Digitisation is indeed transforming the way various industries function, including the motor insurance industry. Car insurance providers are utilising the manifold benefits of the online channel. Online portals provide all the necessary information about car insurance policies, including the numerous features and benefits offered. Potential customers can use such information to their advantage while making purchase decisions. Additionally, insurance providers allow customers to purchase policies through their website. So, you can buy a policy with just a few clicks from the comfort of your home or office. This provides you a great degree of convenience and flexibility. Besides, you do not have to wait for the policy document to arrive by post at your doorstep. You may simply download the document online, within minutes.
If you are considering purchasing a car insurance policy online, here are five tips that will help you through the process.
While purchasing a car insurance policy online, it is imperative to identify a motor insurance plan most suited to your needs. Most car insurance companies in India sell both comprehensive covers and standalone third-party covers through their online websites.
A third-party car insurance offers coverage for an accident that took place because of a fault of yours. It covers third-party property damage, bodily injuries, or death sustained by the third-party, and a personal accident cover for the owner. It is mandatory for car owners to have a minimum cover of third-party car insurance according to the Motor Vehicles Act, 1988. A comprehensive car insurance, on the other hand, offers enhanced coverage over third-party car insurance. It covers damages to the policyholder’s vehicle as well. Though the comprehensive car insurance policy is costlier than third-party car insurance, it provides numerous benefits, allowing you to enjoy adequate financial protection when you need it the most.
Before buying a car insurance policy, check whether the motor insurance company has tie-ups with a network of garages. This is one of the most important aspects to take into consideration while purchasing a car insurance policy online. If your car needs to be fixed, you may simply visit the garage in the car insurance company’s network. The motor insurance provider settles the repair expenses directly with the garage which is called cashless settlement. This facility saves you the trouble of numerous follow-ups, e-mails, and visits to your car insurance provider for a reimbursement.
Many car insurance policy buyers are unaware of the concept of no claim bonus (NCB). In simple terms, NCB refers to the discount or reward given to the motor insurance policyholder for not making a car insurance claim in the previous policy year. An NCB may be accrued over the years up to a period of five consecutive years. You may benefit from such a discount during car insurance renewal. In case you are making a switch from one car insurance provider to another, you may transfer your NCB and enjoy discounted premium rates.
NCB helps car insurance policyholders get discounts between 20 per cent and 50 per cent if no claims were made over a period of one or more years. This helps you make significant savings at the time of car insurance renewal.
It is wise to opt for enhanced coverage over your basic car insurance plan when you are selecting a motor insurance policy online. You may choose from various add-ons, also known as riders, to benefit from a higher coverage. Though riders come at an additional price, they provide numerous benefits.
Following are some of the most common rider options available in the market.
Under this coverage, reimbursement for four-wheeler parts is offered against the actual price and not the depreciated cost.
This rider allows you to enjoy the NCB benefit even if you have made a car insurance claim in the policy year.
There may be instances of vehicle breakdown due to mechanical failure or a flat tyre. In such a case, the car insurance provider offers necessary assistance such as arranging for a mechanic or fuel, replacing a flat tyre, arranging for alternate transport and sometimes even accommodation facilities.
This add-on provides additional coverage in the event of an accident of your two-wheeler leading to death or permanent disability of the owner.
It covers the cost of repairs or replacement of engine and the electronic circuit against damages due to leakage of lubricating oil, engine malfunction, and ingression of water.
The car insurance sector has some unique aspects that make effective customer service essential. You may, therefore, choose a car insurance provider that is known for providing good customer service and support. You may go through reviews of the motor insurance company on online websites and forums. You may also ask around your family and friends for suggestions. Getting first-hand information about the car insurance company’s levels of customer service helps you make a prudent decision. Also, read the customer service terms and conditions in detail and know the contact points required to seek reimbursements towards claims from the car insurance company.
These tips are likely to help you buy the most suited car insurance policy online. Some other aspects to take into consideration include the procedure for making a claim, voluntary deductibles, and affordability of the car insurance policy.
Your dream vehicle deserves the best car insurance with maximum coverage. So, understand terms and conditions of the various car insurance policies and select one that offers coverage according to your requirements.
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