u/Consistent_Rise7226

A lot of people go with dealer insurance because of the “easy/hassle-free claims” thing. That’s what the salesmen say anyway, right?

But one thing people often miss is that the surveyor is appointed by the insurer, and they’re the ones who assess the damage and decide what gets approved.

So if you buy ICICI insurance directly from ICICI vs buying the same ICICI policy through a dealer, the claim experience shouldn’t suddenly be different just because you bought it from the dealer.

And yes, the ASC/dealer is still there to help with the claim process and handling regardless of where you bought the policy from.

So what should you actually look at when buying insurance with a new car?

Two things mainly:

1. The price the dealer is offering.

2. What exactly is included in the quote - which insurer, IDV, and which add-ons.

Don’t just compare the final premium. Ask for the actual quote and check what you’re paying for.

And to be safe, check the insurer’s own cashless garage list as well. That way you know whether the ASC/dealer you’ll be using is actually cashless with that particular insurer.

Dealer insurance isn't always bad. Just don’t assume it’s automatically better because the salesman says “claims are hassle-free.”

Add-ons are where most of the confusion happens. The insurer lists multiple options, the aggregator lets you click checkboxes, and you have no idea which ones actually matter.

 

Here's my honest ranking based on what I've seen across hundreds of policies and claims:

 

Must-have (get these):

 

1. Zero Depreciation — Covers the full cost of replaced parts without depreciation deduction. Without this, a ₹1 lakh claim might only pay ₹60,000-70,000 because of depreciation on parts. Worth it for cars up to 5-10 years old.

2. Engine Protection— Critical during monsoons. If water enters the engine (hydrostatic lock), standard insurance won't cover it. Engine repairs can easily be ₹1-3 lakhs. This add-on costs ₹500-1500 per year.

Note: whether you have this add-on or not, your engine will be covered if your car has gotten into accident nevertheless

 

3. Consumables Cover — Nuts, bolts, engine oil, coolant, AC gas — these things get replaced during repairs but aren't covered by default. Small cost, saves ₹1,000-8,000 during a claim. But quite small add-on which makes it worth taking.

4. Return to Invoice (RTI)— If your car is a total loss (stolen or completely wrecked), without RTI you get the IDV which depreciates every year. With RTI, you get the original invoice value. Worth it for newer cars (1-3 years).

Note: this add-on is subjective, some might see value in it while others won’t, worth keeping for vehicles that have loans and high risk or theft or total loss.

 

Optional (depends on your situation):

 

5. Tyre Cover— If you drive a lot on highways or bad roads, could help

Note: usually covers four tyre replacements a year and again this is like engine cover, if your tyre is blown without accident then this cover helps otherwise tyres are covered under accidental damaged(damages that include vehicle body damages or scratches alongside tyre damage)

 

6. Key Replacement — Modern car keys cost ₹10,000-30,000 to replace. If you're prone to losing things, consider it.

Note: small add-on but sometimes comes bundled so nice to have.

 

Usually skip or could be considered for packaged deals:

 

7. Daily Allowance — Pays ₹500-1000/day while your car is being repaired. Sounds nice, rarely worth the premium.

Note: comes with limits on how many days are allowed and total compensation per day but definitely worth for the price charged for this.

 

8. Geographical Extension — Only needed if you're driving to Nepal/Bhutan/Sri Lanka or any other country.

 

The first four together typically add large amount to your annual premium. For the coverage they provide during a real claim, that's nothing.

I'm an insurance advisor and I think aggregators serve a real purpose. But there's a gap that most people don't see until they need to file a claim.

 

What aggregators do well:

- Give you multiple options in one place

- Let you compare premiums quickly

- Issue policies instantly

- Generally have the widest range of plans

 

Where they struggle:

- Cancellations and refunds can be a nightmare

- The customer care runs on scripts — they can't give you specific advice for your situation

- During claims, the support varies a lot depending on the insurer you picked through them

- If you went for the cheapest plan without understanding what's covered, that's where problems start

 

The thing is, if you know what you're looking for — the right IDV, the add-ons you need, the insurer with good claim settlement ratio — aggregators are a great tool. The problem is when people use them like Amazon. Sort by cheapest, click buy, done.

 

Insurance isn't a product where cheapest = best deal. If you go for the cheapest, you get the cheapest. You know what I mean?

