How to Choose a Car Insurance Policy Online?
New Delhi : Selecting the right car insurance policy is important to protect yourself from financial loss resulting from third-party claims and car damage. Therefore, doing a lot of research is advisable to find the best policy that will suit your needs.
Numerous car insurance policies are available in India, depending on the customer's needs. However, identifying the best plan can be a little daunting, especially due to the many available choices.
Scroll down to learn how to choose an online car insurance policy that meets your needs.
A Step-by-Step Procedure for Choosing a Car Insurance Policy Online
Here are the 7 steps you need to follow to choose the best car insurance policy online:
Step 1: Assess Your Needs
Begin by assessing the type and amount of coverage you require from your car insurance. Some factors to consider when deciding on coverage include:
● The state of the roads in your locality
● Locations to which you often drive
● Car theft cases in your area
By assessing these factors, you can decide what you require from your car insurance. For instance, if you live in a region prone to floods, then go for a plan that covers water damage to the engine.
Step 2: Compare Different Plans
After you identify the type of insurance you need, compare insurance policies from different companies. Some areas to consider include the sum insured, what is covered, what is not covered, available options, claim procedures, and deductibles. Choose a plan that gives you the most benefit for the premium.
Step 3: Explore Add-ons
Add-ons are additional products that offer protection for incidents not covered under base policies. They are available only if you have comprehensive car insurance. It is also important to inquire from your insurer about the available additional products and make a selection based on your requirements.
Step 4: Check the Claim Process
One of the main reasons people buy insurance is to receive money as soon as possible after the accident happens. You must ensure that the insurer provides an easy and quick way of claiming in case of an accident to avoid a lot of trouble.
Step 5: Review the Claim Settlement Ratio
The claim settlement ratio (CSR) is the ratio of the number of claims settled by the insurer to the number of claims received in a year. It is best to select a company with a high CSR, as this will mean your claim is more likely to be approved.
Step 6: Provide Accurate Information
Always provide correct details about your age, driving history, and other information. If you provide false information to lower your premium, your claim may be denied, or the policy may be cancelled.
Step 7: Read the Policy Terms
Before finalising the policy, thoroughly read the terms and conditions to ensure they suit your needs. This will help avoid any legal issues when filing a claim.
Tips for Comparing Car Insurance Policies
Here are some key tips you can consider while comparing car insurance policies for yourself:
● Third-party Insurance is Mandatory
According to the provisions of the Indian Motor Vehicles Act and Road Safety Act, third party car insurance is mandatory for every car owner. Driving without it is a legal offence and can result in heavy fines.
Third-party insurance covers damage to third-party cars and physical harm. However, it does not include liability for damages to your car, whether you drive it or not.
● Opt for Comprehensive Coverage
When comparing insurance plans, make sure they cover both third-party liability and the policyholder’s car. Such comprehensive car insurance policies should also cover calamities like fire outbreaks, theft, and even riots in the case of man-made disasters.
While third-party insurance is cheaper than comprehensive coverage, the extra protection of the full policy is worth the cost.
● Focus on Services, Not Just Premium
While lower premiums might seem appealing, it is crucial to consider the quality of service and the insurer’s reputation. Look for companies with good customer reviews and a high claim settlement ratio to ensure prompt assistance and reliable service.
● Insured Declared Value (IDV)
IDV refers to the maximum amount the insurer will pay if your car is stolen or damaged beyond repair. It is not the resale value but the amount the insurer sets based on the car’s market value. While comparing policies, ensure the IDV the insurer offers is close to your car’s current market value for better coverage.
● Use a Car Insurance Premium Calculator
The car insurance premium calculator lets you quickly estimate your premium by inputting your vehicle details, preferred coverage, and add-ons. It helps compare various policies, ensuring you get the most suitable plan within your budget.
● Add-On Covers
Additional covers, or riders, can enhance your policy’s protection. These include zero-depreciation cover, roadside assistance, and return-to-invoice cover. When comparing policies, choose an insurer that offers the add-ons that best suit your needs.
● No Claim Bonus (NCB)
No Claim Bonus (NCB) is a premium discount insurers offer for not making any claims during the policy year. It accumulates yearly and can offer up to a 50% discount after five claim-free years. Ensure the insurance provider offers an NCB program and includes the discount in their quotes.
● 24/7 Customer Support
Reliable customer support is crucial when selecting an insurance provider. Companies like Digit Insurance offer round-the-clock assistance, even on national holidays. This ensures you can address any issues or concerns at your convenience.
● Network Garages
Network garages are approved repair centres affiliated with your insurance provider. Here, you can get your vehicle repaired due to accidental damage without paying out-of-pocket. Check how many network garages are available with your insurance provider to access more cashless repair services.
Choosing the right car insurance policy online requires careful consideration of your specific needs and a thorough comparison of available options. By evaluating your requirements and checking the essential factors, you can find a policy that offers protection and value.
