Buy or Renew Car Insurance Online

Buy or Renew Car Insurance Online

What is Car Insurance?

An Insurance to your vehicle, a policy that will protect you from any financial losses which may arise due to unforeseen risks that could cause due to accident, stealing, theft, any 3rd party liability or many more.

It’s a legal contract between you and the insurance company who is liable to protect you in event of any financial losses due to accident, theft etc. As you have taken policy and paying premium, the company agrees to pay you the losses which may happen due to any unforesee reason.

Why do we need Car Insurance?

As stated above, in the event of any losses, say car damage due to accident, theft or 3rd party liability..to safeguard yourself with any financial losses, an insurance, a vehicle insurance will help you overcome this problem.

As per government law, it is mandatory to buy a car insurance irrespective of whether you are using vehicle for personal purpose or commercial purpose, say CAB/ TAXI.

Benefits/ Coverage of Car Insurance?

There are multiple benefits of car insurance, in which few are given below.

  1. You are protected with any kind of damage like theft, fire, accident etc…
  2. Your life is covered along with car which means in case if some mishap with you, your family will get benefit of insurance which is called personal accident cover.
  3. The insurance you take is covered entirely in any city under any garage.
  4. No claim bonus which means in case you did not claim any loss in a year, you will get some additional benefit of less insurance pay in next premium.
  5. Third party liability benefit and so on

Other benefits are covered:

  1. Any natural calamities, like flood, storm, earthquake, lightening…your car is insured and you will get paid in such cases.
  2. 24×7 road side assistance which you can get covered with minimal payment for next 5 years.
  3. Zero depreciation cover which means your car is 100% covered in case of any damage but until first 3 years, you only need to pay a minimum payment of say Rs.1000 as processing fee charges for a claim of any amount say, Rs. 20,000- 50,000 and so on
  4. Coverage of LPG/ CNG fuel kit
  5. Loss related to electrical/ non-electrical is also covered.

Add-on Benefits with car insurance policy

There are some benefits which does not come or cover under normal policy and you need to opt it separately.

I have already share it in above heading of car benefits and coverage but make it separately for more information

  1. Zero dip which is a general term using by anyone called as Zero depreciation cover- This cover ensures comprehensive coverage without factoring in for depreciation. If your car is damaged due to different reasons say hit with another vehicle/ collision and you are going to file a claim, the insurer will get covered with the entire cost.
  2. No claim bonus- In general it is called as NCB which means a discount in premium offered by insurance company if an insurer does not claim any single claim during the insurance tenure.
  3. Return to Invoice- This is an add-on option which covers the gap between the insured declared value and the invoice value of your car along with the registration and other applicable taxes. RTI helps you in fetching purchase value (on road price) of the car in case of theft or total loss.
  4. Roadside assistance- This is one of the best service which helps you overcome any car problem during journey alone or with family related to anything whether it is technical or petrol/diesel need, puncture, car battery issue or anything. Whenever you have car trouble on the side of the road, in a parking lot, at work or even at home. If you are stranded, this add-on will help you ensuring you safe in all means.
  5. Engine protection- Normally, any damage to car engine is not covered under a regular Comprehensive car insurance policy. An engine is the most crucial part of a car, also one of the most expensive. Therefore, it is important to cover your car’s engine under your car insurance policy. You can do so by purchasing an Engine Protection Add-on.

What is not covered under car insurance?

Under any standard car insurance policy below damages are not covered in general:

  • War
  • Terror attack
  • Invasion
  • Foreign enemy action
  • Civil war
  • Mutiny
  • Rebellion
  • Hostilities
  • Nuclear weapons

There are many other damages which are not covered, say:

  • Any accident or damage to car in case of drunk and driven or in influence of drugs
  • Depreciation and wear and tear
  • In case you are using vehicle for racing, or commercial purpose which is not allowed for personal cars
  • Damage to accessories, tyres, tubes etc.
  • Any breakdown to electrical or mechanical
  • Any damage when policy is not in force
  • Damage while driving car without valid license
  • In case of any item stolen from car
  • Own damages for third party policy holder
  • Consequential damages, say any damage due to engine due to car driving incorrectly.
  • Contributory negligence, say driving a car in a flood which is not recommended
  • Add-on benefits not opted

Overview of car insurance- Types of car insurance

There are 2 types of car insurance available:

  1. Comprehensive Car insurance
  2. 3rd party Car insurance

Comprehensive Car insurance is an insurance policy that covers you from both third-party damages and losses and own damages. This includes protection from unforeseen losses such as amid an accident, natural calamity, fire or theft.

