The pandemic has changed the way we interact with financial products and services. When Covid-19 emerged, Indian insurance companies considered helping customers through virtual and online assistance. This has led to a dramatic increase in the consumption of insurance services digitally.
If you are considering purchasing your auto insurance online, there are four simple steps you should take.
Choose your type of insurance
Auto insurance protects your vehicle against unforeseen risks such as traffic accidents by providing financial protection for which a premium is paid regularly. The insurance premium depends on various parameters such as the value of the car, the type of coverage and the classification of the vehicle, among others.
Before deciding on your auto insurance plan, you should know about the types of auto insurance offered by insurers.
1. Third party insurance
Third party insurance, often referred to as “insurance under the law”, is compulsory under the Motor Vehicle Act 1988. In this insurance, the insurer provides protection against any damage to the vehicle, personal property or property. bodily injury to third party. The third party obtains reimbursement for the damage and the insured is protected from the financial burden resulting from such damage.
2. Comprehensive auto insurance
Comprehensive auto insurance is a comprehensive auto insurance plan. This is an all-inclusive auto insurance policy that covers the insured driver against third party damage, loss, and personal injury. For example, it covers losses such as accident, natural disaster, fire and theft.
3. Pay while you drive
Pay as you drive is a kind of comprehensive auto insurance plan that provides coverage for your own car damage and third party liability and charges a premium based on the use of the car.
This car insurance plan allows the insurer to track your usage and driving habits through the use of telematics and the premium is billed accordingly when you are assessed as a high risk or low risk driver.
The market regulator Indian Insurance and Regulatory Authority of India (IRDAI) has deployed this plan on a pilot basis for a period of one year in 2020. Several insurance companies have started to offer the pay-as-you-go insurance policy in accordance with the the regulator’s sandbox proposals that were approved last year. The proposals are likely to be extended for the next two years if the recommendations of a draft amendment are accepted.
The main features of this plan include:
- Policyholders who have multiple cars, not all of which are driven frequently, can take advantage of this.
- Currently, there are three slabs — 2,500 km, 5,000 km, and 7,500 km — because the number of kilometers driven and the premium is different for each of the slabs.
- The third party premium (TP) is set according to IRDAI standards but discounts are offered on the damage component (OD) of the policy.
Evaluate your additional coverage
You can increase the protection of their four-wheeled vehicle insurance by using supplemental coverage. It aims to add an extra layer of insurance to your comprehensive auto insurance policy.
Common supplemental coverage plans that can be added to your comprehensive insurance policy include:
1. Zero damping
Depreciation is basically the decrease in the value of your vehicle due to natural wear and tear and its age. As a result, the value of these coins also decreases.
When a customer buys a car and uses it for a few days, the value of the car drops to 91% of the original market value. The value of the car will drop from year to year and this is how the settlement amount is decided by your insurer after depreciation.
When you purchase additional coverage without amortization, it provides you with insurance coverage without any deduction based on the amount of amortization.
2. Motor protection
An engine is the most expensive and important part of any car. As a general rule, damage to your car’s engine is not covered by the usual all-risk insurance policy. If you want to further protect your car’s engine, you can opt for an engine protection add-on.
3. Invoice coverage
Invoice coverage is also known as Invoice Return Coverage (RTI) or Invoice Protection Add-on. In the event of total loss or theft of your vehicle, your insurer will pay you the amount indicated on the invoice for the purchase of your car as compensation, including road tax.
4. Roadside assistance
This add-on comes in handy when you need assistance in the middle of a trip. If you have additional roadside assistance, you can call your insurance company and ask for help in the event of:
- Dead battery
- Spare keys
- Flat tire
- Small repair
- Towing services
- Fuel assistance
- Taxi and accommodation services
Know the Hidden Thorns Not Covered by Your Auto Insurance Policy
Due to a heavy document laden with jargon and text-heavy processes, customers tend to avoid a full policy check. This results in disappointment at the time of complaints.
The hidden thorns are the exclusions of your auto insurance policy. These include:
- Any damage caused to your car while driving under the influence of alcohol or drugs will not be covered.
- Damage to the car during war, terrorist attacks and similar situations is often not covered.
- Any damage to tires, tubes and motors, unless damaged by accident.
- Any damage due to contributory negligence – for example, you forget to lock your car and your car is stolen.
- Driving without a valid license or on the wrong side of the road.
How to buy your auto insurance online
You need a set of documents and basic information to feed or submit when purchasing insurance. Follow these steps to buy or renew your auto insurance online:
Enter your car number or select your car
The first step is for the customer to enter their car details in columns on your insurer’s website dedicated to collecting information such as:
- Model name and number
- Registration number
- Age of your car
- Registration city
Answer a few simple questions about your car
After filling in the details, insurance companies will ask you for information such as if your auto insurance has already expired or if you remember when you made your last claim.
Select the auto insurance plan you like
- You can select your declared insured value (VDI), which refers to the maximum claim an insurer will pay if your vehicle is damaged beyond repair or is stolen. This is the current market value of the car and is calculated by deducting the amount of depreciation from the manufacturing price of the car.
- Spend time reading the terms and conditions of the policies.
- Apply the offers that are available to you to get the price that suits your budget.
- Choose your package.
- Make the desired payment.
- Check your insurance policy details sent to your email inbox.
Compare and choose your auto insurance policy online
Before you invest your money, you should compare other policies online to find the best deal that meets your needs.
- Once you know the type of coverage you need, the next step is to take a look at the websites of the insurers and assess who offers the best for the lowest price.
- For a comprehensive policy, assess claims settlement, premium, coverage and features.
- Check out the value-added services. These include special facilities such as breakdown assistance, in which the insurance policy provides a hotline number for repair, drop-off and roadside assistance.
- Evaluate the credibility of your insurance provider by reading reviews and customer reviews online. This activity will give you an idea of your insurer’s claims settlement activity.
Buying auto insurance online is not only easier because it involves less paperwork, no physical presence and faster responses, but also makes the whole process more transparent.
The Covid-19 pandemic has prompted Indians to actively purchase auto insurance policies online. This digital adoption means that you will have more choices and that your chances of purchasing an insurance policy that benefits you will be greater.