 

That doesn't mean avoid aggregators. It means know what you need before you open the website. Check what add-ons are included, what the IDV is set to, and what the claim settlement ratio of that insurer looks like.

 

If you want help figuring out what to look for before you compare quotes, ask here. That's literally what this sub is for.

IDV stands for Insured Declared Value. In simple terms, it's the current market value of your car according to the insurance company.

 

Why does this matter? Because if your car is stolen or completely totalled in an accident, the IDV is the maximum amount the insurer will pay you. Not what you paid for the car. Not what you think it's worth. The IDV.

 

Here's how it's calculated:

 

Your car's ex-showroom price minus depreciation based on age.

 

Depreciation slabs:

- Less than 6 months: 5%

- 6 months to 1 year: 15%

- 1 to 2 years: 20%

- 2 to 3 years: 30%

- 3 to 4 years: 40%

- 4 to 5 years: 50%

 

So if your car's ex-showroom was ₹10,00,000 and it's 3 years old, the IDV is roughly ₹7,00,000 (after 30% depreciation). That's the max you'd get in a total loss scenario.

 

What most people don't realize:

- A higher IDV means a slightly higher premium. But it also means a higher payout.

- A lower IDV saves you ₹500-1000 on premium but could cost you lakhs during a  total loss claim.

- Some aggregators default to the lowest IDV to show you the cheapest quote. That's how they make their plans look cheaper.

 

My suggestion: keep the IDV as close to the actual market value as possible. The ₹500 you save today isn't worth ₹1-2 lakhs less during a claim. Consider it as the value you might want if your car would be taken away from you right now or within the next year.

 

If you have questions about what IDV your car should have, feel free to ask here.

Saw this happen in a real car insurance claim recently.

Somehow, either the person renewing the policy or the agent missed the fact that there had already been a claim in the previous policy year. The policy was still issued with an NCB discount that the customer wasn't eligible for.

When they later made a claim, it was rejected because of the incorrect NCB.

Sadly, by the time I found out about it, it was already too late.

After following up with the concerned person, I learned that if the issue had been caught earlier, it could have been resolved by paying the premium difference for the incorrect NCB instead of facing a rejection. Unfortunately, that wasn't possible anymore in this case.

And it didn't end there.

Since a claim had already been registered, they also lost their NCB for the next renewal, just like they would have if the claim had been settled. So they ended up with no claim payout and no NCB either.

The takeaway is simple: whenever you renew your motor insurance policy, just make sure the NCB mentioned on the policy matches your actual claim history. It's a small thing that can save you a lot of trouble later.

Acko and other insurers come under direct insurer version and policybazaar is a broker who provides multiple insurers on their platform.

Now there are multiple posts about clarity of cashless with their particular ASCs and there’s a way to check for all this before BUYING your insurance policy.

I’ve listed a few insurers’ direct links, hope it helps.

some are easy to access like; with city and make search: https://www.tataaig.com/locator/garage-locator ,
Easy with Pincode search: https://www.hdfcergo.com/locators/cashless-garages-networks

requires a bit of scrolling: https://www.icicilombard.com/cashless-garages

Will ask for personal details but definitely works (click for new car if you do not wish to put your car number): https://www.acko.com/garages/

And many more, you can visit https://www.policybazaar.com/car-insurance/cashless-garages/ as well for most of the insurers but I suggest you visit each of the insurer’s official portal by searching “XYZ insurance cashless garages” before buying an insurance policy for a brand new car or for renewal.

Note: there are cashless garages mentioned on policybazaar website during purchase as well but I find their mention a bit inaccurate sometimes, mentioning cashless everywhere for policies of UNITED INDIA and others. United India has a definitive cashless garage list here: https://uiic.co.in/web/garage-details

Imagine you’re driving on a highway 100kms away from your city/town and suddenly you lose control of your car and crash into the barrier, fortunately you’re safe and sound, no major injuries. What would be your response in this scenario?

Imagine you’re driving on a highway 100kms away from your city/town and suddenly you lose control of your car and crash into the barrier, fortunately you’re safe and sound, no major injuries. What would be your response in this scenario?

Imagine you’re driving on a highway 100kms away from your city/town and suddenly you lose control of your car and crash into the barrier, fortunately you’re safe and sound, no major injuries. What would be your response in this scenario?

hey guys!! This is for everyone using canva trial, please remove ur card details along with canceling the plan because they do charge if u have ur card details stored, i ignored this and they charged me even tho i canceled the plan prior to expiry.