Technology has brought a paradigm shift in the way we shop these days. Thanks to digital advancement, everything is available at our fingertips, including the power to purchase a car insurance policy. Gone are the days when people didn’t have many choices and had to rely only on a few renowned insurance companies.
Most insurance companies are now online, ready to help customers to purchase car insurance online with minimal paperwork, and better benefits. If this is your first time around trying to explore a car insurance policy online, then here are some pro-tips to make this process easier.
Tip #1 – Understand the Insurance Terminologies
First and foremost thing before you begin your online search, understand the auto industry jargon so that you know exactly how the coverage works. We have put together this for you below:
- First-party: Theperson who owns the car and is purchasing car insurance is referred to as a first-party.
- Second-party: The insurance company that’s providing insurance for your car is known as a second-party.
- Third-party: In case of an accident, the person who has been impacted due to your insured car is called a third party.
- Own Damage: Any kind of damage that happens to the insured vehicle or the owner of the insured vehicle is called own damage.
- Insured Declared Value (IDV): It is nothing but the current market value of the car, and it is the maximum amount the insurance company will pay you in case the car is damaged beyond repair or has been stolen.
- No Claim Bonus (NCB): NCB in insurance is nothing but a discount in the premium provided by the insurance company during the renewal to the policyholder who hasn’t placed a claim during the active policy year. It’s like rewarding the policyholder for being a responsible driver.
- Add-ons: Comprehensive car insurance policy provides additional coverage features that you can add to your standard policy to boost the financial coverage.
- Claim: It’s the process in which the insured vehicle owner requests the insurance company to pay for the damages caused due to an accident.
- Depreciation: With every passing year the market value of the car reduces, this is nothing but depreciation.
Tip #2 – Analyse Your Needs
Now that you have understood the common terminologies, it’s time that you retrospect what kind of coverage you are looking for. Do you seek protection against the damages caused to your car? Or do you just want to abide by the Indian law and go with the basic mandatory third-party liability insurance?
For the ones who don’t know, there are two types of car insurance policies:
- Third-party liability insurance: This policy protects you against only third-party damages and it is a legal requirement to have this policy in place before you drive the car on the road.
- Comprehensive car insurance: As the name indicates, this policy covers both third-party damage and own car damage. Providing additional benefits with extra charges on add-on covers.
You can choose according to your needs and budget. It’s always recommended to purchase a comprehensive car insurance plan for improved protection.
Tip #3 – Compare Different Insurance Plans
Use the technology to your advantage and compare insurance plans offered by different insurance companies. Understand the nitty-gritty of inclusions, exclusions, premium rates, offers, etc… Comparison will help you with better decision-making.
Tips #4 – Use Insurance Cost Calculator
This is a very effective tool that auto-calculates your insurance policy premium amount when you enter certain basic details of your car. You can also compare the difference in the premium amounts offered by different insurance companies. This tool is important & crucial for your financial planning.
Tip #5 – Choose a Trusted Insurer
Purchasing car insurance online demands that you perform thorough research about the insurance company you want to go with. Check their official website, ratings, customer reviews, claim settlement ratio to name a few to analyze the overall reputation of the company in the insurance market.
Tip #6 – Keep a Track of Your Renewals
It’s extremely vital to keep a track of your car insurance policy renewal. If you miss renewing the insurance in time, your policy will lapse, resulting in the loss of opportunity to utilize the NCB offered by your insurance company. One big advantage of purchasing the policy online is that you can set it up for auto-renewal and also receive reminder alerts on your email when the renewal date is approaching.
We hope the above tips will help you pick the right car insurance policy online with ease.
Also read: How to improve Your Car Battery Life