All thanks to India's growing population, car accidents have become a daily spectacle here. Moreover, despite being extremely careful and alert, we can get involved in minor mishaps, and our car has to bear the brunt. As a result, you might decide to ask some of your wisest friends' help, and they recommend you buying car insurance online. But, what's it anyway?
Car insurance is an agreement for a vehicle in which the insurance provider agrees to pay for your financial losses resulting from a specified unprecedented event. Hence, a motor insurance policy can serve you a lot more than you think. For instance, it provides coverage against impairment to your vehicle resulting from theft, explosion, accident, riots, strikes, vandalism and so on.
Things to consider before buying Car Insurance online in India
Now that you're aware of car insurance and have acknowledged its importance, it's time to move on further. So, here are a few determinants that you should acknowledge before buying a car insurance:
1: Recognizing your Specifications
You don't have to be an automotive geek to understand the common threats associated with your car's care. Instead, it requires a basic assessment of the surroundings of your automobile and the customary dangers confining it. For instance, you should reflect upon questions like, is your locality prone to catching fire? Are explosions fairly common in your vicinity? Have there been instances of robbery in recent times?
Buying insurance against flood-related atrocities while living in a drought-prone area wouldn't be a great idea. So, addressing these questions will give you a fair idea about the type of insurance suitable for your car and prevent any redundant investments.
2: It is obligatory to have a third party insurance
A third-party insurance policy is specifically designed to cover any bodily injuries or property damages to a third party caused by your car. According to the Indian motor vehicles act, having a third party insurance is essential and cannot be compromised at any cost, failing which the perpetrators call for a hefty penalty.
Hence, we'd advise you to save yourself the trouble, have an insurance cover and carry it every time you go for a drive.
3: Seek an all-inclusive cover
While comparing these insurance policies online, ensure that the policy encompasses all the necessary domains of your interest. For example, comprehensive car insurance covers both third party liability as well as damages to self. However, one setback of the third party insurance is that it will secure only against the losses that may occur to any third person's property and does not include the damage caused to your vehicle.
As a result, you cannot claim any coverage for the same. However, having a complete cover will ensure security and protection in its most reliable form.
4: Examine the brand before taking the plunge
There's a reason behind the skyrocketing sales of Lamborghini and Ferrari. Yes, it's the branding. These brands speak for themselves, emphasizing the importance of investing in a well-established brand. Since you have already invested in your favourite car, why not take it a step ahead and look for quality insurance companies too?
So, always choose a good quality insurance company for your car as it helps you sail through the process and permits swift progress in the long run.
5: Insured Declared Value
IDV is the amount paid to you by the insurance company if your loss is irreversible or tough to cover up. For example, if your vehicle gets damaged beyond repair or if your car gets stolen and you have no resort, IDV makes up for your losses.
But, keep in mind that the Insured Declared Value is the current market price of your vehicle and not the resale value of the car. For instance, let's suppose you purchased your vehicle for 10 Lakhs INR. Now its IDV after three years would be 7 Lakhs INR, owing to the steep decrease in the demand for the vehicle due to the emergence of newer models and the natural wear and tear of the car after its usage.
6: Comparing Quotes in Online Insurances
Each time we head over to buy something online, we don't fail to compare its price across various platforms before purchasing it. Moreover, it helps us in drawing a detailed conclusion and ensures a few savings as well. The same principle can be applied while deciding on the right policy too. So make sure that you compare policies with similar covers and not compare apples to oranges and lose out on the right set of deals.
For instance, it won't make sense to compare a standalone cover to a comprehensive cover consisting of several additional features. Moreover, the cost of the policy would vary and create discrepancies. Hence comparing policies of a similar scale can help us make an informed decision.
The company's online reviews and service quotient is worth considering too.
7: Flexibility of policy and guidelines
We often get stuck in insurance companies despite being dissatisfied with their service due to their stringent guidelines. In short, they indirectly force you to stay put to keep their juices flowing. While the initial agreement seems comprehensive and caters to all your needs, the chances of having to include new covers can always arrive at a later stage.
Hence, we'd recommend you never to make a lifelong commitment to any policy company and keep your options always open.
8: Exciting Discounts in the form of NCB (No Claim Bonus)
We all love discounts, and when we get a chance to avail them, we shouldn't be shying away! NCB is the reward given by the insurance company for not raising any claim requests during a policy year. It's your reward for keeping your car safe and away from all the dangers, and it keeps getting better!
"According to IRDA (Insurance Regulatory and Development Authority), if you don't file a claim for five consecutive years, you can avail of NCB discounts for up to 50% on premium. Sounds like a steal? All you've to do is to make sure that your online insurance policy covers the NCB program, and you're good to go!"
Frequently Asked Questions
Q 1: Is buying a car without insurance legal in India?
Ans. No, through the provisions of the Motor Vehicle Act India 2019, you can't drive an uninsured vehicle in any part of the country.
Q 2: Is buying car insurance online safe in India?
Ans. Yes, it's entirely safe to buy a car insurance online in India. In fact, most of the trusted companies are already offering their insurance services online.
Q 3: How to get the cheapest car insurance quote?
Ans. You can visit various online websites such as Policybazaar, Insurance dekho, Bajaj Allianz, etc., to compare and choose the best car insurance online quotes.
Q 4: What to consider when buying a car insurance?
Ans. You don't have to be an expert to buy car insurance online in India. All you've to do is keep essential things in your mind like the best prices, inclusive features, etc. You can check out our tips for buying car insurance for more detailed information, as mentioned earlier.
Now, we're hopeful that you're ready to choose the best car insurance policy for your vehicle. Remember to never fall for some gimmicks before buying car insurance online. All you've to do is know your insurance policy in and out. If you've any doubt regarding the policy's terms or conditions, you can always make a phone call to the company's customer support team.
Lastly, if you found this article insightful, we'd recommend you check our other automotive blogs on Carorbis. If you're looking for some auto detailing and car care products online, then we've got you covered with that as well.