Car Insurance is a legal agreement between a car Insurance company and the policyholder where the insurance company assures payment of any financial loss that the policyholder may incur to own a car or to the third party due to an accident, theft, fire, natural calamities or other unfortunate events. Also, The policyholder pays a premium to the car insurance company for this financial security.
It’s a mandatory requirement to have at least a third-party car insurance in India under The Motor Vehicle Act for the car owners.
People usually buy car insurance in India from the dealer who sold them the car without doing much research. However, there are several drawbacks to it.
Some of which are listed below –
- You might be paying a higher premium on the car insurance.
- You may have a lower Insured Declared Value (IDV) on the car insurance.
- The car insurance company may not have many cashless garage networks.
- The dealer might not provide information regarding add-on covers.
- The claim process is also not explained while purchasing a policy from the dealer.
- The dealer might sell only third-party car insurance to all, while comprehensive car insurance might be a better option for few.
Hence, it is recommended to compare and buy a car insurance policy online.
You can follow the checklist below to compare car insurance online:
|Sr. No||Parameter for Comparing||Explanation||Decision making|
|1||Insured Declared value (IDV) , and premiums online||IDV is the maximum sum assured that the insurance provider shall pay on the car insurance policy. So, Premiums are paid by the policyholder to the insurance provider for getting their car insured.||Select the insurance companies which offer a certain sum assured at lowest premium to buy a car insurance policy online.|
|2||Claim Settlement ratio (CSR)||CSR is one of the most important points of comparison. It denotes the percentage of claims settled by an insurance company against all claims received in a year.||Select insurance companies having higher CSR to buy a car insurance policy online.|
|3||Incurred Claim ratio (ICR)||ICR indicates the financial ability of the car insurance companies to pay claims. So,ICR value is calculated using the value of claims paid against the total premiums received in a year.||Also, Select insurance companies having higher ICR to buy a car insurance policy online.|
|4||Solvency ratio||So, Solvency ratio indicates the financial stability of an insurance company as it compares all assets. And also inflows against the liabilities and outflows.||Select insurance companies having higher Solvency ratio to buy a car insurance policy online.|
|5||Claim settlement speed||Claim settlement speed shows how quickly the insurance provider approves and also, disburses the claim amount.||Select insurance companies having quick claim settlement speed to buy a car insurance policy online.|
|6||Cashless Garage Networks||Cashless garage networks are garages approved by the insurance provider for cashless car repair.||Select insurance companies having a long list of cashless network garages. So, to buy a car insurance policy online.|
|7||Online customer reviews||You may view the ratings and also, read reviews of the customer service experience on internet for any Insurance company||Select insurance companies having the highest online ratings to buy a car insurance policy online.|
|8||Additional benefits or riders||Additional riders help in enhancing the scope of coverage of a two-wheeler insurance policy. Such as pillion rider, zero depreciation, invoice protection, personal accident cover etc.||Select insurance companies having various add-on benefits, and also, riders to buy a car insurance policy online.|
After comparing several policies from different car insurance companies. Also you can buy car insurance online from an IRDA registered insurance company or insurance broker.
There are several benefits you get when you buy car insurance online. A few of them are mention below:
Unbiased opinion while buying or renewing online:
When you buy a car insurance policy online, you are not influenced by vehicle dealers or any specific insurance company. Also, you can do your own research or get help from expert advisors in choosing the best car insurance for your vehicle.
Several insurance options available for comparison:
Also, You can view and compare car insurance in India on several parameters for different insurance companies at your convenience anytime and anywhere on the internet.
Buy a policy without paperwork and minimum documents:
So, You can buy a new policy or get an existing car policy renewal online at the comfort of your home in a few clicks and also, with least documents. As well as, The policy documents are received instantly on payment directly from the insurance broker and insurance company.
Direct payment to Insurance companies through secured payment gateway:
While it is true that there are several online frauds. You need to make sure that you are also on the official website of an insurance company or insurance broker to make the payments. So, You can make payments online by debit cards, credit cards, net banking, e-wallets on the secured payment gateways offered by insurance companies and brokers.
5. Making a claim application online:
You can even also request a claim online in a few steps at the comfort of your home. So, the insurance company arranges a staff visit to verify the damages and the claim is process to your bank account on approval.