims in the previous years.
- No grace period is provided in case of a car insurance policy. That is why one must immediately pay it to avoid the cancellation or expiry of the policy.
- If you plan to change your car insurance, then purchase a new policy before your existing policy expires in order to avoid any risks.
- You can also opt for a long-term car insurance policy offered up to three years and can also avail certain discounts upon it.
How to Calculate Car Insurance Premium?
In India, the total amount of your car insurance is comprised of three main elements, namely: Third Party Premium: This type of premium is determined by the car’s engine capacity and is specified by the Indian insurance regulator, IRDAI.
Third Party Car Insurance Premium Rates as per FY 2024
Own damage Cover Premium: This coverage is optional but very beneficial. Here, the premium is computed on the basis of the car’s IDV. Higher the Insurance Declared Value, higher the premium and vice versa. So, as your car grows older, the IDV automatically decreases.
As per the Indian Motor Tariff, formula to calculate car’s IDV is:
IDV = Showroom price of your car + cost of accessories (if any) – depreciation value as per (IRDAI)
Thus, formula to calculate own damage (OD) premium amount is:
OD premium = IDV X [Premium Rate (decided by insurer)] + [Add-Ons (zero depreciation cover)] – [Discount & benefits (free towing, free car check-up)]
Add-on Riders Premium: If you opt for any additional add-on riders such as engine protection cover, bumper to bumper coverage or any other, the premium cost will increase as per the riders chosen along with the main car insurance policy
Benefits Of Renewing Auto Insurance Policy Online
One can easily renew their car insurance policy in minutes with the convenience of the internet and can save a lot of time. Here are the benefits of renewing your auto insurance policy online:
- Paperless or requires minimal paperwork.
- Hassle-free and smooth process.
- Affordable and easy to compare.
- Easy to switch the car insurance company.
- Policy gets renewed quickly in minutes.
- Safe and secured payment process without the involvement of third-party agents.
- Easy transfer of NCB at the time of renewal of your car insurance policy.
How To File An Online Car Insurance Claim?
The car insured can settle their claims hassle-free and with in minutes via online services. Below is the step-by-step claim settlement process for car insurance policies:
- Fill the claim submission form online via the company’s webiste.
- Then the insurer will inspect the insured vehicle.
- Submit necessary documents as asked by the company.
- Once approved, the claim amount would be notified to the network garages.
- Lastly, payment is made to the company’s network garages directly and the insured vehicle would be repaired.
Documents Required To File Car Insurance Claim
- Signed insurance claim submission form.
- Identity proof such as PAN card, Aadhar card or passport.
- Address proof such as electricity bill or Aadhar card.
- One passport sized photograph.
- Driving license copy.
- Registration certificate of the vehicle.
- Pollution certificate.
Summary
Finding the best car insurance company is essential for protecting yourself and your vehicle on the road. With so many options available, it’s important to do your research and consider factors such as coverage options, customer service, and affordability. By reviewing the top car insurance companies for 2024, you can make an informed decision that meets your needs and provides peace of mind while driving. Remember to compare quotes, read reviews, and take advantage of any discounts or special offers available. Don’t wait until it’s too late – invest in the best car insurance company today to ensure a safe and secure future on the road.
Best Car Insurance Companies 2024 Faqs
How is the third-party premium for car insurance calculated?
What are the benefits of cashless garages?
Cashless garages help in repairing car’s damages and simultaneously settle the claims in a hassle-free way. Car insurance companies have a tie-up with these garages which are specialized in mending all kinds of car repairs. When the repair is done via these cashless garages, the insured does not have to pay anything to the garages as the claim gets directly settled with the insurance company.
Do I need to inform my car insurance company if I change the CNG in my car to LPG?
Yes, you have to inform the insurance company when you change the fuel type of your car from CNG to LPG as coverage and premium rates differ accordingly.
Do I need to inform my car insurance company if I change the CNG in my car to LPG?
Yes, you have to inform the insurance company when you change the fuel type of your car from CNG to LPG as coverage and premium rates differ accordingly.
Is it possible to change my car insurance company?
Yes, switching car insurance from one company to another company is possible at the time of policy renewal, which needs to be applied at least 45 days before the due date.
Which is the best company for car insurance in India?
The top car insurance companies in India are:
- HDFC ERGO
- IFFCO Tokio
- Reliance General
- Tata AIG
- SBI General
- Digit Insurance
- ICICI Lombard
- ACKO Insurance
What will happen to my NCB if I switch my car insurance company?
You can always retain a no-claim bonus (NCB) even if you change your insurance company. At the time of policy renewal, you can claim your NCB which has been accumulated under your name.
What will happen if my car insurance policy has lapsed?
If one fails to renew their policy on time, then their insurance policy will be lapsed. There are also hefty fines for driving the car without having a valid or lapsed car insurance policy. As per the Indian Motor Tariff rules, driving a car on Indian roads without at least third-party car insurance is a criminal offense with a fine of INR 2,000 or imprisonment of up to three months.
Also, if any damages occur post the expiry of insurance, then one will not be allowed to receive any sort of compensation for the damages suffered.
What are the reasons when insurance companies can reject your car insurance claims?
- If you try to dupe an insurance company by creating a fraud and incorrect picture to seek benefits.
- If you are driving without having a valid driving license.
- If you violate any of the terms and conditions of car insurance policy.
- If the policy is not renewed on time.
- If you drive an injured car which further worsened the condition leading to engine damage, such losses will not be covered.
- If you take more delay to make claim intimation.
- If you drink and drive.
How does a car insurance company provide coverage without checking the condition of the car in India?
In India, you might receive car insurance coverage without any inspection by the insurance company. Generally, at the time of renewal the insurance companies consider the no-claim bonus amount, if there is no claim made in the preceding years, the companies renew the policy at affordable premium rates. However, the pre-policy car inspection can happen if there is a huge gap between the policy expiry and renewal.
How do insurance companies estimate car damage?
The insurance companies inspect the car at the time of damage to make sure that the claim is authentic. The insurer generally allots an inspector who investigates the damages to your car to settle the claim as per the terms of the policy. For this, the inspector takes out several pictures and videos as an official record and proof and then notifies the insurance company about its assessment.
What is the formula for a car’s IDV calculation?
Generally, the car insurance policies give freedom to the policyholder of opting the insured declared value (IDV) as per their choice. IDV refers to the maximum amount of claim that the insurer will pay if the vehicle is damaged beyond repair or in case of a theft. The formula to calculate IDV is:
IDV = Showroom price of your car + cost of accessories (if any) – depreciation value as per (IRDAI)
