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Car Insurance Online

Best Car Insurance

Last Updated 01st Dec 2020

  • Car insurance policy shields the insured vehicle from the risks on the road.
  • You can opt for either a third party insurance plan or a comprehensive insurance plan.
  • A comprehensive insurance plan offers more coverage than third party insurance and hence, is comparatively more expensive.
  • Car insurance can be purchased and renewed seamlessly online.
  • With car insurance, you can cover damage caused to the car due to natural disasters, man-made disasters, an accident and theft.

Car Insurance

Car insurance works in the same manner as any other insurance does wherein you purchase a car insurance policy and pay premiums throughout the tenure. In the event of accidents or mishaps, the insurer takes care of the financial necessities incurred by your car. Investing in a car requires a lot of money, and like any other investment, it needs to be protected. However, you cannot predict the uncertainties on the roads. Hence, whenever any mishap or accident occurs, the card owner ends up paying a huge price. Thus, car insurance is important to save oneself in time of crisis. Many insurance companies across the country are now providing car insurance policies with affordable premiums. The growing number of cars in the country resulted in high demand for car insurance policies.

Why do you need Car Insurance?

The reasons why you should opt a car insurance policy soon after purchasing a car are listed as follows:

  • Mandatory requirement: According to the Motor Vehicle Act of 1988, all cars used in public space must hold a valid car insurance policy. Hence, driving a car without insurance is an offence and leads to a penalty. Third-party insurance cover is compulsory for all cars. However, you can opt for comprehensive car insurance if you want.
  • Financial assistance during an emergency: Car insurance policies provide coverage in case the insured car gets damaged in an accident. They bear the expenses for any damage caused to the car or the car owner.
  • Third-party liability: If any third party vehicle or property gets damaged in an accident involving your car, you have to pay for it. However, with a valid car insurance policy, all your third party liabilities will be covered by your insurer.

Car Insurance Policies Available in India

Based on the various requirements and budgets, car insurance companies provide the following car insurance policies.

  • Third-party car insurance: Third-party car insurance cover, as the name suggests, provides coverage for the third party liabilities. Hence, the expense for any damage caused to a third party vehicle or third party property by the insured car is covered by this policy. Needless to say, the insured car does not get any coverage under this policy. Those who have a low budget and want the minimum insurance coverage should opt for the third party car insurance policy. Note that the third party policy does not come with any add-on covers.
  • Comprehensive car insurance: Comprehensive car insurance policies offer the maximum coverage to the policyholders. With a comprehensive plan, you can avail financial assistance for third party liabilities and for damage sustained by the insured vehicle as well. The plan allows you to further extend the coverage with a wide range of additional covers. You can opt for any number of additional covers you require. The charges for the additional covers are added to your premium. This policy is best for those who want maximum coverage for their vehicles.
  • Usage-based car insurance: The usage-based policy or the pay as you drive policy is the newest addition to the car insurance policies of India. This is a cost-effective and convenient plan for vehicles that are not used on a regular basis. Instead of paying a particular amount as premium, you pay the premium as per the kilometres the vehicle has travelled. While purchasing the plan, you will have to declare the distance you are expecting to travel during the policy period. The insurer sets the premium based on that distance. It comes with a term of 1 year, and only a few insurance providers currently offer this plan.

Tips to choose the best Car Insurance policy

The market is packed with a huge number of car insurance policies. The insurance companies offer attractive coverages and benefits. Hence, finding the best insurance policy among so many options becomes a tough job. Here are a few tips to make the process easy for you.

  • Do your research: Before buying any insurance plan, find out all the terms, conditions and charges associated with the plan. The transparency will ensure that no confusion arises later.
  • Compare the policies: You must compare all available car insurance policies before making any decision. Study their features, their performance and their prices. You can compare car insurance policies based on factors such as premium quotes, claim settlement ratios, and coverage.
  • Take the necessary add-on covers: The car insurance plans come with many add-on covers. Customize your car insurance plan only with the add-ons cover you need. Remember, each add-on comes with added charges.
  • Go online: Most of the insurance providers offer both offline and online services. The method of buying car insurance online is more beneficial than the offline method. No agent or broker is involved in the online, and hence, no broking charge will be imposed on you. Moreover, many insurers offer special discounts on online purchases.

