Car insurance is a financial agreement between policy holder and insurer where the insurer provides protection to car owner against damages, theft, accidents or total loss to the car. Buying a car seems easy but providing proper maintenance and in proper shape is a different ball game.
As an owner, a small dent to the worst possible scenario of accident or theft can have lot of consequences to your financial protection. Car Insurance policy becomes necessary and a must for all vehicle owners whether commercial or personal.
Why do you need Car Insurance Policy?
Car insurance is a protection cover which safeguards your dream car against any damages or accident and mitigate your costs as well.
- Follow Law: As per Motors vehicles Act 1984, It is mandatory for all vehicles to opt for insurance to legally drive on roads and avoid huge fine.
- Safeguard against Damages: It provides protection against any damages incurred to the car due to an accident, fire, natural or any other disaster.
- Protection against Third Party liability: Insurance protect against any financial damages that occur due to losses to third party property and offer coverage.
Key features of Car Insurance policy?
It is mandatory to abide by the motors act to opt for car insurance for your dream car. However, other than law, there are various other features of insurance policy which protects owner from various financial liabilities.
- Cashless Garage networks: Car owner can get their car serviced at insurer’s wide network of cashless garages pan India.
- Overnight Vehicle Repair Use: No matter when your car breaks down, whether dusk or dawn and your car will be provided the required service in no time and back in shape for use.
- Personal Accident cover and safeguarding again personal or third-party damages.
- Claim Settlement: If car owner suffers damages due to accident or any unforeseen incident on the road, car insurance policy can mitigate your cost and protects you from financial losses. Owners should always go for insurer’s which have High claim settlement ratio.
Types of Car Insurance
- Third-party Insurance: Third party policy offers limited protection. This type of insurance only provides compensation to the damages or injuries done to the third party and does not cover insured car. Therefore, one must always opt for Comprehensive car insurance.
- Comprehensive Car Insurance: Comprehensive car insurance covers both third-party liability and own damages. Policyholder can improve their policy coverage with add-on features and benefits.
- Standalone Own Damage: In this policy, policyholder takes responsibility for own damage to their car. It doesn’t offer coverage for third-party car insurance.
How to Buy Car Insurance online?
The process of buying insurance online is quite simple and easy. Follow the simple steps to purchase insurance online:
Enter your Car Details: Provide details such as its make, model etc. to get premium plans.
Compare Car Insurance Quotes: Select the best available insurance plan which has lower premium and best requirements.
Pay Online: Pay the insurance online and get the policy documents within minutes in your inbox.
Benefits of buying Car insurance online
- Instant Quotes: Car owners can get the quotes instantly by entering basic details about their car and compare them with other insurers in the market.
- Easy to Compare: There are many insurance providers in India and owner can get confused seeing so many options. They can easily compare and select best possible insurance policy with less premium amount and high claim settlement ratio in the market.
- Low Insurance premium: In the Digital era can provide you added advantage of getting insurance at a single click along with lower premiums and extra discounts on making payments online.
Read Also: Benefits of Health Insurance Plans
Factors that impact your Car Insurance Premium?
- Engine Capacity: Vehicles with higher engine cubic capacity will have higher insurance premiums. It is a big factor in valuing your premium.
- Age of Car: Vehicle’s age is proportional to insurance premium. Generally, old vehicle has lower premiums as their IDV or Insured Declared value decreases as the age of the car increases.
- Insured Declared Vehicle: IDV of the new car is high so is the premium. As the age of the car increases, IDV decreases and insurance premium amount also goes down.
- Claim History: If Vehicle owner has bad history of multiple claims within a year then car insurance premium will be higher. If you have raised no claim in a given year, then NCB can be taken as a reward and lets policyholder pay lower premium.
- Installation of Anti-Theft Devices: If vehicle owners installs Anti-Theft devices authorized by ARAI then their policy premium can be lower. It helps insurance company to lower their risk for the compensation as there will be lesser risk of car theft.
Tips to reduce Car Insurance premium?
- Compare Insurance plans: Choosing right car insurance policy is of great importance. Policyholders must compare car insurance policies online and opt for plans with maximum features and lower premiums.
- Avoid Irrelevant modifications: Car owner should not go for irrelevant and unnecessary modifications to their cars. A higher car value increases the insurer’s liability which in turn increases the premium amount.
- Pay As you Drive: Car owners who drive occasionally or drive a certain distance, they can opt for Pay as you drive kilometers benefit and pay lower premiums. The less you drive, more you’ll save on your car insurance premium.
- Selecting Add-ons carefully: Policy insurers provide various add-ons features to boost the premium value. Many car owners select add-ons which are not useful for them and end up paying higher insurance premiums.
- Renew Policy timely: Car owners should not let their policy expire and renew it later-on. It increases your renewal premium and nullify your NCB. Owner should make sure to renew their car policy on time and should not let it lapse.
Why Is it essential to renew Lapsed Car Insurance policy?
- It is need of the hour to renew your car insurance if you haven’t timely paid the annual premium and let the policy lapsed.
- Legal Consequences: Driving an insured car is a punishable offense as per Motor Vehicles act and police can issue a challan for the same.
- No Coverage Allowed: Once car insurance policy has lapsed, car owner can’t raise a claim during that period if your car incurs a damage and you’ll not be able to mitigate the cost and will be liable to incur all expenses.
- Loss of No Claim Bonus: If you do not renew your car policy , you can loose your NCB benefit.
Document required for Car insurance claim.
Car owner should provide policy insurer with following documents in case of any theft, damage or accident to avail the insurance claim and safeguard against any financial liability.
- Duly filled and signed claim form
- KYC
- Copy of car insurance policy
- Copy of vehicle RC
- License
- Original bill repairs and payment receipts
Conclusion:
One should always go for Car insurance whether you have just bought your dream car or car has aged. It helps you to mitigate the financial liability along with abiding by the law. You can always opt for lesser premium and higher claim settlement insurance providers along with evaluating other factors, but Car insurance is a MUST.
Pingback: Getting insurance same day as accident