Buying a car is a dream come true. But untoward incidents happen. Most of us tend to put off these unpleasant thoughts and postpone the all-important duty of purchasing a comprehensive car insurance policy. Investing in a car insurance policy is crucial to safeguard yourself against the financial risks of car ownership. No matter how experienced a driver you are, there are some risks on the road that are beyond your control. Risks like accidents, natural and man-made calamities, theft etc. can be absolutely Detrimental to both, your car and finances. Having a car insurance policy with a wide coverage is an important pre-requisite for car ownership. In this guide, we have listed out everything you need to know about car insurance, so that you can make an informed purchase decision.
Types of Online Car Insurance Plans
Third Party Liability Car Insurance
A third party liability car insurance covers the damages or loss caused to a third party individual or property. It does not cover any personal injury or damage caused to your car in case of an accident. It is the minimum coverage offered by insurance companies in India. It has a lower premium compared to comprehensive car insurance. However, it should not be the only coverage you opt for, as it does not protect you from the financial implications of personal damages.
Comprehensive Car Insurance
As the name suggests, a comprehensive car insurance offers complete financial protection against damages caused to your own car in addition to any third-party loss or damages. Moreover, a third party car insurance offers coverage against a wide range of risks such as theft, accidents, vandalism, natural calamities etc. Although comprehensive car insurance comes with a higher premium, it is an investment worth making.
Factors That Affect Car Insurance Premium
Insured Declared Value or IDV is the market value of your car which is derived after deducting the depreciation. It is the maximum compensation you can claim from your car insurance policy. The higher the IDV, the higher will be your car insurance premium.
As a person gets older, he/she becomes more experienced driver and chances of him driving recklessly usually decrease. Hence, experienced and older drivers can get a discount on the premium.
At times, a discount on premium is offered to people belonging to certain professions such as doctors, chartered accountants etc.
4. Claim History
If you don’t make any claim during your policy period, you can get a discount on premium known as the No Claim Bonus or NCB. The NCB increases progressively for every claim-free year with up to 50% discount.
Key Benefits of Buying Car Insurance Online
A car insurance policy offers a wide range of benefits which makes it a utility product for car owners in India. The key benefits of car insurance are listed below:-
Compensation for any loss or damage caused to the insured car.
Get coverage for accidental loss or damage caused to your car due to accidents, fire, theft, self-ignition, explosion, lightning, riots, terrorist activities or natural calamities.
Personal accident cover
Complete coverage against financial losses arising from injury or death of a third party or damage to the property.
Tips To Choose the Right Car Insurance Online
1. The Right Form Of Coverage
As you already know, car insurance is available in two variants - third party and comprehensive. Many car owners opt for third party cover as it is mandatory by law and is relatively cheaper. However, having only a third party cover is not recommended. Only a comprehensive car insurance policy and protects you from major financial losses. So make sure to opt for a comprehensive car insurance policy and secure maximum coverage for your precious car.
2. Take Your Time To Compare
It’s important to compare at least a few car insurance options as the coverage and premium may differ from insurer to another. You can use car insurance calculators to get an idea about your car insurance premium before buying a policy.
3. Check your IDV
Ensure that the IDV mentioned in the policy is close to the current market value of your car. It’s best to opt for a car insurance policy that offers the maximum IDV for your car. In case of theft or total damage of your car, you will receive the IDV as compensation.
4. Choose The Voluntary Deductible Carefully
Voluntary deductible is the amount that you are willing to pay from your pocket at the time of the claim settlement. Every car insurance policy has a voluntary deductible, but the percentage varies. A good car insurance plan should have a good balance between the premium and the deductible. So make sure to choose the voluntary deductible wisely. So that you do not face any inconvenience at the time of claim settlement
5. Register With An Automobile Association
If you register your car with a notable automobile association, you can get discounts on car insurance. Hence, if you haven’t done so already, you should do it now.
6. Check The Claim Process
Before you buy a car insurance policy make sure that it delivers when you need it the most, which is that the time of claim. Ensure that the claim settlement process is quick and hassle-free to avoid any hitches during the time of claim settlement.
7. Choose A Good Insurer
The credibility of your car insurance policy is only as good as the company offering it. So make sure to buy a car insurance policy from a leading motor insurance provider with a good reputation. Consider factors such as claim settlement ratio, quality of customer support etc. before choosing an insurance provider.
8. Check The Renewal Process
Finally, ensure that the car insurance renewal process is quick and convenient. Ideally, you should be able to renew car insurance online within a matter of a few minutes. Car insurance renewal is as important as buying a new car insurance policy.
If you keep the above points in mind, you will surely be able to choose the best insurance policy for your precious car. Moreover, if you buy car insurance online from Finserv MARKETS you can enjoy additional benefits like cashless claim facility across 4000+ garages, quick claim settlement, round-the-clock assistance and much more. To buy or know more aboutCar insurance visit Finserv MARKETS.
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