A car is not simply a means of transport, but it is a prized possession for most owners and their families. You might be able to afford the car, but its maintenance might take a toll on your finances. And if your car meets any unfortunate incident, you can kiss your savings goodbye. But all these factors should not stop you from buying a car and making your life simpler. For such situations, there is insurance.
With the advent of technology, buying car insurance has become much easier. You can purchase one on the internet. If you’re a first-time buyer of car insurance, here are some tips to help you:
- Understand Car Insurance Policies: The government of India mandates every car owner to buy third-party insurance. This insurance saves you from any liability occurring if your car meets an accident and damages someone else’s property. If you can pay for the expenses of your car, you can simply choose third-party insurance and move on. But most people protect themselves and their car through a comprehensive car insurance policy. A car insurance policy entails the below features:
- Own Damage Cover: The policy will protect your vehicle against natural calamities, man-made disasters and accidents. Any expenses that may occur in such cases will be covered by the policy.
- Third-Party Insurance – As mentioned above, any damage to a third-party’s property done by your vehicle, will be covered by the insurance policy.
- Personal Accident Cover – Insurance policies not only cover the vehicle but also the owner. In case of any injury or death, while driving the car, the policy will cover the expenses.
- Choose a trustworthy Source – When buying car insurance online, the internet becomes your source. There is no agent or middle-man involved who will keep you abreast about the insurance policies, their requirement and their offers. So, you need to do your research. Visit various aggregator websites offering car insurance online. You can even check out the well-known insurance companies’ websites to know more about them and the policies they are offering.
- Compare the policies: The best way to choose a policy is to shortlist 3-4 policies which suit your requirements and compare them. Various aggregator websites offer the feature of comparing policies. You can narrow down the policies of your choice, select them and hit ‘compare’. This button will lead you to a comprehensive table with all the benefits and drawbacks listed alongside each other. You can take your time, study it thoroughly, and select the one which suits your needs perfectly.
- Do a background check: Buying a car insurance policy from a company means that you will be in association with them for at least 15-20 years. You will be paying a premium for these many years too. But this doesn’t guarantee that all your claims will be approved. Many insurance companies wrongfully reject claims by the policy owners. To save yourself from such a situation, do a deep background check on the company. Ensure that their claim-settlement ratio is high and their solvency ratio is greater than 150%. A higher solvency ratio means that the company will not go bankrupt and will be able to pay for your claims. Read their reviews and pick the company which has a good grievance redressal rate.
- Ask for Add-ons: A car insurance policy does not cover features like accessories, depreciation, etc. For your insurance policy to cover these features, you will have to include add-ons for an extra premium. Choose the add-ons which you want your insurance policy to cover.
- Learn about Deductibles: A deductible is the part of the expenses which you as a policyholder will have to pay at the time of making a claim. The deductibles begin at Rs 500 for a car and rise for an older car with a higher risk. Learn about the deductibles required by your insurance provider.
Choosing the right platform to buy your car insurance policy will make all these factors much easier to take care of. There are certain websites which even send you constant updates about your policy and reminders for your payments. All of these features make buying a car insurance policy online much easy.