You will agree that the traditional way of buying car insurance was very tedious and involved extensive paperwork. But now, this process can be completed in a matter of minutes and hardly involves physical documentation. What changed? The answer is – Now we have advanced electronic devices and high-speed internet. With the help of just these two things, a lot has been achieved in terms of convenience and saving time.
Parts of your routine tasks like visiting a store and buying necessary items can be performed with the help of your phone. The only difference is, you don’t have to make a physical trip to a store. Simply visit their website and buy those items to expect a delivery at your doorstep. Similarly, major tasks like getting your car insured can also be done using your phone or laptop. As compared to the traditional way, buying car insurance online is quick, easy and secure.
10 Tips To Buy Car Insurance Online
1. Know Your Requirements
Car insurance policies are of two types – the one that offers coverage only against third-party liabilities and the one that covers you for both third-party liabilities as well as own damage.
It is ideal to buy a comprehensive coverage that offers both, third-party liabilities and own damage. Also, gauge your daily needs with respect to your car. How often do you drive? Where do you often park? And so on. Decide the coverage you wish to buy based on your requirements.
2. Compare Car Insurance
If you wanted to compare policies offline, you would have to request your insurance agent or a couple of insurance companies to send you the quotes and features of car insurance policies. You would then compare the policies manually and decide which one is the most suitable. You do not have to take the longer route while buying a car insurance policy online. Having car insurance allows you to compare policies and the coverage they offer in one go. You can visit the insurer’s websites, compare car insurance and select the best plan accordingly.
3. Use A Car Insurance Calculator
A car insurance calculator is an online tool that allows you to get a rough estimate of the cost of your car insurance policy. You can enter various details related to you and your car to know the approximate cost of your policy.
Familiarize yourself with certain terms related to insurance before using the calculator. This will help you tweak the values for better results. Here are some:
- Insured Declared Value (IDV): The approximate value of your car.
- No Claim Bonus (NCB): A discount for not raising a claim
- Deductible: Your share of the claim amount
- Add-on: Additional coverages
- Third party: A person other than the owner of a car, insurer, or passengers traveling in an insured car.
4. Don’t Make Price The Sole Priority
While making a comparison, people generally prefer low-priced products and services. Using the same ideology while buying car insurance can leave you underinsured. It will negate the purpose of you buying car insurance. A cheap policy may not offer complete coverage and you may have to pay more money from your pocket at the time of an unfortunate event.
5. Set The Right IDV
As mentioned earlier, Insured Declared Value (IDV) is the approximate market value of your car. IDV also forms the base for deciding the cost of a car insurance policy. As the owner, you need to decide how much IDV you wish to set. Note that, setting a higher value will increase the cost of your car insurance policy. On the other hand, setting a lower value might leave you underinsured.
6. Select Only Relevant Add-ons
Add-ons will increase the scope of your car insurance policy, i.e. you will get an extended coverage. However, buying irrelevant Add-ons will add to the cost of your policy. Not to mention you will have coverage for situations that have a negligible chance of occurring. For example, if you often drive alone you may not require a passenger cover. If your car has all company-fitted accessories, you may not need an Accessory cover.
7. Keep Your Details Handy
Keeping your details handy will result in a speedy process. You can get your car insured within minutes. A simple idea is to keep a copy of the previous policy with you at the time of car insurance renewal.
8. Understand No Claim Bonus
A No Claim Bonus will be awarded at the time of renewals provided you did not raise a claim during the policy period. In simple terms, it is a discount awarded by your insurer for your safe driving when the car insurance policy was active. NCB can be as high as 50% discount on the cost of your car insurance policy. You can lock this discount with the help of NCB Protector Add-on which allows you to keep the NCB active even after raising a maximum of two claims.
9. Set The Correct Amount Of Deductibles
Deductibles are of two types – Compulsory and Voluntary. The amount of compulsory deductible depends upon the cubic capacity of your car’s engine. Whereas, you can decide the amount of voluntary deductible you wish to pay at the time of claim settlement. Note that, setting a higher value will decrease the cost of your car insurance policy. However, you might receive a lower claim amount.
10. Don’t Rush
Don’t rush while buying a car insurance policy. Read the inclusions – situations under which you can raise a claim, and exclusions – situations under which you cannot raise a claim. Make a point to go through the terms & conditions and ‘fine print’ once you receive your car insurance policy. This will be helpful at the time of filing a claim.
Always keep your car insurance policy active with the help of timely renewals. This will ensure a layer of financial protection in case your car meets with an accident. Also, it is mandatory to buy car insurance under The Motor Vehicles Act, 1988. Always Drive Safely.
Acko General Insurance company is a digital insurer that deals with insuring private car and bikes via an online website. www.acko.com offers insurance policies at a lower market price due to not having to run physical retail stores in the country. This general insurance company has received a positive feedback from the customers and has been praised for an active after-sales service.
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