In the second half of 2022, India's car sales finally picked up steam after weathering the pandemic's slow phase and the ensuing supply chain issues. Buyers took advantage of this post-pandemic recovery, a fact backed by the national passenger vehicle sales in September 2022. In September, passenger vehicle sales touched a new monthly record of around 3.5 lakh units (Source: Autocar India). Understandably, many people await popular festivals and seasonal discounts to make the best of festive deals and discounts on vehicles and motor insurance sales. Today, we will look at important things you must consider when choosing and buying a car insurance policy online.

Understand the basics

Besides festive discounts and deals on car sales, the auto insurance premium is another area where you can save good money. In India, it is mandatory to have at least third party insurance to be able to drive your car on the road. As per the Motor Vehicles Act, a car insurance policy is a legal requirement. If you are caught driving your car without a valid car insurance policy, you will have to pay a fine of Rs 2,000 the first time, Rs 4,000 the second time, and/or face up to three months of imprisonment.

Third party insurance protects you against third-party liabilities in the event of an accident involving your insured car. In the instance of an accident, the insurance will offer a layer of defence against physical harm to your car due to fire, natural disasters, theft, and more.

Things to consider before you get a car insurance policy online

Transfer NCB: If you are selling your old car and purchasing a new one, do not forget to transfer the No Claim Bonus (NCB) to your new car insurance plan. You will come across several profitable offers throughout the year, encouraging you to buy new things. Your NCB discount, however, could go up to 50% within the next five years or less, if you manage to complete consecutive claim-free years. This discount will help you to make significant financial savings.

Compare policies: To meet everyone's needs and interests, various insurers offer a wide range of features. Therefore, do not just buy the first plan you come across. Simply studying different motor insurance companies and their policies will allow you to scan and shortlist plans that meet your needs. Online research is even more easy and simple as it allows you to compare several plans at the same time. After thorough research, select the offer that best fits your needs and budget.

Add-ons: If you are serious about safeguarding your car, get relevant add-ons along with a comprehensive car insurance policy for enhanced coverage. Popular add-ons include Zero Depreciation Cover, Accessories and Fitting Cover, Engine Protection Cover, and Invoice Cover.

Set correct IDV (Insured Declared Value): The amount insured by your insurance company is determined by the IDV of your car. The maximum amount of money you get as compensation in the event of total loss or theft is determined based on the IDV of your car. Therefore, make sure to set your IDV correctly, neither too high nor too low, when considering the depreciation value of your vehicle based on its selling price. A high IDV will increase your cost of the premium, and a low IDV will reduce the total compensation amount in case of total loss. So, it is always best to set IDV correctly.

Read the documents: Thoroughly study all the paperwork before signing on the dotted line. Review your policy's exclusions and inclusions to see if it provides sufficient coverage. There won't be any misunderstanding or dissatisfaction later on if you take adequate precautions before buying the policy.

Network garages: As they allow you to avail of the cashless facility, network garages are perhaps the best feature of a four-wheeler insurance package. Check the list of network garages and see if it includes popular garages in your vicinity.

Reputation check: Make sure to spend enough time learning about the market presence, services, and reputation of your insurer. Verify their Claim Settlement Ratio, and seek their customer feedback before making a decision.

Tips for choosing the right agent while getting car insurance online

Comparing quotes from different insurers is the best way to get a good deal on a car insurance policy. It pays to shop around and compare coverage, benefits, limits, and premiums offered by different insurance providers before selecting one. A good insurance agent gives personalized advice and helps you choose from a wide range of policy options. Therefore, it is important to keep a few things in mind before placing your trust in an insurance agent.

1. Check for experience and knowledge: Choose an experienced and knowledgeable agent who has a good understanding of local regulations as well as all types of car insurance policies. Ask about third party insurance and comprehensive policies.

2. Compare customer reviews: Read customer reviews to find out how satisfied previous customers are with the service they received from the agent.

3. Ask for referrals: Ask your family and friends to recommend an agent who has helped them with their insurance policy needs.

4. Request quote: Request quotes from different agents. Compare those to make sure you are getting the best deal.

5. Look for discounts: Ask your agent if they can get you discounts or special offers to help lower your premium costs.

6. Seek advice: Make sure to ask the agent questions about coverage, deductibles, and limits so that you understand what you are buying.

7. Check the company’s reputation: Do some research on the insurance company to make sure they have a good reputation for reliable customer service and claims processing.

8. Consider convenience: Look for an agent who can provide 24/7 services, including online access so that you are not dependent on office visits for everything.

Following these tips can help you choose the right insurance agent for your car insurance policy and get the best deal possible.

Conclusion

A car insurance policy is an investment you make to ensure adequate coverage during a tough time. Therefore, take time out to research and assess your needs before buying basic third party insurance, or a more exhaustive comprehensive insurance plan. Always look out for discounts and deals when buying a new car and policy as they give additional reasons to celebrate.


Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.