A complete guide on car insurance policy online

While buying a car you may spend a good amount of time researching on which brand or model to buy. Little efforts are made to find the right insurance, unfortunately.

It is, therefore, equally important that you research all your options for a car insurance policy before deciding on the right one. The value of your insurance is dependent on the insured declared value of the car in question.

You need to keep several factors in mind while purchasing a car insurance, especially since you stand to lose your premium if not utilised in time. As part of a car insurance, you have to shell out an annual premium in return for a protection against serious accidents. However, if there are no serious accidents in the said year, you lose the premium.

Claims for minor damages notwithstanding, you get a bonus for not making a claim in that year. The no claim bonus can start from 20 per cent of your insurance amount to almost 50 per cent.

 

Importance of Car Insurance

Car insurance is a necessity in this day and age, especially since the infrastructure in most cities are poor and unkempt. It is a good idea to invest in a good car insurance even if you need not make claims every year and even if you stand to lose your annual premium. In case of an accident, you can be protected against damages, repair costs or even replacement costs.

Not only are you protected against damages, you are also protected against third-party damages. Many insurance agencies offer zero depreciation cover which means the depreciation on replaced parts is waived off. Having a car insurance takes the financial burden off you in case of an accident. You are also saved from the mental stress that an accident and subsequent financial burden can cause.

If this was not enough to convince you to purchase an insurance policy for your car, it is mandatory for vehicle owners to have an insurance for the vehicle under the Motor Vehicles Act, 1988. So if you do not have a car insurance and are caught by the traffic police, a challan may be issued against you for not adhering to the law. The law is for a third-party motor insurance and does not include a comprehensive insurance policy wherein the persons in the vehicle are also insured in case of accident.

 

Advantages/Benefits of Car Insurance

Many car owners are wary of investing in a comprehensive car policy because the annual premium paid by the car owner against protection is most likely to be lost. It is not ever year that you will have a serious accident and make a claim. Hence, investment into a car policy is serious business.

Here are some reasons why you should invest in a comprehensive car policy.

1. It covers your liability for third-party damages. This is a mandatory rule under the Motor Vehicles Act, 1988. It means that the policy protects you against any legal liability of accidental damages that has led to permanent damage of a third party.
2. Any damages to the car at the time of the accident are covered under the insurance policy. So you need not worry too much about paying for the repairs.
3. If there is repair or replacement required for any part of the car, the insurance agency will pay for the costs.
4. Driver of the car and occupants in the car at the time of accident are also insured against any injury sustained during the accident. The insurance agency pays for the treatment of these injuries.
5. In case of an accident or collision, legal recourse may be taken against you by any person affected by the accident. An insurance policy protects you from such legal actions.
6. If you have a comprehensive car insurance, you may be covered against other related costs of the accident such as towing of the vehicle, cost of an overnight stay in a hotel and other transportation costs.

How to buy car insurance policy online

You can now buy car insurance online directly from the website of the insurance agency. You can also visit a third party website to compare the best policies available online and applying through the third party website. In both cases it takes only a few minutes to apply for a car insurance.

The online mode of purchasing car insurance is not only fast but also hassle-free. There is minimal paperwork required. To get a bird’s eye view of all the insurance policies available in the market, it is advisable to apply through a third party insurance provider. The process is the same as that for purchasing insurance from the website of the insurance provider.

Start by going to the website of the insurance provider to purchase the insurance policy. Click on the motor insurance option. Now there are two kinds of motor insurances—two-wheeler and four-wheeler. Choose the four-wheeler option.

Insurance agencies may have different plans for private and commercial vehicles. Choose the plan you want to invest in. Once you have done that, click on the buy now or apply button. Click on the insurance for new vehicle option. You will be asked to key in your details such as name, email ID and phone number.

The next step is to key in the registration number of your car and click on the buy option. You will be directed to the payments page. You can pay using debit card, credit card or netbanking. Once the payment is successful, a receipt is sent to your registered email ID.

You can continue to pay your monthly premiums online in similar fashion.

FAQs

What are the documents required to settle a claim?

While raising a claim, you must provide the insurer with your insurance policy number, contact number, time and date of the accident. You will also need to provide the insurer with your vehicle number and the location of the accident. Other information required are name of the policyholder, model and make of the car, a short description of how the accident occurred and the extent of the loss. While raising a claim you need to provide details of the garage where your car is lodged. If there are any third-party injury, the details of the name and contact for the third party are important.

While claiming accident damages, you need to submit a copy of proof of insurance, tax receipt and the registration book (The originals may be needed for verification later), driving license of the insured driver, FIR (For third-party liability claims), estimated cost of repair at the garage, repair bills and receipts after payment is made at the garage and claims discharge-cum-satisfaction voucher, signed across a revenue stamp (Only for a cashless claim).

If you are claiming for a theft, you need to submit the original policy document or certificate, original registration book with endorsement of theft from the RTO, original tax payment receipt, details of the previous insurance and copy of the FIR.

How do I claim my car insurance?

There are two types of claims that can be made for car insurance—cashless and reimbursement. While in case of cashless claims all payments are made by the insurance agency, in case of reimbursement claims the car owner makes the payments and later claims the same from the insurer.

If you have been in an accident, get in touch with your insurance agency at the earliest. The next step is to file an FIR. The insurance company will schedule an appointment with you for an agent to come and inspect your car. The agent will take the car to the nearest garage. Based on the agent’s analysis, your claim request is approved and sent to the garage.

Hereafter, the garage and the insurance agency will coordinate and get the repair work completed within a timeframe.

If there has been a third-party injury during the accident, you need to inform your insurance provider at the earliest. You have to share your policy document with the injured party so that they can claim for the injury or losses.