Follow these five steps to buy car insurance online in India

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Updated on Nov 29, 2022

Maintaining a valid car insurance policy is a custom as per the current mandate of the Motor Vehicles Department. Failing to do so is a punishable offence. You have to consider and follow these five steps to buy car insurance policy online in India:

1. Types of insurance

When you are willing to buy car insurance online or offline, you have to study the types of car insurance operating in the market—the third-party policy and the comprehensive policy. The third-party plan covers the financial liabilities of the third party incurred by your vehicle. Maintaining this policy is mandatory as per law. The comprehensive policy not only covers the third-party damage but also covers the damage costs of you and your vehicle in case of an accident.

2. Research and comparison

The digital platform gives you the liberty to research and compare among several plans of different companies. You can read the customer reviews online to assess the performance and service of any particular company or plan. Without any external influence, you can make an unbiased decision when you buy car insurance online. You can even access and compare insurance brokers online.

3. Premium-deciding factors

The car insurance premium depends mainly on three types of risks:

  1. The risk relating to the type of the vehicle implies that the advanced and the newly introduced cars are considered riskier making the premium value higher. The fuel type is also a determiner in this respect.
  2. The location-related risks include the registration zone of your vehicle. Zone 1 involves the eight metro cities of the country while the rest falls under Zone 2. Zone 1 registered cars have higher premium values.
  3. The driver-related risks include the age and the marital status of the driver, and it influences the premium. This is because married people are comparatively less involved in road accidents. Moreover, younger people are more likely to get involved in accidents than older ones.

These are the major determiners for new car insurance. You can utilize the internet to compare insurance brokers.  For policy renewal, you have to consider the claims history. If you claim in one year, the premium value of your auto insurance will automatically rise next year.

IDV is calculated on the new car by subtracting the total depreciation cost according to the vehicle age from the sale price as determined and charged by the manufacturer. For the cars which are older than five years, the current market value is considered to be the IDV.

4. Premium-reducing factors

The factors that are responsible for the reduction of the premium include voluntary deductibles. You can choose this option among four different slabs up to 15,000 INR. Once you have surpassed this voluntary excess amount as per your choice, your concerned insurer is liable to pay the claim. With the help of this feature, you can enjoy a reduced premium of up to 30%. You will get hold of the entire picture when you buy car insurance online.

NCB is also an efficient way of premium reduction. You enjoy this benefit for one claim-free year. In case you wish to sell your car, you can transfer your NCB and pay a deducted premium on the policy of the new car.

You can also avail of several discounts as offered by the company and enjoy a reduced premium.

Some additional coverages are also helpful like Zero Depreciation Cover, personnel cover, etc. You can buy car insurance policy online to avail enhanced benefits.

5. Claim

Only if you maintain an active plan, can you raise a claim. When you buy car insurance policy online or offline, you must ensure all the coverages and exclusions of the particular plan.

A proper car insurance plan ensures a solid financial backup in case of unprecedented accidents. These factors help you to judge the best-suited policy for your car. You can also utilize expert advice after you compare insurance brokers online.

Also read: Private Car Insurance Policy – Everything You Need to Know

Found this post informational? Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance and Investment section. You can visit PayBima to Buy Insurance Online.

Jul 14, 2021
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PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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