In today’s fast-paced world, patience is a virtue seldom seen. It’s very common to have multiple things occupy your mind, which leads to impaired concentration when coupled with the need to arrive at one’s destination quickly, leads to impaired concentration. There is nothing more lethal than a lack of concentration and awareness on Indian roads. This, when combined with the haphazard condition of our roads and poor understanding of traffic rules by the public, turns out to be the perfect recipe for disaster.
Owning a car has evolved from a status symbol to an article of necessity. Coupled with attractive offers and gifts, owning your dream car has never been easier. At the same time, protecting it from untoward mishaps on the road is becoming more difficult by the minute due to the explosion of vehicle ownership. Be it road rage or minor lapses in concentration, minuscule mistakes have the potential to cost you big bucks. Thus, investing in the right car insurance is the need of the hour. It is wise to conduct extensive research before choosing the insurance policy of your choice. This article aims to guide you through the process of purchasing the car insurance policy of your choice online.
- Getting car insurance is mandatory as per Motor Vehicle Act, 1988.
- You can get insurance cover for the individual parts of your car, like tyres and engine as well.
- Cash-less insurance policies tie up with certain garages and pay the insurance amount directly to them. This way, the car owner will not have to pay the bills and wait for reimbursement from the insurance provider.
Purchasing Car Insurance Online
Nowadays, purchasing the best insurance coverage for the car of your dreams can be done through a few clicks of your mouse in the comfort of your home. You no longer have to deal with all the cumbersome paperwork previously associated with insurance policies. All you have to do is visit the website of any insurance policy to read up on the benefits they’re offering before choosing their plan. We will now see a brief overview of this whole process.
Step 1: Conduct Extensive Research
With the plethora of options on offer, there is no need for you to settle for anything that doesn’t match your expectations. It’s the car of your dreams, after all! It is imperative to conduct extensive research about the various policies on the market before coming to a conclusion. There is no need to rush your decision. A few parameters you should keep in mind before reaching a decision are,
- Coverage: It’s important to choose a plan that pays enough to cover the worst-case scenario. After all, you’re paying a premium regularly to make sure you don’t spend too much out of your own pocket during accidents. Hence, it’s imperative to choose a policy that offers proportionate coverage to the value of your car.
- Customer Service: Due to the wide variety of plans on offer, insurance companies now strive to make their claims process as quick and customer-friendly as possible. Read up on reviews left by users to get a general idea of the insurance company you’re dealing with.
- Price: It’s always good to spend some extra energy and time on finding the policy with the cheapest premium that satisfies almost all of your requirements.
Did you know? [H2]
It is mandatory for second-hand cars to get insurance as well.
Step 2: Selecting The Type Of Policy
There are two types of insurance policies on offer on the Indian market. They are,
- COMPREHENSIVE CAR INSURANCE POLICY: This type of insurance policy provides coverage for both self and third-party inflicted damages. The premium to be paid is slightly higher. It’s better to opt for this type of car insurance.
- THIRD-PARTY CAR INSURANCE POLICY: This type of insurance policy is mandatory for all vehicles in India. This provides coverage against only third-party inflicted damages. The premium to be paid is lower.
Step 3: Declaring An Idv
This is the most important step while purchasing car insurance. Declaring an IDV(Insured Declared Value) refers to setting the amount the insurance company is liable to pay you in case of any untoward event. The premium that you’re expected to pay increases with respect to the IDV you set, so it’s necessary to be wise when doing so.
Step 4: Choosing Add-Ons
If you’ve opted for a comprehensive coverage policy, you have the option of choosing various add-ons. These add-ons come with an added cost to the existing premium, so be wise while choosing what would suit your needs the best. Some examples are,
- Nil-depreciation cover
- Personal loss cover
- Engine protection cover
- Consumables cover
- Tyre cover
Step 5: Checking Policy Documents
Once you’ve decided on a reputed Insurance Provider and their policy, it’s imperative to read their policy-related documents thoroughly. It’s best to read the fine print as meticulously as possible to see if the insurance policy satisfies your necessities. This step is essential to resolve any conflicts of interest that may arise during claims in the future.
Step 6: Documents Required To Purchase Insurance Policy
You are required to enter in basic information to purchase the insurance policy of your choice. These documents are,
- Personal details- Name, Date of Birth, Gender, Photo, Address proof, Driver’s license.
- Details of your Vehicle- Vehicle make and model, Vehicle Registration Number, Chassis number, RC book.
Step 7: Make Online Payment
Once you’re done choosing your policy and submitting the necessary details, you can go ahead and pay the premium that has been decided. This payment is usually paid through credit or debit cards, depending on what the insurance provider accepts. Follow similar payment protocol for renewal/extension of your policy too.
Step 8: Take A Copy Of Your Insurance Policy
As soon as the payment is processed, you are bound to receive a copy of your insurance policy via E-mail. Check for any discrepancies regarding the personal and vehicular details that you uploaded. Upload your insurance policy to your DigiLocker, and be sure to take a printout to carry with you while driving your vehicle.
Did you know?
You can install anti-theft devices in your car to reduce the premium amount.
Words to Remember
- IDV – Insured Declared Value – the value of the car that owners declare to the insurance provider.
- No Claim Bonus (NCB) – Some insurance policies reduce the premium by a nominal amount in case the car owners have not raised any claims for a long time. This is a benefit given to vehicle owners because they have paid the premium properly and yet have not claimed the insurance.
- Zero depreciation cover – after an accident, some parts of the car are replaced. The insurance provider deducts the depreciation on the old parts and then pays the claim. With a zero depreciation cover, the insurance provider will not deduct the depreciation before paying the claim.
Getting car insurance is mandatory under the Motor Vehicle Act of 1988. The minimum cover that you need as part of your 4-wheeler insurance is third-party coverage. Make sure to compare the quotes from different insurance providers and choose the one that best fits your needs.
Frequently Asked Questions (FAQs)
Yes, as per the Motor Vehicles Act 1988, regardless of the age of the vehicle, every car needs to have four-wheeler insurance.
Auto insurance is mandatory for all types of vehicles. That includes CNG and LPG cars as well.
No, that will not be possible. No-claim bonus can be transferred from one insurance provider to the other, but the no-claim bonus will lapse if the owner changes.
Generally, you can only raise a claim against zero depreciation insurance up to 2 times.
Yes, due to mismatch of documents, non-disclosure of important information other dishonest acts, the insurance provider can refuse to renew the car insurance of any car owner.