How much vehicle insurance a family needs
Sizing vehicle insurance is where most households either overpay or under-protect. Insured declared value should reflect what the vehicle is actually worth; padding it does not increase what you can claim.
The sizing rule
Insured declared value should reflect what the vehicle is actually worth; padding it does not increase what you can claim.
Adjusting it for your household
Rules of thumb are starting points. A single-earner family with young children and a home loan needs more than a dual-income household with no dependants. Count what would still have to be paid if the worst happened — EMIs, school fees, living costs — and size the cover against the gap, not against a formula.
Reviewing it as life changes
Marriage, a child, a home loan, a job change, a parent moving in — each of these changes the number. A cover level set once and never revisited is usually wrong within five years.
Where FamTally comes in
FamTally holds every policy the family has — vehicle insurance included — with sum assured, premium, frequency, renewal date and the members it covers. It totals your cover so gaps are obvious, puts premiums into your monthly cashflow, and reminds you ahead of each renewal. Free to use.
Stop doing this in a spreadsheet
FamTally keeps your loans, income, expenses, assets, insurance and goals in one place, forecasts five years ahead, and answers questions about your own numbers. Free, and built for Indian families.
Start freeQuestions people ask
What does vehicle insurance cover?
Third-party liability, which is mandatory, plus own-damage cover if you buy comprehensive.
How much cover should we take?
Insured declared value should reflect what the vehicle is actually worth; padding it does not increase what you can claim.
What happens if it lapses?
Annual and legally required. A lapsed policy makes the vehicle illegal to drive and voids own-damage cover.