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The A-Z of Buying Car Insurance Online for Your Next Vehicle

Buying Car Insurance Online So you're only a few steps away from purchasing your ideal vehicle. However, have you considered the insurance process? Before buying a car, whether new or used, one must conduct extensive research. This post will walk you through everything you should think about when purchasing a new automobile.

Types of Insurance

Be informed of all available policies and the coverage they provide before selecting car insurance. Insurance plans differ between private and commercial cars, and you must get appropriate coverage for your vehicle's use. Nowadays, you can buy car insurance online easily.

The available insurance plans are as follows:

1. Third-party insurance

All cars on the road are required to have third-party insurance. It covers damages to the vehicle collided with in the event of an accident. However, it does not cover damages to your vehicle. You will need comprehensive insurance to cover damage to your vehicle (explained below). A third-party policy is a less expensive type of insurance.

2. Comprehensive insurance

In the event of a collision, comprehensive insurance coverage covers damages to your automobile, including third-party vehicle damage. It can also cover any unintentional damage or theft of the vehicle. Under this coverage, damages due to natural catastrophes are also covered. It is the most expensive type of vehicle insurance coverage available.

3. Stand-alone own-damage insurance policy

The third type of policy is a stand-alone own-damage policy, which covers the insured's automobile for losses caused by the insured. There are no third-party liability provisions in this policy.

Buying Car Insurance Online Purchase add-ons based on your requirements

You may choose add-ons like roadside assistance, engine replacement, and so on based on your risk profile. For example, if you often drive during odd hours or long distances, adding roadside assistance as an add-on might be beneficial. Suppose your car breaks down, you can avail the add-on roadside assistance provided by your car insurance policy.

The following are some of the most popular insurance add-on advantages to consider:

  • Coverage for zero depreciation.
  • Engine Security.
  • Coverage for Roadside Assistance.
  • Coverage for Consumables.
  • Coverage in the event of a License Loss.
  • EMI Cover.
  • Coverage for Personal Belongings.
  • Cover for Tires.
  • Coverage for Lifetime Road Taxes.
  • Cover for the Lock and Key.
  • Cover for a Registration Certificate.
Examine the available insurers

Most automobile dealerships provide insurance coverage at the time of purchase. However, those policies may not satisfy your needs. Make careful to check policy costs from several dealers before making an educated decision. It may be tempting to get the lowest insurance available, but picking an appropriate policy after conducting extensive research on the dealers will benefit you in the long term.

Don't overlook the insurance terms

Most automobile owners only read the coverage provided in the insurance policy and disregard the section delineating what is not covered. That is a typical blunder made by most first-time customers. Before finishing your insurance, make sure you read it well and understand the coverage and exclusions.

Understand the claim procedure

Before obtaining car insurance coverage, inquire about the claims procedure. The procedure should be straightforward and dependable. Also, look at the insurer's claim settlement ratio. A corporation's claim payment ratio reflects how many policies are resolved each year by compensating claims. The claim payout ratio is helpful to assess the insurer's dependability.

Buying Car Insurance Online Know about the Insured Declared Value (IDV)

Vehicle insurance companies use the Insured Declared Value (IDV), vehicle size, and other factors to calculate automobile insurance premiums. As a result, understanding a vehicle's IDV is critical. In the event of total loss or burglary, the IDV is the maximum amount of insurance that you can collect. A vehicle's IDV falls as it ages since a new automobile has a greater IDV than a year older. In layman's terms, IDV is the current market worth of your vehicle.

Final stage, i.e., buying car insurance online.

The procedure for buying car insurance coverage online is straightforward. You will have to provide personal information such as your name, residence, age, occupation, and vehicle information such as make, model, engine number, chassis number, RTO, seating capacity, and more. You may make the payment and register a policy for your automobile after the vehicle has been appraised using the online method.

Purchasing a car insurance policy online is a simple process, and numerous vehicle insurance firms provide competitive premium rates while still providing comprehensive coverage.

What is the Need for Car Insurance?

1. Legally Required

The Government of India requires all vehicles used in public places to obtain automobile insurance. Third-party liability coverage is mandatory for all cars, but you may also choose a comprehensive auto insurance policy.

2. A Profitable Buy

A comprehensive auto insurance policy ensures that your vehicle repair expenses in the event of an accident are insured. It will also cover any bodily injuries sustained by the insured. In the event of an accident with another car, compensation may be in hundreds of rupees, if not lakhs.

3. Provides Peace of Mind

Having vehicle insurance coverage gives you peace of mind since you can drive down the highway or even crawl through rush hour traffic without worrying about the implications of possible accidents. 4. Increased Health-Care Coverage
Many vehicle insurance policies cover injuries you incur or those sustained by your fellow passengers in the event of an accident. Suppose the policy you pick does not include this coverage. In that case, you may always acquire personal injury protection as an add-on cover, which will supplement your health insurance by covering items that your health insurance plan may not cover.

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Any facts, figures or references stated here are made by the author & don't reflect the endorsement of iU at all times unless otherwise drafted by official staff at iU. This article was first published here on 16th October 2021.

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