Digitisation of insurance has simplified the purchase process immensely. Browse through various products, compare prices and buy the best-suited product – that’s how simple it has all become. For example, car insurance is mandatory to purchase and renew on time. When time is so crucial, making an online purchase with no tedious paperwork makes a lot of sense, and the purchase can happen quickly. Take a look at the below points to ensure you choose your car insurance plan smartly.
Which type of Car Insurance to select?
Assessing your insurance coverage requirements is essential before you start shortlisting plans. Most policy providers offer two types of car insurance policies – third party and comprehensive car insurance. However, selecting one over the other is a decision that needs considerable thought. A third-party insurance policy covers the losses and damages caused by the insured vehicle to a third party’s property or life and is mandatory in India. The protection blanket of a third-party car insurance policy is quite limited, as it does not cover the insured vehicle. Alternatively, a comprehensive car insurance policy comes with extensive coverage, insuring the policyholder against third party liabilities as well as damages incurred to the insured vehicle due to an accident, theft or natural calamity.
As per the Motor Insurance of India Act, 1988, a third-party car insurance policy is mandatory for all vehicles operating on Indian roads. This implies that you need to opt for a third-party car insurance policy as the baseline protection cover when purchasing a car. You can pair a third-party car insurance policy with a standalone Own Damage cover to expand its liability coverage.
Comparison is key
When buying car insurance policies online, it is important to compare the benefits thoroughly. Premium amounts, IDV, claim processing procedures and claim settlement ratios of the listed car insurance plans. Most insurance providers like Bajaj Finance Limited allow customers to compare plans on their online portal to help them make a sound choice. The comparison provided by these portals makes selecting the right car insurance plan seamless.
The right IDV guarantees the right coverage
Valid for only comprehensive car insurance plans, an Insured Declared Value (IDV) refers to the maximum sum that you can claim from your insurance provider in the event of an accident or theft. This sum assured is determined by the listed market price of your car and changes annually after the estimated depreciation costs are factored into the calculation by the insurance provider. In other words, the coverage value of your policy will depend on your IDV. While a higher IDV elevates premiums, a lower IDV can leave you with insufficient coverage if your car is damaged or stolen. With Bajaj Finance Limited you can calculate your IDV by just filling in the details of your car. Once the IDV is set, you can get the best-suited plans, compare premiums and choose the plan that’s just right for you.
Choosing the correct add-on cover
You can extend the coverage of your car insurance policy by opting for add-on covers. Every such add-on can be purchased separately and will be added to the base premium amount. The zero-depreciation cover is the most prudent and recommended add-on, as it provides the policyholder protection against depreciation cost evaluations in case of a claim. Bajaj Allianz Car Insurance gives you numerous options to choose the correct add-on cover best suited to your car and its requirements.
Given our road conditions, traffic and the resulting unpredictability, a 24x7 roadside assistance cover may prove to be quite useful. This add-on cover ensures that assistance is just a call away in times of emergency. Other than these two primary riders, opting for an engine protection add-on that covers the costs of engine damage and repairs would be a smart pick. The car insurance plans listed on the Bajaj Finance Limited portal offer several other add on covers like key replacement, consumable covers, conveyance benefits, and more.
Look for No Claim Bonus plans
When picking a car insurance policy online, opt for one that comes with No Claim Bonus (NCB) benefits. Plans that extend this benefit give the policyholder a discount on the renewal premium for each claim-free year. Thus, NCB helps lower your insurance renewal premium by almost 20% to 50% in the long run. Additionally, since NCB is transferable to new car insurance plans in the future, policyholders reap the benefits of this feature for a long period. It must, however, be noted that the NCB cannot be transferred when you purchase/sell a pre-owned vehicle and transfer the insurance.
Thoroughly review the terms and conditions
Evaluating and assessing the terms and conditions of a car insurance policy is essential before you proceed to purchase it. Reviewing the inclusions and exclusions of a car insurance plan will allow you to know more about its coverage and help at the time of a claim. The value of an insurance plan can be evaluated by carefully reading the fine print on the document. When purchasing a car insurance policy online, this is one of the most crucial things to remember.
Buying a car insurance policy online can be a hassle-free process if you opt for those listed on the Bajaj Finance Limited portal. Since these plans come with an easy online application process requiring minimal documentation, good coverage, attractive add-on covers and a simplified claim settlement method, opting for them would be an excellent choice.
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