How to buy or renew car insurance online? – Advisor Forbes INDIA


As a car owner in India, it is mandatory to have at least third party car insurance cover to drive on public roads as per the Motor Vehicle Act. Additionally, personal damage auto insurance coverage provides a financial cushion against theft and accidental losses that may occur while driving or parking. The majority of car insurance policies are purchased for one year.

Basically, an auto insurance policy is a legal contract between the insurance provider and the car owner. By this agreement, the insurer undertakes to bear the financial losses that an individual may incur in the event of an accident or other damage to his car by the Perils covered as mentioned in the wording of the policy.

The insurance company also covers damages that may occur if the individual accidentally injures/damages a third party person or property and thus becomes responsible for paying for their injuries or damages.

Different types of car insurance

Broadly speaking, car insurance policies in India can be divided into three main categories:

  • Full car insurance policy: As the name suggests, a comprehensive auto insurance policy provides comprehensive insurance protection. Under the policy, coverage includes damage specific to the insured vehicle as well as mandatory third party liability. In addition to this, the insurance policy also provides protection against damage or loss due to any natural calamity such as earthquake or flood and malicious damage.

The policy also provides personal accident insurance for owners or drivers which covers all expenses resulting from accidental injury or disability while driving the insured vehicle. Comprehensive car insurance coverage is always recommended.

  • Autonomous car insurance policy with third party coverage only: Third party coverage is the most basic form of auto insurance. Such a policy promises to pay for the death, disability or injury of a third party as well as losses that may occur to certain third party property from the insured vehicle. As mentioned earlier, the Motor Vehicle Act requires every vehicle owner to insure their car for such scenarios.
  • Autonomous auto insurance for personal damage only: The Insurance Regulatory and Development Authority of India (IRDAI) has introduced a new standalone personal injury motor insurance in September 2019. Under this cover, the insured can only avail financial assistance from the insurer for his own damage to the insured vehicle. resulting from accidents or other perils covered by the policy. Own damage may include traffic accidents, loss due to malicious damage or natural calamities, theft, fire or any other accident.

Get an insurance policy for your new car

Traditionally, auto insurance was offered offline. However, it has become easier than ever to buy an auto insurance policy online that offers different coverages at reasonable premiums with technological advancements along with different add-ons. Another advantage of buying auto insurance coverage online is to choose from a wide range of options and select a plan that best suits your needs.

So, when buying a new car, it is always advisable to check the coverage online instead of just blindly following the offer available at the dealership. In such cases, you can choose and customize the insurance coverage according to your needs.

Renewal of your car insurance policy

On the other hand, if you have an auto insurance policy that needs to be renewed, it makes sense to search the internet and explore the multiple renewal options available in the market. There are several key indicators that can help you gauge the renewal premium with different coverages available. Some of the critical points are discussed below:

  • Listening to your needs: When your car insurance policy is up for renewal, it is advisable to compare the different plans and select the one that best suits your needs. Please note that simply choosing a plan with the lowest premium may not be a good decision as the coverage may not meet your needs. It is therefore essential to understand your needs when renewing your insurance cover.
  • Benefit from the no-claim bonus: If you have made no claims during the term of your contract, the car insurance provider offers a “no claims bonus” or NCB at the upcoming renewal. This bonus accumulates for each “no claim” year. Insurance companies may offer up to 20% to 50% discount on renewals for successive claim-free years. Be honest in disclosing this, otherwise it may impact the settlement of the claim at a later date.
  • Online renewal: It is often advisable to renew your existing car insurance policy online directly through your insurer’s portal. This helps you bypass intermediaries and subsequent commissions unlike the offline mode.

Steps to buy new car insurance online

Here are the steps you can follow to buy an auto insurance policy for your

Step 1: Visit the website of the insurer that best meets your needs.

Step 2: Fill in your personal information, such as mobile number, email address, etc., and your car details, including engine number, chassis number and vehicle number. registration.

Step 3: Select the insurance coverage plan and options (if applicable) of your choice

Step 4: Pay the premium amount through the online mode and complete the process.

Once the process is complete, you will receive a confirmation email from your insurer along with a digital copy of your insurance policy.

Steps to Renew Your Existing Auto Insurance Coverage Online

Here are the steps you can take to renew your car insurance coverage:

Step 1: Log in to your insurer’s website

Step 2: Select the vehicle insurance renewal option

Step 3: Enter policy details – you can choose to include or exclude add-ons as needed.

Step 4: Pay the premium through the online mode and complete the renewal process.

Once the process is complete, your insurer will send you a digital copy of the policy and payment receipt.

Benefits of buying or renewing car insurance online

Buying an insurance policy or renewing an existing one online has several advantages. Let’s take a look at some of the main benefits of buying auto insurance online:

  • No paperwork: One of the biggest advantages of buying insurance coverage online is that there is little to no paperwork involved. Proposal forms are digitally completed, scanned and sent to your registered email address. Therefore, buying the cover online saves you the time and effort of signing multiple pages and also helps promote a greener environment.
  • Instant quotes: Online tools like car insurance calculators can give you instant quotes on your new purchase or renewals. You just need to fill in the details and get all the necessary information with just one click.
  • Coverage control: When you buy an online insurance policy for your vehicle, you do so directly with the insurer. This gives you better control over the cover you want to opt for. You can bypass deceptive middlemen and cut middlemen in the process to save on commissions during the process.
  • Convenient and fast: Renewing your insurance policy online can be done quickly and easily. You just need to enter the existing policy number and other required details and confirm the coverage details. Likewise, all of this can happen when you are in the office, at home or in a coffee shop.
  • Offers and discounts: An important feature of buying a new car insurance policy online is the different offers or discounts you can avail. These offers are also available during the renewal process. You can save on your premium amount or add additional coverage inexpensively by using these discounts or offers, which is usually not possible with traditional offline methods.
  • Instant coverage: When you make an online purchase of a car insurance plan, the policy is issued almost instantly. You instantly receive the digital copy to your registered email address, which can be printed for documentation.
  • Comparison of several packages: Another important benefit of buying auto insurance online is the ability to compare many plans and select the one that best suits your needs. Having a wide range of options can allow you to better understand your needs and gain insight into the different coverages on offer to make a more sophisticated choice.

Things to keep in mind when buying car insurance online

  • Choose the right cover: If you are buying coverage for a new car, it is advisable to purchase comprehensive coverage that will protect you from multiple uncertainties. However, in the case of a well-used car, you can simply opt for the compulsory civil liability guarantee to comply with the regulations.
  • VDI: The IDV or Insured Declared Value of the car involves the ex-store price of the vehicle less depreciation based on the age of the car. The insurer’s responsibility is to cover losses based on the car’s IDV. So, when purchasing a new policy or renewing an existing one, check the IDV offered by the insurer. Select the LTI that approximates or matches market value.
  • Select the necessary add-ons: Add-ons such as zero depreciation or engine protection coverage are some of the additional coverage options provided by insurance companies. Select those that are needed to improve your coverage.
  • Claims settlement rate of your insurer: Whenever you purchase a new car insurance policy, check the insurer’s claims settlement ratio (CSR). A higher CSR indicates that the insurance provider settles the claim quickly and transparently and provides a good overall quality of service.

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