Car Insurance – Here’s all that you need to know about online insurance purchase

Posted on: October 3, 2018, by :

Tips for buying and renewing car insurance online

While we all know that buying a car insurance is mandatory as per the court of law, it would be worth mentioning that it covers you against any kind of physical damage to the car, personal injuries or death, and other third-party liabilities. Timely purchase and renewal of insurance policy sets your mind free of any financial worries in the event of a contingency.  These days, a lot of insurance companies are offering online purchase and renewal facility to its customers and this is turning out to be a big boon. Let’s see the types of car insurance plans currently available in India.

These are the key car insurance plans:

Third Party Car Insurance – It covers any kind of injury/ death of pedestrians and the car drivers involved in an accident.. It is important to note that it is mandatory by law to buy a third party insurance. In case of death or injury, it provides unlimited liability cover. This low premium insurance coverage provides coverage to the third party property in an event of damage by the insured’s car.

Comprehensive Car Insurance – This highly recommended plan is here for you; providing a more extensive coverage/  protection against financial losses to the vehicle and its accessories caused by natural calamities or man-made disasters. Natural calamities include explosion, fire, storm, flood, lightning, hurricane, earthquake, landslide, etc. while man-made calamities comprise theft, strike, riot, burglary, housebreaking, malicious act, and damage during travel by road, rail, water or air, and terrorist activity.

In today’s fast-paced world,  buying and renewing a policy online has not just become convenient but also a norm. At the click of a button, one can compare different policies, understand its features and make the final purchase without any hassles.  Thanks to the advent of smartphones and friendly apps, insurance companies can now reach out to a wider customer base.

Here are some of the key benefits of going the online way:

  1. Ease of Comparing Different Insurance Plans – Depending upon the requirement, a customer can choose from an array of insurance plans being offered by the different insurance companies. One can read all the features of the plan and compare the premiums before deciding upon the policy that best suits his/her purpose. You can also read the feedback of other customers to better understand how good a particular plan is.
  2. Secure and Convenient– Reputed and reliable insurance companies ensure that their online platform is safe and secure for protecting the customers’ important financial details. The customer can himself fill all the vital information to ensure accuracy so that there are no hurdles at the time of claim.
  3. Faster and Hassle-free – Repeatedly going to the insurance office or meeting multiple insurance agents can be a real pain. Online facilities save you from a lot of such troubles. It does away with the need to call and fix up appointments with different insurance agents which in turn, saves time and energy.
  4. Timely Renewal of Policy–When the renewal of an insurance policy is due, the company starts sending out reminders on the registered email id as well as on the phone number much in advance. It also shares the link through which one can pay the premium and get the policy renewed. Online policy renewal hardly takes any time and one can do it at his/her convenience while sitting in the office, home or even while travelling.

Although buying an online insurance plan can be a cakewalk for most of the people as there is a plethora of information available online; it can become confusing for some.  Since there is no human touch involved, prior knowledge of key factors for online policy purchase can be quite fruitful.

Things to consider before purchasing an insurance policy online

  1. Understanding the Quote – After going through the various car insurance plans and quotes proposed by different insurance companies, it is important to properly analyse the final quote that you have decided upon. It should provide all the features, the extent of coverage and the add-ons as per your requirement. The premium should be well in sync with the policy coverage.
  2. Check the Deductible– Deductible is the expense, which the insured has to bear before the insurance policy becomes active. It is to be noted that higher the deductible, lower will be the premium. Hence, only considering the premium for choosing the insurance plan is not a good idea. One needs to look at the deductible amount as well.
  3. Check for No Claim Bonus – A no claim bonus (NCB) is the benefit given to the insured if he has not made any claim during the policy period. Hence, at the time of renewal, he gets a discount in the premium known as the No Claim Bonus. This bonus gets accumulated for every claim-free year of your car insurance policy.
  4. Check the Add-Ons – Once the plan has been decided, the next step is to study the add-ons. In the case of car insurance, customers can purchase a basic policy and then customise it with various riders or add-ons to suit their requirements. One can read the feedback of other customers to better understand the policy.
  5. Provide all vital information – After finalising the policy and add-ons and before making an online payment, be sure of providing all the vital information, correctly. Any wrong information entered will dampen your chances of getting a claim in the event of an emergency. Cross-check all the details before submitting it on the company website. In case the information entered is wrong and policy has been issued; immediately get in touch with the customer service of the insurance company to get it rectified.

These days, insurance companies are offering a very user-friendly interface for giving all policy related details and the online payment procedure has also become very simple and secure. It saves paper and gets all your policy related documents stored on your email, which you can easily refer to anytime and from anywhere. The online platform has surely revolutionised the traditional insurance industry and is capturing a big share of the customer base that is young and tech-savvy.

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