Compare car insurance policies online & choose the best one
It took some time, but you've finally saved enough to purchase your dream car. Now that you're probably browsing through the variants and colours, this is also an excellent time to learn about car insurance. As you might know, third-party insurance is mandatory by law in India. But you must consider purchasing a comprehensive policy for better coverage and additional benefits.
But just like most first-time buyers, you'd have several questions about car insurance. Questions like what are the types of car insurance, what are add-ons, what is NCB, and why
is it important to compare car insurance? The below points will help you understand the importance and benefits of purchasing car insurance.
What is Car Insurance?
Car insurance, also known as motor insurance, is a type of insurance policy that you purchase for your car and other types of four-wheelers. It offers financial protection in case your car is involved in a road accident. With the help of valid car insurance, you can claim for the damages, losses, and injuries arising from road accidents.
What are the Major Car Insurance Categories in India?
To select the best car insurance online, you should also know the types of insurance available for four-wheelers. Car insurance in India is divided into two categories- third-party insurance policy and comprehensive policy.
As mentioned earlier, third-party insurance, which is mandatory for car owners, covers third-party damages and losses. The premium for third-party car insurance is regulated by the IRDAI (Insurance Regulatory and Development Authority of India). Comprehensive insurance policy, on the other hand, covers third-party and own damages.
All the different types of car insurance policies that you can find online fall under these two insurance categories.
What is Car Insurance Claim?
If you have valid car insurance and you get involved in an accident, you need to file or register a claim with your insurance provider. You must fill a claim form and meet the basic criteria of your insurer to file the claim. The claim can be submitted online or by visiting the nearest branch office of the insurer.
Claims are of two different types- cashless and reimbursement. For cashless claims, you must get your car repaired at one of the network garages of the insurer. When you compare car insurance policy online, give special attention to the total number of network garages of the insurer. If for some reason you were not able to go to a network garage of your insurer, you can get your car repaired at any of the garages and pay for the damages from your pocket and get the reimbursement later. You must submit the original repair to claim compensation.
What is NCB in Car Insurance?
Another crucial thing you should know about car insurance is NCB or No Claims Bonus. Let us assume that you have purchased a new car insurance policy that has a one-year validity. Now, at the time of renewing the policy if you have not filed any claims in the previous year, you are entitled to receive NCB or discount on renewal premium.
The NCB increases with every claim-free year up to the 5th year. The IRDAI regulates the NCB too, and every insurer is required to offer this discount. Let us check how NCB increases every year-
Claim-Free Year |
Discount |
|---|---|
1st |
20% |
2nd |
25% |
3rd |
35% |
4th |
45% |
5th |
50% |
So, if you do not file any car insurance claims for 5 years, you are entitled to receive a discount of 50% on the insurance premium for the 6th year. But note that the NCB will not increase above 50%. If you do not file any claim in the 6th year as well, the NCB will remain the same at 50% for the 7th year.
What is Car Insurance Add-ons?
Consider add-ons as smaller versions of insurance purchased for a specific purpose. They help you increase the scope of coverage of your car insurance policy at a nominal cost. You can buy them along with your car insurance policy. Most insurers now offer several different add-ons.
Some of the most popular options are:
- Engine Protection
- NCB Protection
- Zero Depreciation
- Key Protection Cover
- Accessories Cover
- Accident Cover
- Roadside Assistance Cover
Why Should You Compare Car Insurance Before Buying?
If you are buying car insurance for the first time, it is paramount that you compare the available options online. It is only when you compare car insurance online that you can select an insurance policy that offers the best value for your money.
Here are some of the top benefits of comparing car insurance:
Huge Savings
While the IRDAI regulates the premium of third-party insurance, you will find considerable differences in the premiums of comprehensive policies. When you compare policies online, you can check the features and benefits of each policy and chose the best policy meets your needs and fits within your budget.
Understand the Coverage in Detail
Comparing the features and benefits of different policies will help you understand the insurance coverage in detail. Different policies offered by different insurers have multiple inclusions and exclusions. By comparing the policies, you can easily know what a particular policy does or does not cover.
Check Available Add-ons
Add-ons are an excellent way to increase the coverage of your car insurance policy. But not all insurers offer an extensive range of add-ons. By comparing the top options online, you can see which policy is available with the add-ons that would benefit you.
Know the Total Network Garages
Cashless claims are more convenient as compared to reimbursement claims. But the cashless facility is only available at network garages of the insurer. So, before purchasing car insurance, you can compare different insurers to select one that has a high number of network garages. An insurance company such as IFFCO Tokio provides cashless service at more than 4,300 garages.
Also, make sure that at least a few of the network garages of your insurer are close to your home/office.
Purchasing Car Insurance for the First Time
It took you months and years to save enough money for your dream car. Needless to say, you’d do everything possible to keep your prized possession as protected as possible. The best car insurance policy can significantly help you in this endeavour.
Now that you already know the basics; start comparing car insurance policies of top insurers to select the best insurance cover for your car.
