India’s insurance industry is expected to reach $280 billion by 2020. This push has been driven by increasing awareness, new innovative products available in the market, and more distributed channels. India’s non-life insurance segment has clocked a sturdy growth over the last few years. Health, Motor, and Crop Insurance have emerged among top non-life insurance segments.
A car insurance policy is an agreement between the insurance company that safeguards your vehicle from adverse unforeseeable circumstances. Getting yourself acquainted with the policy terms and conditions is imperative before buying your car policy and it’s easier online. A good car policy is an important financial protection against accidents and other adverse circumstances.
Simply put, in a car policy, you pay the premiums and the insurance company in return, covers for the loss or damage caused to your car. Most of the insurance companies in India have tie-ups with car manufacturers and they offer car owners instant quotes. While buying your car insurance, which is mandatory in the country, there are a few things that you should look out for. Here is a quick list to make it easier for you:
Understand your policy
Third-party car insurance that covers third-party liabilities is mandatory by law. On the other hand, a comprehensive policy provides a wider coverage giving you financial protection for damage, theft, self-ignition, fire etc. For instance, car policy at Finserv MARKETS protects you against cases of theft, burglary, and man-made disasters while also covering the legal liabilities, fees and cost of proceedings in the case of a third-party liability.
Be familiar with the jargon
Understand the commonly-used terms used on the car insurance policy so that you are better aware of your insurance coverage. For instance, No Claim Bonus (NCB) implies that if the owner of the insured car or third-party does not raise a claim in an active policy year, the owner will be entitled for a discounted premium on the next renewal. Also, it is possible to get this bonus transferred if you have sold an old car and bought a new one. When buying a policy, check if your insurer offers this transfer. Like NCB, zero depreciation car insurance is another good concept to read about before buying a policy.
Know the value of your car
The premium of your car insurance is based on the market value of your vehicle, and its calculation also considers the depreciation in the car’s value over the years. When buying a policy, make sure that you know these values to get a good deal from the insurer. You can always reduce the amount by negotiating individual sections on your insurance renewal before buying it.
Find out your renewable date
While going through your car insurance policy, you must find out the lapse date of your policy. Knowing the lapse date is crucial so that you can get your policy renewed before the expiry of the tenure. It is always better to renew your car policy well within time. Moreover, it is also very risky to drive your car without an insurance policy to support it.
Understand the features of your policy
While going through your insurance policy, note all the features the policy offer. You might want to add or delete a few features to your insurance renewal policy. Say, for instance, you are spending more on coverage for personal accident privileges, but you already have a separate policy that has got you covered for such instances. Once you know this, you can easily choose to renew your car insurance policy without that benefit, which in turn, would reduce the overall premium payable. Add-on plans, as the name suggests, offer insurance for several damages or events in addition to own damage and third party liability insurance that a regular motor policy offers.
Find substitutes and compare
And finally, do compare car policies offered by different companies. Usually, there is a significant price difference between the policies of different companies. Go for the one that best fits your car and your requirement.
The market share of private companies in non-life insurance sector is steadily increasing, reaching 50.40% from 13.12% in the past 15 years. Moreover, the rising internet penetration has improved awareness and accessibility, catapulting the demand for insurance products. In tune with the change in demand, today, you can easily buy an insurance policy online with the help of products like Bajaj Allianz Car Insurance available on Finserv MARKETS, that protects your precious car against any adverse circumstances.
Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. We understand that every individual is different and thus when you plan to achieve your life goals or shop for the gadget of your dreams, we believe in helping you Make it Happen in a few simple clicks. Simple and fast loan application processes, seamless, hassle-free claim-settlements, no cost EMIs, 4 hours product delivery and numerous other benefits. Loans, Insurance, Investment, and an exclusive EMI store, all under one roof – anytime, anywhere!