Today, many people prefer buying car insurance online. Undoubtedly, it is quick and easy. However, there are certain things you should consider while buying online car insurance in India. Read further to know more.
Having your car makes daily commute convenient. You need not to rely on the public transport system as you can drive through your car wherever you want. But, while driving a car makes commuting easy, it also has an element of risk, especially on Indian road as road conditions are poor. It is one of the common reasons why road accidents occur in India.
To ensure the safety of citizens, the government mandates the use of vehicle insurance, be it a four-wheeler or a two-wheeler. If you’ve got a new car, you must have the coverage. Otherwise, it is a criminal offence.
You can buy car insurance, either offline or online. But several experts recommend people to buy online car insurance as the process easy and quick. Here’s are a few things to consider if you buy car insurance online:
Assess your needs:
Many people purchase insurance without giving it a thought. They often look at premium rates and decide to go ahead with a policy. This results in inadequate protection for your vehicle.
You need to identify what type of insurance cover you need – Third-party or Comprehensive Car Insurance. If you’re looking for basic third-party coverage and your vehicle is old, then it is best to opt for the third-party insurance. In either case, you can select a Comprehensive Insurance if you own an expensive car, which needs overall protection.
When you search for car insurance policies, you will come across various brands and aggregators providing best deals. You can compare multiple plans online without approaching any insurance broker or a company.
Insured Declared Value:
This value determines the maximum amount you can claim in case of total loss or theft of your vehicle. It is the current market value of your car. In case of a total loss of the car, the insurer will provide a sum assured, i.e. the insured declared value by calculating the difference between the manufacturer’s listed selling price and depreciation. IDV is an essential factor in determining the premium at the time of policy purchase and renewal.
Rider or add-ons are the extra coverage that you can avail when you have comprehensive car insurance. These include zero depreciation cover, engine protection, key replacement, roadside assistance, and so on.
When you buy online car insurance, you may get intimidated by the policy benefits. But as much as you give importance to the benefits, you must also check for the list of exclusions. In a comprehensive car insurance policy, some of the exclusions include
- Loss or damage to the car dues to illegal purposes,
- Loss or damage due to war terrorist attack, hostilities or nuclear war
- Damage to the car if it was driven under the influence of drug or alcohol
- Damage to the car when the insurance policy was expired
- Damage to the car due to oil leakage
No Claim Bonus:
It is the percentage of bonus which you can avail for every claim-free year. You can avail bonus at the time of policy renewal. You should note that used cars do not have any claim bonus as the ownership changes. Insurance company offers NCB in the form of premium discount or increased sum assured by a certain percentage.
Buying online car insurance in India is the best as it is cost-effective, saves your time, and you can avail great pricing. If you’re planning to buy car insurance online, make sure you consider the above points.