Answered: Your Most Burning Questions about Car Insurance
The car you own today comes with a lot of suggestions from friends and family members. Above all, you have yourself spent so much time researching about the jazziest colors, latest version, mechanism and snazzy safety features etc. But little did you know about the car insurance policy which keeps the vehicle guarded against all the financial losses. Before zeroing down on the car insurance policy, people miss the crucial step of asking questions and jump on the premium directly. This read will help you with all the answers to red-hot questions on car insurance policy till date. Read on to know more.
These questions will help you understand online car insurance shopping even better.
- Why is car insurance policy important in India?
Most of the drivers are aware that, car insurance is a mandate on Indian roads. But a car minus a valid a car insurance policy is subject to heavy fines as per the Indian Law. Therefore be wise, and disburse that amount on your car insurance premium than on hefty penalties.
- What are the things to consider while comparing car insurance online?
Apart from some background research, and basic terminologies one should keep the below points in mind.
- Check if the insurance, Insured Declared Value (IDV) is favorable enough to pay at the time of total loss or theft of your car.
- Choose add-on covers only if needed. Say for instance, it would make sense to opt for a zero-depreciation cover for brand new cars.
- Apply correct NCB (no claim bonus) while comparing car insurance.
- What is the highest amount of NCB discount one can avail?
Please look into the below chart, which will explain, how NCB is placed each year. One can avail maximum 50% of NCB on 5 continuous claim free years.
|All Types of Vehicles||% of Discount on OD* premium|
|No claims have been made or are pending at the end of the year or at the time of policy renewal||20%|
|No claims have been made or are pending at the end of the year or at the time of policy renewal||25%|
|No claims have been made or are pending at the end of the year or at the time of policy renewal||35%|
|No claims have been made or are pending at the end of the year or at the time of policy renewal||45%|
|No claims have been made or are pending at the end of the year or at the time of policy renewal||50%|
- Will claiming take away my accumulated NCB?
Yes, the NCB becomes zero on claiming on your car insurance policy. Which means next year when you renew the policy, you would be charged slightly higher. Therefore it is important that you drive carefully.
- Will my premium remain the same if I stick to the same car insurance provider every year?
- No, None of the insurance providers offer retention or royalty discounts online. Reason being, the third party premium has seen an increasing trend since the past few years. This is because of the increase in claim ratio.
- Another reason could be that, you may be opting for unnecessary covers.
Get better results by following 3 simple steps
Follow these tips to make your car insurance purchase like a cakewalk.
- Keep yourself updated
In the age of internet and instant connectivity, research and information is the key. At the click of a button there is so much information available online, that can confuse your buying decision. Hence it is important to find about the insurance company, know about the claim settlement ratio and availability of good customer support team.
- Don’t be in a hurry
This is a thumb rule; don’t wait for the eleventh hour to buy your car insurance policy. Renew your policy way before renewal, so that you have ample of time to decide on best of the plan.
- Comparing is the key
Most of the insurance companies have their online presence, but going on each website and zeroing on one is grinding. However, having all the insurance companies with their features, benefits and quotes under one roof will answer all your questions. Thus, narrowing your search and finalizing the plan by visiting online broker’s site such as Coverfox.com would be like a cherry on the cake!
Everything you ever wanted to know about car insurance policy
Buying car insurance policy online comes with a set of benefits like…
- It saves your time and energy.
- You’re ought to be spoilt with a wide range of plans.
- Helps you in saving tremendously.
- You can make better decisions by comparing online.
- Refrain from making smaller claims to save on your NCB.
Your quench on car insurance questions ends here. Applying the above tips will help you find a satisfying car insurance plan for sure.