Often most of us plan to buy car insurance online but get confused with so many options that are available online. Check-out some important tips to find the best car insurance in India online.
If you are not aware of the factors that are taken into consideration while framing a car insurance quotation, you may never be able to solve the puzzle. In order to find the most suitable car insurance cover, you have to read the policy documents and compare different quotes from some of best vehicle insurance companies and select the one that works just right for you.
So, before you make the purchase, take note of some of the best practices to follow while shopping for your car insurance policy –
1. Select the Type of Car Insurance Plan
You will see that there are two kind of motor insurance plans that are available- One is the basic one i.e. third-party liability insurance and the second one is a comprehensive plan.
To be eligible to drive on our city roads, you need a minimum of third-party cover. However, you should buy a comprehensive cover for enhanced protection.
Third-party insurance covers risks related to a third-person or property from the insured car. Whereas, comprehensive insurance covers risks related to a third-party as well own damages in case of an accident, theft or collision. For this reason, the emphasis on a comprehensive motor policy.
2. Factors That Affect Car Insurance Premium
Most of the motor insurance policies look similar, but when you read the blueprint you get to know the difference. Before making the purchase make sure that you go through the policy inclusions and limitations, as these factors can affect your car insurance premium. Some of the factors are listed below:
- Area of Car Registration: Usually, car insurance companies charge a higher premium from applicants in urban areas, as there are more chances of theft, accidents, vandalism etc.
- Risk Factors: Car insurance premium is determined by the age of the car, its brand name, fuel type, engine displacement etc. The depreciation value of a car also affects the premium.
- Credit Record: If you maintain a good credit history, it will have a positive effect on the cost of the premium.
- Driving History: If your driving records indicate good driving history and no accidents, then you are likely to pay a lesser premium.
Ways to reduce insurance costs
- No-Claim-Discount: NCB is the reward that the insurer pays to you for not filing a claim in during the policy term. If you are able to maintain a claim-free-record, you can earn NCB from 20 to 50 percent on the premium.
- Deductibles: Motor insurers let you pick your deductibles and you can choose to add them as a supplement to reduce the premium.
3. Method of Purchase
The best way of buying a car insurance policy is getting it online. It helps you in finding a better deal for a similar plan, in comparison to the offline method.
When purchasing it online, you can download the policy documents, unlike the offline purchase where you have to wait for the insurance documents to arrive at your home via post. It also eliminates that chances of you being misled by an agent.
The same applies for renewal. For instance, you have a TATA AIG plan, and you need to renew it. You don’t need to waste your time with agents, all you can do is visit their website, select the Tata AIG Car Insurance Renewal option and get it done.
4. Cashless Repair Facility
If your insurance plan includes cashless repair facility then it will save your time and effort in running from pillar to post and following-up with the insurer over emails and visiting the insurer for reimbursement.
Cashless facility means you will have to visit the workshop with which the insurer has a tie-up with. It is one of the most convenient and useful benefits of a motor insurance policy.
5. Customer Support
One of the most important parts of insurance policy is its after-sale services and customer support. Choose an insurer that is reliable in terms of after sale services and offers 24×7 customer support.
Garner reviews online or from word of mouth. Also, read up on customer support policies and know their contact points at the time of claim.
Check-out the company’s No-claim-discount policy. NCB will be offered if you don’t make any claim for an entire year. Generally, you earn a bonus between 5 and 10 percent at the time of renewal. Sometimes, it is also carried forward.
7. Easy Claim Settlement Process
Opt for a company that follows an easy motor claim procedure. Read the policy documents and understand the procedure. You can go through customer reviews and their experiences to make an informed choice.
8. Add-on Covers
It is wise to look for some extra coverage such as:
Zero depreciation cover: This one will allow getting reimbursement as per their actual value of the parts replaced, instead of the depreciated value.
NCB Protection Cover: This one will allow you to retain your No-claim-bonus even if you have made claims in the previous year. however, there is a limit applicable to the number of claims.
Hydrostatic Cover: It recompenses for any loss or damage to the four-wheeler due to mishaps such as waterlogging.
Moreover, you can opt for additional frills such as emergency roadside assistance, fuel assistance in case of an emergency.
9. Car Valuation
The agreed value of your car as per the value agreed between the insurance company and insured in case of a constructive total loss and total loss for the particular policy period.
Though, many of us declare lower Insured Declared Value to reduce the premium amount. But this can lead to considerable loss and prove to be a double-edged sword at the time of claim. In order to save a small amount of premium by declaring a lower IDV can lead to a greater loss in case of car theft or an accident claim.
By comparing different car insurance policies and by doing a little bit of research, you can find an adequate policy and also save some money on the premium.