MUMBAI: Life has turned simpler in many aspects with the introduction of technology, and car insurance is not an exception. Now, you can buy car insurance online from your home with just a few clicks. But the decision needs your cautious analysis. Paying attention to the small things will allow the policy to offer maximum value. This blog helps you with all the things you should know about online car insurance purchases.
1. Compare Before You Commit
The biggest advantage of buying car insurance online is the option to compare multiple insurers. Often, many buyers quickly buy the first affordable policy and then find out that it has no essential features. Before you pick any, compare not only the premiums but also the coverage, add-ons, or claim settlement ratio provided by each company.
There are many reputable insurance portals and aggregator websites that allow you to compare those side by side. User reviews and ratings can also be valuable tools in making your decision. If you do this groundwork, you will be able to choose the right policy that serves your needs.
2. Understand Policy Types and Coverage
You come across many choices when you decide to buy car insurance online. It can be difficult to find the best option, especially for first-time buyers. Generally, there are two types of policy: third-party and comprehensive. Under Indian law, drivers are required to have third party car insurance, which only covers the property of other people in case the damage is caused to it by your vehicle.
As for comprehensive insurance, it protects both you and the party that might be involved. This type of insurance also includes coverage for theft, natural disasters and accidents. While it may be a bit pricier, the calm and certainty given by the insurance is essential for safety.
3. Assess Add-On Covers Wisely
Many insurers offer optional add-ons that enhance the protection of your car. For example, zero depreciation cover protects you from wear and tear and ensures you claim the total amount owed to your policy. Roadside assistance, on the other hand, may prove a lifesaver during a breakdown.
However, while add-ons strengthen your policy, they hike up the premium. Before adding any, consider your driving habits, car age, and exact location. This will help you determine the extra benefits that will optimise your coverage without paying more for unnecessary items.
4. Review the Insured Declared Value (IDV)
The Insured Declared Value or IDV is the present market value of your car, which is used to calculate the sum assured or claim amounts. An increase in IDV will lead to a higher premium and more compensation during total loss or theft. Similarly, reducing the IDV to lower the cost will also decrease the claim amount later.
Choose an appropriate IDV, as most online portals help you adjust this while buying. Knowing how IDV influences both your premium and claim amount will save a lot of financial burden, so choose wisely.
5. Examine Claim Settlement Ratios
Most insurance companies showcase their reliability through their claim settlement ratio. This is a figure that expresses the proportion of the claims settled by an insurer relative to the number of claims received. Reputed insurance companies like HDFC ERGO settle most claims without delay or waiting.
While comparing insurance companies online, take a close look at the insurer’s claim settlement ratio over the preceding years. Search for customer feedback on how much time it takes to get claims settled and on the overall experience of settling the claims.
6. Be Aware of Policy Exclusions
Every policy has exclusions. Being unaware of them will result in unpleasant surprises during claims. People should not expect insurers to accept their claims in cases of damage caused while driving drunk. Wear and tear over the years is also not covered.
Another thing commonly excluded is damages incurred due to one's negligence. Regularly check the list of items for which one cannot file a claim before purchasing. This prevents issues down the line.
7. Don’t Skip the Fine Print
No one likes reading the terms and conditions. But this is the section that details your policy. While it is boring, the fine print describes how to handle your renewal, the conditions of cancellation, and the documentation you will need to make a claim.
Call the given support number to clarify if you don’t understand anything mentioned in the policy document. Spending some extra time reading the fine print can save you many headaches later.
To Conclude
Picking car insurance online is not only about getting a speedy bargain. It is about a choice to shield your vehicle and your finances. Investing a couple of added minutes to compare choices, comprehend coverage, and confirm vital aspects can make all the difference when you need to make a claim. Every trip becomes a little more confident and carefree with the proper policy in place.