What gets covered in a Car Insurance Policy?

The following are covered under a standard car insurance policy.

  • Damage caused to the insured car because of natural disasters.
  • Damage incurred to the insured car due to man-made disasters.
  • Damage incurred to any third party vehicle or any third party property due to an accident involving the insured car.
  • Personal accident coverage to the driver or owner.
  • Total loss due to theft or burglary.

Add-ons available in a Car Insurance

Below goes the set of add-on covers available with a car insurance plan.

  • Zero depreciation cover: Things lose value over time, and cars are no exception. This loss in value is called depreciation. Insurers deduct the depreciation value from the sum assured during claim settlement. With the zero depreciation cover added to your insurance policy, you can avoid the deduction.
  • Passenger assistance cover: This cover provides financial assistance to the policyholders for hospital expenses and medical expenses.
  • Roadside assistance cover: In case of any roadside emergency, be it breakdown or a tyre puncture, this add-on will keep you covered. You can avail on-site repair and towing services to the nearest garage.
  • No claim bonus cover: This no claim bonus generates discounts during renewal, provided no claim has been made in a single year.
  • Daily allowance cover: By opting for this cover, you can avail daily allowance for the number of days your car stays at the network garage.
  • Engine protection cover: Any indirect damage caused to the engine by oil leakage or water ingression gets covered by the add-on. This cover includes engine parts and gear parts.
  • Consumables cover: This one is for covering all the consumable items of a car such as a grease, screws, nuts, bearings, engine oil, and others.
  • Key loss cover: This cover helps you in case you lose or misplace your keys. It will provide you with a key replacement.

Things that are not Covered in a Car Insurance

In general, car insurance policies do not provide coverage under the following circumstances.

  • Normal wear and tear.
  • Depreciation and consequential loss.
  • Mechanical or electrical breakdown.
  • Damage incurred while driving without a valid driving license.
  • Damage incurred while driving in an intoxicated state.
  • Damage incurred while the policy is not valid or has expired.
  • Damage incurred for abusing the guideline of the car manufacturer.

Benefits of Car Insurance

The benefits of a third party car insurance policy are limited to third party liabilities. However, with a comprehensive car insurance policy, you can enjoy a variety of benefits.

  • Coverage for the insured: If you opt for comprehensive car insurance coverage, you will be free from any expense accumulated due to loss or damage to your car. Be it a natural or a man-made disaster; your insurer will bear all expenses.
  • Coverage for third party liability: If your vehicle has caused any third party vehicle or property damage, both third party car insurance policy and comprehensive car insurance policy will provide financial aid.
  • Coverage for personal accidents: The comprehensive insurance plan offers a personal accident cover. In case of partial or complete disability and death, the policy will give the beneficiary a pre-decided amount. Along with the driver or owner, you can get a co-passenger cover as well.
  • Cashless service at network garages: In case of an accident or mishap, you can avail cashless services in any of the network garages of your insurer. This applies to the comprehensive plans only.

Factors Affecting Car Insurance Price

Following factors play a crucial role when car insurance companies compute the price or premiums of a car insurance policy.

  • Policy type: The comprehensive car insurance policy offers more coverage than a standard third party insurance policy. Hence, the comprehensive policy is more expensive than the third party policy. Furthermore, the purchase of car insurance online is cheaper than offline.
  • Make, model and age of the car: The make, i.e., the manufacturing company and the model of the vehicle are considered when setting the premiums. The age of the vehicle affects the price as well. The premium for an old car is lower than a new car.
  • Engine type: The cubic capacity of the car engine affects the premium to a great extent. A higher cubic capacity raises the premium.
  • Anti-theft device: If you have installed any anti-theft device that is approved by the Automotive Research Association of India, you can earn a discount of up to 2.5% on your insurance premiums.
  • Add-on covers: Each add-on cover comes with specific charges. When you opt for add-ons with your comprehensive plan, the charges are added to the premium amount.
  • Geographic location: Your geographic location can increase or decrease the premium amount. If you live in a high traffic location or in an accident-prone zone, you have more chances of getting involved in a road accident, and hence, the insurer will charge a higher premium. Also, if you live in an area with low traffic, the chance of accidents is less and hence, the premiums will be lower.
  • Profession of the policyholder: The IRDAI offers special discounts to the military personal, government employees and teachers.

