How to choose the right car insurance coverage when buying online?

Whether you’re purchasing car insurance for the first time or planning a car insurance renewal, making informed decisions can save you from unnecessary financial burdens

New Delhi [India], December 24: Buying car insurance online is not just a convenience; it’s a necessity. With just a few clicks, you can secure your vehicle, protect yourself from unforeseen circumstances, and ensure compliance with legal requirements. But how do you determine the right coverage when faced with so many options?

Whether you’re purchasing car insurance for the first time or planning a car insurance renewal, making informed decisions can save you from unnecessary financial burdens.

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Let’s explore the key factors to consider when choosing the right car insurance coverage online.

1. Understand Your Coverage Needs
The foundation of any car insurance decision lies in understanding what you need. Broadly, car insurance can be divided into two main types:

● Third-Party Car Insurance: Mandatory by law in India, this policy covers damages caused to another person’s property or injuries sustained by others in an accident
involving your car.
● Comprehensive Car Insurance: This all-inclusive coverage includes third-party liability and extends to damage caused to your vehicle due to accidents, natural disasters, theft, and even vandalism.

For new car owners or those with high-value vehicles, a comprehensive policy is recommended. On the other hand, if you’re renewing insurance for an older car, third-party insurance might suffice. Evaluate your car’s age, usage, and potential risks before deciding.

2. Explore Add-On Covers
When you buy car insurance online or offline, insurers often provide the option to include add-ons to enhance your coverage. These can make a significant difference in safeguarding against specific risks. Common add-ons include:
● Zero Depreciation Cover: Reduces your out-of-pocket expenses by covering the depreciation of parts during claims.
● Engine Protector Cover: Ideal for vehicles in flood-prone areas, this protects against damages to the engine caused by waterlogging or mechanical breakdowns.
● 24/7 Roadside Assistance: Ensures you’re never stranded in case of emergencies like a flat tyre or breakdown.
● Consumables Cover: Covers the cost of consumables like engine oil, brake fluid, and air conditioner gas, which are often excluded in standard policies.

While these add-ons may increase the premium, they provide value-added protection. Opt for those that align with your driving habits and geographical location.

3. Compare Policies and Premiums
One of the advantages of buying car insurance online is the ability to compare various policies side by side. Use premium calculators to evaluate the cost of different plans and the benefits they offer. Pay attention to the Insured Declared Value (IDV) of your vehicle, as it determines

the maximum claim amount in case of total loss or theft. When comparing premiums, don’t just focus on the price. Assess the inclusions, exclusions, and claim settlement ratio of the insurer. A slightly higher premium with comprehensive benefits and a hassle-free claim process is often a better choice.

4. Consider the Policy Term
While annual policies are standard, many insurers now offer multi-year car insurance policies. Opting for a long-term policy can save you from annual renewals and provide savings on premiums. If you’re considering car insurance renewal, check if your existing policy offers benefits for opting for a long-term plan.

5. Check the Claim Process
The ease of filing claims is a critical aspect of choosing the right car insurance. Look for insurers with a high claim settlement ratio and simplified claim procedures. Online claim filing, cashless garage networks, and 24/7 assistance are features that indicate a customer-friendly claim process. Bajaj Allianz General Insurance Company, for example, offers a seamless online process for claim filing and policy issuance, ensuring minimal hassle for policyholders.

6. Beware of Policy Exclusions
Every car insurance policy has its limitations. Common exclusions include damages caused by driving under the influence of alcohol, consequential damages, or wear and tear. Understanding these exclusions will help you avoid unpleasant surprises during a claim. Before purchasing a policy or opting for car insurance renewal, read the terms and conditions thoroughly to ensure clarity on what is covered and what isn’t.

7. Utilise No Claim Bonus (NCB)
If you’re renewing your car insurance and haven’t made any claims during the policy period, you’re eligible for a No Claim Bonus (NCB). This reward reduces your premium for the next policy term, making it a significant cost-saving benefit. Many insurers allow you to retain your NCB even if you switch providers during renewal.

8. Prioritise Convenience and Accessibility
Online platforms have made it incredibly easy to buy and renew car insurance. Look for features like:
● User-friendly interfaces
● Instant policy issuance
● Multiple payment options
● Access to policy documents and add-ons in one place

These conveniences can make managing your car insurance simple and stress-free. Choosing the right car insurance coverage when buying online is a crucial decision that can save you from financial and legal troubles.

By understanding your coverage needs, exploring add-ons, comparing policies, and leveraging tools like premium calculators, you can ensure that your policy offers maximum protection. Whether you’re a first-time buyer or planning a car insurance renewal, always prioritise a plan that aligns with your driving habits and financial goals.

Take control of your car insurance needs today and drive with confidence, knowing that you’re protected against life’s uncertainties.

*Standard T&C Apply

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.

• Claims are subject to terms and conditions set forth under the motor insurance policy.
• All savings are provided by the insurer as per the IRDAI-approved insurance plan.
• Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.