Cars in India are more than just a means of transport. Economically they are considered a luxury product. This means that not everybody gets to buy a car in their lifetime. This makes the vehicle even more valuable for the ones that do own one. Hence, it is important to buy a car insurance policy that can protect your vehicle in the best way possible.
Traditionally, the process of buying a car insurance policy includes a lot of scheduling among other hassles. You would have to book an appointment with an insurance agent and maybe visit the branch of the insurance company. Moreover, there is a ton of paperwork that you need to deal with. Instead you can simply buy a policy online. However, it is easier said than done. While there a lot more hassles in the offline way of buying car insurance, buying online is easy yet complicated for someone who is buying insurance for the first time. Here are the steps you can take to buy car insurance online:
- Conduct through research
Knowing is half the battle won. This is especially true in the case of buying car insurance online. There is an overabundance of options when it comes to car insurance. Every insurance provider in the country offers a long list of car insurance options. The only thing you need to figure out is which insurer you will buy from and what kind of coverage you will buy. Once you know that, the rest of the process gets even more easier. Hence, remember to look at options, compare them according to you preferred coverage, and then go ahead with the purchase. Here are few parameters that you can judge a policy on:
- Customer service
With newer insurance providers and newer policy options, the insurance industry is set to be extremely competitive. Due to increasing competition, most companies take special measures to increase their customer service. It is always better to go for a company that offers the best customer service according to you. This includes per-sale and post-sale services.
- Price
Each policy will offer a different set of benefits for a different price. Hence, you should compare the price of the plans that you like. Then you can decide the right plan based on coverage preference and affordability.
- Coverage
Simply put, ensure that the policy you choose has enough coverage for your car. If your policy doesn’t have enough coverage for your car, you are simply throwing your money away by buying it.
- Select the type of insurance you want to buy
Once you are finished with your research, you have decide how much coverage you want and what kind. The type of policy you prefer decides what type of coverage you will get. Car insurance policies are categorized into two types. They are:
- Third-party insurance
This plan offers coverage from the liabilities that may arise after an accident. These liabilities can be due to the physical harm or property damage that happens to a third-party in an accident. It helps you cover all the financial and legal liabilities of the incident without spending any money. Due to the liability coverage, it is mandatory for drivers to have at least a third-party car insurance for their car.
- Comprehensive insurance
This type of insurance policy includes coverage for third-party liabilities along with damages to your own car as well. For this reason, this type of policy is more expensive. However, it offers 360-degree coverage in exchange for the higher premium. Moreover, you can also opt for add-on pieces of coverage in a comprehensive insurance policy.
- Set the IDV and make the payment
Once you have selected the plan you want to buy, you have to set the IDV of the policy. IDV is an abbreviation for Insured declared Value. It is the maximum amount of money that your insurance provider will pay for your vehicle. It is often the same as the market value of the car. The IDV is paid in the case of a total loss of a vehicle. It is when your car is damaged beyond repairing or stolen beyond recovery. Setting the right IDV is important because the higher you set your IDV, the higher your premium will be.
Once you have set your IDV, the last step of the process is to make the payment for the policy. It is the final step of the process. Traditionally, you would have to pay in cash to your insurance agent. However, due to the online process of buying policies, you can select digital payments directly to the insurance company itself. You can choose debit cards, credit cards, NEFT, netbanking, UPI, and any other option that your insurance provider accepts.