You’ll agree that the traditional method of purchasing insurance for car was time-consuming and involved a lot of paperwork. However, this process can now be completed in minutes and requires little physical documentation.
What has changed? The answer is that we now have fast-functioning electronic devices and high-speed internet. With these two things, a lot has been accomplished that is both convenient and time saving.
- Understand your needs –
Car insurance policies are classified into two types: those that only cover third-party liabilities and those that cover third-party liabilities and own damage. It is ideal to purchase comprehensive coverage that includes third-party liabilities and personal damage. Also, consider your daily needs for your vehicle. Determine the type of coverage you want to buy based on your needs.
- Car insurance comparison –
You do not have to go the extra mile when purchasing a car insurance policy online. Car insurance allows you to compare policies and the coverage they provide all at once. You can go to the insurers’ website and compare car insurance options.
- Make use of a car insurance calculator –
A car insurance calculator is a web-based tool that estimates the cost of your car insurance policy. You can enter various details about yourself and your vehicle to get an estimate of the cost of your policy. Before using the car insurance calculator, become acquainted with some insurance-related terms. This shall allow you to fine-tune the values for better results.
- Don’t make price your only concern –
When comparing products and services, people generally prefer low-cost options. Using the same logic when purchasing car insurance can result in underinsurance. It defeats the purpose of buying car insurance.
- Determine the appropriate IDV –
As previously stated, the Insured Declared Value (IDV) is the approximate market value of your vehicle. IDV is also used to calculate the cost of a car insurance policy. As the owner, you must decide how much IDV to set. Setting a higher value can raise the cost of your car insurance policy. On the other hand, setting a lower value may leave you underinsured.
- Only include relevant add-ons –
Add-ons may broaden the scope of your vehicle insurance online policy, providing you with more coverage. Purchasing unnecessary Add-ons, on the other hand, may increase the cost of your policy. Not to mention that you can be covered for events that are extremely unlikely to occur.
- Keep your contact information on hand –
Keeping your information on hand shall expedite the process. You can get your car insured in a matter of minutes. The simple idea is to keep a copy of the previous policy when renewing your car insurance.
- Recognize the no claim bonus –
If you did not file a claim during the policy period, you would be eligible for a No Claim Bonus at the time of renewal. Simply put, it is a reward given by your insurer for safe driving while the insurance for car policy is active. NCB can provide a 50% deduction on your car insurance policy. *
- Determine the correct deductible amount –
Deductibles are classified into two types: mandatory and voluntary. The compulsory deductible amount is determined by the cubic capacity of your car’s engine. In contrast, you can choose the amount of voluntary deductible to pay at the time of claim settlement.
* Standard T&C Apply
** Currently, there are 2 tax regimes in India – new and old. To get the tax benefit you desire, choose the correct one after consulting an expert. You can opt for a regime change during the next financial year.
# Visit the official website of IRDAI for further details.
## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.