Tips To Buy Car Insurance Online

• Posted by Aditya Sehgal March 22, 2018 - Filed in Other - #Car Insurance  #Buy Car Insurance  - 258 views

  Buying a car is a substantial investment, and it is important to have your costs covered in the event of car damage due to natural or man-made calamities. As per the Motor Vehicles Act, 1988, it is mandatory for the car owner to have a third-party insurance cover. You can easily buy car insurance online. You can save time and compare car insurance prices by opting for instant car insurance.

  According to the Boston Consulting Group (BCG) report 2014, the online motor insurance market stood at around Rs. 250 crore, out of the total Rs. 700 crore online insurance market in India in 2014. The BCG report estimates that the turnover of digital insurance would grow to Rs. 15000 crore by the year 2020.

  Increasing internet penetration and ease of transaction, is helping the online car insurance segment to grow rapidly. Here are some tips to buy car insurance online:

  Read The Car Insurance Coverage Thoroughly

  It is important that you know what is on offer, and what coverage you require for your car. There are basically three types of coverage. Comprehensive car insurance provides coverage for you, your car, and the third-party liabilities. It covers damage to the car due to both natural and man-made calamities.

  Collision coverage considers incidences of collision, and does not cover theft and other reasons of car damage. Third-party insurance takes care only of the third-party liabilities and does not cover the driver or the car. You must take cognizance of add-ons too. These may include:

  - Long term care insurance through personal accident cover

  - Engine protection

  - Zero depreciation cover

  - Roadside assistance coverage

  Most car insurance companies enlist the benefits, and features on their websites. Since instant car insurance involves very little human mediation, you need to be thorough in your research.

  Check For The Reputation of the Insurer

  Before you get car insurance, you need to be sure of the insurer’s reputation. You can peruse reviews for the motor insurance policy as well as the insurer. There are various ratios to consider, some of which are:

  -Incurred claim ratio (ICR).

  -Persistency ratio

  -Solvency ratio

  ICR is the total value of all claims paid by the insurance company divided by the total amount of premium collected by them in the same period.

  Persistency ratio highlights the volume of business that a life insurance company can retain. Solvency ratio highlights how much of the assets the company must absorb.

  For example, the Incurred Claim Ratio of Bajaj Allianz is 72.3% for the year 2015-16. It has been able to maintain a solvency ratio of 261% as on 31^st March 2017.

  Premium Comparison

  Car insurance quotes comparison for various policies vis-à-vis their benefits is an important step to transact over the internet. A low premium may not be offering maximum benefits and add-ons. You can evaluater premiums online.

  The premiums will vary according to the engine capacity, car model, and the location. If you opt for the installation of telematic devices, then your driving behaviour will also affect the car insurance quotes. Safe driving can help you reduce your premiums.

  Insured Declared Value

  Insured Declared Value (IDV) is the maximum sum assured provided by the insurer on the theft or total loss of the vehicle. IDV is the current market value of the vehicle. It may vary across the different insurers. Online premium calculators help to determine IDV at ease.

  These tips will help you get car insurance online. Several insurers let you buy as well as renew your car insurance over the internet.

  Buying car insurance online provides convenience and more choice. Features and price comparison allow you to make informed decisions.