After buying our dream car, purchasing a comprehensive car insurance policy is the first thing we should do. It provides us with financial assistance when the car needs repairs or maintenance. In India, having a vehicle insurance policy is mandatory by law. The Motor Vehicle Act 1988 makes it compulsory for a car owner to have a third-party car insurance policy in India.
Buying a car insurance policy in earlier times required an appointment with the insurance agent or a visit to the insurance company, which was time-consuming. But in modern times, we can buy comprehensive car insurance online at the click of a few buttons. Once we have decided to buy an online car insurance policy, we should keep certain things in mind to get the right policy that suits our needs and budget.
Comprehensive research
One of the advantages of buying an online car insurance policy is that there is no shortage of options available to us. Comparing different online car insurance policies using free tools like the acko car insurance policy tool will often help you choose the best suitable plan per your needs.
Adequately satisfy your insurance requirements
Although it is impossible to correctly predict what you will need in car insurance features, we can at least figure out the most obvious risks and choose the features accordingly with proper deliberation. For example, if you happen to live in a locality with a waterlogging problem, you should opt for certain engine protection features in the policy.
Choose the correct insurance type
Car insurance policies are generally of two distinct types- third-party insurance cover and comprehensive insurance cover. As mentioned above, it is mandatory to have at least a third-party insurance plan, but in reality, a third-party insurance plan is not advisable since it is inadequate, and we should always opt for a comprehensive car insurance policy. It provides us with all-around protection, including the third party, in case of repairs and mishaps.
Add-on covers
Add-ons are particular riders that are attach to a base car insurance policy. They primarily provide specific features along with the original car insurance policy features. Add-ons can be a great way to customise the insurance policy plan to suit your particular needs better, but you also have to be careful as too many add-ons can vastly increase the premium value of the policy.
Cashless facility
The cashless feature is another modern addition to the online insurance policy industry. In essence, the insurance company will settle the claim directly if the car repair shop has a tie-up with the insurance company. For example, imagine a scenario where your insure car is damage. You take it to the repair garage. After fixing the car, the garage sends the bill directly to the insurance company, which will pay for the repair without you having to pay anything from your pocket.
IDV
Insured Declared Value (IDV) is the estimate market value of the vehicle insured by the insurance company. If the car is involved in an accident and is destroy while under insurance, the insurance company is bound to pay the IDV value to the claimant.
Now there are certain caveats attached to this. Although the insured value may be X amount when the policy was bought, the insurance company will gradually lower the IDV value, citing depreciation costs. Another thing to remember is that the higher the IDV value, the higher the premium rate.
Deductible amount
The percentage of the claim that the claimant is willing to share is the deductible amount. In other words, while selecting a specific car insurance plan, you can choose to pay a portion of the claim out of your pockets. The primary goal of this is to reduce the cost of the car insurance premium.
No Claim Bonus
A no-claim bonus is a discount the insurance company provides when the policyholder has not made any insurance claims for an entire year. It can be accumulate up to a maximum of 50%.
Insurance company history
When choosing car insurance online policy, it is important to look for renowned insurance companies. New insurance companies with no industry experience may offer lower premium rates, but they do not necessarily provide a seamless service. You might want to opt for an established insurance company for a hassle-free service or study the claim process of a new insurance provider in detail before opting for it.
Claim Settlement Ratio
The ratio of claims settle by the insurance company to those it received during a fiscal year is known as the claim settlement ratio. It might assist you in evaluating an insurance provider’s dependability.
Though, it is important to mention that the insurance company does not resolve certain claims because they are fraudulent. So, we must exercise caution when examining the claim settlement statistics of a specific insurance company.
In conclusion
Readers can use the above suggestions to purchase online car insurance that meets their demands. It’s also crucial to periodically renew the car insurance policy to keep it valid and compliant.