Why Should You Renew Your Car Insurance Policy Online ?

Timely renewal is necessary to keep availing the benefits of car insurance policies. You can get your policy renewed offline by visiting the office of the insurer or online on the website of the insurer. The online process is getting more popular for the following reasons.

  • Easy and fast process: The online mode or renewal is far easier and faster than the offline mode. All you have to do to get your policy renewed is to land on the website of your insurer and follow a few steps. Provide your policy number, select the type of the renewed policy and make the payment online.
  • Paperless procedure: The online mode requires very less or in most cases, no paperwork. You can enter the details required on the website, and your job is done.
  • Easy customization: While renewing your policy online, you can personalize your plan based on your needs. You can switch plans, add more covers or remove the previous ones.
  • Easy switching of providers: If you are not satisfied with your current provider or want to switch your provider for some other reason, you can easily go for it during your policy renewal. Compare car insurance plans and select the one you find best.

Benefits of Buying Car Insurance Policy Online

By opting for the online buying process of car insurance policy, you can avail the following benefits.

  • Cost-effective: Most insurance companies offer special discounts for online purchase as no middleman is involved in the process.
  • No paperwork: Unlike the offline mode, the online mode does not require tedious paperwork. You can fill in the forms online and take help from a digital signature if required.
  • Easy comparison: Comparing car insurance quotes, premiums and other features become an easy job online. There are many websites that help you in comparing the plans within minutes.
  • Fast processing: There is no need to stand in lines and wait for your turn while buying an insurance plan online. The online purchase is very convenient and saves a lot of time.
  • Easy payment: While buying car insurance online, you can make the payment securely and easily via debit card, credit cards or internet banking.
  • Hassle-free documentation: There is no hassle of documentation for the online process. Whatever documents are required by your insurer, you can upload the soft copies.

Comparison between Third-Party Car Insurance and Comprehensive Car Insurance Cover

The table below compares the third party car insurance policy and comprehensive car insurance policy based on multiple key factors.

Parameters Third-party car insurance policy Comprehensive car insurance policy
Nature of requirementMandatory as per the court of law.Optional and depends on the policyholder.
CoverageOnly covers third-party liabilities of the policyholders. Covers own damage of the insured as well as third party liabilities.
AffordabilityThe limited coverage makes it cost-effective. The extensive coverage makes it relatively costlier.
Add-on coversNo add-on cover is offered.Offers multiple add-on covers to extend the coverage.

How To Make a Car Insurance Claim

You can either register a cashless claim or go for a reimbursement claim. Making a claim under any car insurance policy is a seamless process and can be done in the following steps.

Making cashless claim
  • Contact your insurer immediately after the accident takes place.
  • Collect the claim form. Submit it along with the set of required documents
  • The insurer arranges a survey of the damage.
  • After the survey, take the damaged vehicle to the nearest network garage.
  • After the surveyor submits the survey report, the insurer will pay the expenses directly to the network garage.
Making a reimbursement claim
  • Contact your insurer and register your claim.
  • Take the vehicle to your preferred garage.
  • Pay for all the expenses at the garage.
  • Collect all the bills and submit them to the insurer.
  • After verification, if the claim and the documents seem valid, the insurer will reimburse the expenses.

Documents Required to make a Car Insurance Claim

The following documents are required while registering a car insurance claim.

  • Duly filled and signed claim form.
  • Copy of police FIR.
  • Driving license
  • Copy of RC or Registration Certificate
  • Fitness certificate (for commercial vehicles)
  • Insurance documents

FAQs

Which is the best car insurance policy?

In terms of coverage, a comprehensive car insurance policy is the best as it provides coverage for the insured vehicle as well as for third parties.

How much does car insurance cost in India?

The cost of car insurance policies varies based on the type of policy, and the add-on covers the policyholder has opted for.

How is the new car insurance premium calculated?

Subtract the total sum of No Claim Bonus, discounts, liability premium and cost of add-ons from the own damage premium. You will get the insurance premium.

What is no claim bonus in car insurance?

No claim bonus is a discount that is given during the renewal. You can claim No Claim Bonus only if you have not made any claim in a single year.

Is it safe to renew the car insurance online?

Yes, it is safe to renew the car insurance online.

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