3rd party Car insurance is a mandatory requirement by law. It covers only damages to the third-party. Under third-party insurance, you do not get compensation for the damages to your car.

Below table will give you rough idea on what is covered/ not covered in both types of Insurance.

This is just a sample, to get more details, you must contact your Insurance company to have better visibility

Damages/ LossedThird PartyComprehensive
Damage/losses to own vehicle due to an accidentX
Car Theft/ StolenX
Damage/losses due to fireX
Comply with the law of the land.
Damage/losses due to natural disasterX
Damage to the vehicle of third party and property
Customization of Insurance planX
Personal Accident Cover (if opted)
Compensation due to Death/ disability/ Injury due to Third Party accident
Table showing difference in between 2 Insurance Covers

Best car insurance in 2020?

Best Car Insurance Companies in India with Incurred Claim Ratio & Network Garages with cashless option

Incurred Claim Ratio– It refers to the net claims paid by an insurance company as against the net premiums earned. It is basically the overall value of every claim a company has paid divided by the total sum of premium collected during the same period.

Example: For instance, an ICR of 85% implies that the company has spent Rs. 85 on claims for every Rs 100 collected as premium.

An ideal ICR range should be between 70% and 90%, which indicates a healthy settlement of claims by the insurer against the premium collection.

Privately Owned Car Insurance companies

Name of CompanyICRNetwork (Garages)
HDFC Ergo General Insurance company82%6800+
Future Generali Car Insurance73%2500+
IFFCO Tokio Car Insurance87%4300+
Bajaj Allianz Car Insurance77.61%4000+
TATA AIG General Insurance Company Limited70%Major Garage across India (Count not available)
ICICI Lombard General Insurance Company Limited76%7800+
Bharti AXA Car Insurance75%5200+
Reliance General Insurance Company Limited85%4450+

Government Owned Car Insurance companies

Name of CompanyICRNetwork (Garages)
The New India Assurance Car Insurance87.4%1100+
United India Insurance Company Limited120.79%700+
Oriental Car Insurance112.62%Major Garage across India (Count not available)
SBI Car Insurance87%5400+

How to choose the best car insurance?

There are couple of tips to select the best car insurance:

  1. Choose a top-rated insurer based on ICR
  2. Make a annual rate check comparing different companies rates.
  3. Pick a top rated Insurer based on survey. The survey that reveals data on claim, payment and other relevant information.
  4. The factors affecting premium calculation are based on the risks that insurance company will be underwriting.
  5. Tips to reduce the cost of your vehicle insurance
  6. Take advantage of discounts and beware of scams.
  7. Ad-ons that increases the premium but are very useful
  8. Key areas like value of car , lapse of policy while choosing a cover
  9. Speed of claim settlement based on ICR

Links for Best car insurance companies

  • https://www.hdfcergo.com/car-insurance
  • https://general.futuregenerali.in/car-insurance-online
  • https://www.reliancegeneral.co.in/Insurance/Motor-Insurance/Car-Insurance.aspx
  • https://www.bharti-axagi.co.in/car-insurance
  • https://uiic.co.in/product/motor

How to renew car insurance online?

Now a days renewing car insurance online is very easy. Same way like to buy grocery from Amazon.

Just to ensure that you renew your car insurance policy within the maturity period to avoid any penalty. To renew the policy, you need to follow few steps:

  1. Visit the car insurance website, you have had insurance
  2. Click on the renew option.
  3. You can choose different insurance company if you wish to, it is not compulsory or mandat that next year or future renewal must be from same company. You are free to choose a different insurance company at the time of renewal.
  4. Fill out the required/ mandate fields or details and the topmost information is – policy number along with vehicle registration number.
  5. You may need to fill couple of personal details but nothing related to bank or credit card to beware of any spams or fraud.
  6. Check the plans available and choose the best suitable plan based on your need.
  7. You can also customize the plans as given information above.
  8. You can choose/ purchase an add-on cover
  9. You can drop the riders from the policy that you had purchased previously.
  10. Choose to make the payment through card, online transfer say net banking, GPAY, PAYTM and many more.
  11. You need to pay the premium for the renewed policy.
  12. Please make sure that you review the policy documents carefully and make sure that all the details are in place. On a jovial note, it must not be like a dialogue in movie that who reads all insurance policy document.
  13. Please make sure that you noted the next renewal date and do not miss renewing the policy before the maturity date. Anyway, Insurance company will keep you informed and you will get a call or messages 1 month before renewal due.
  14. In case of any doubts, you can call the 24×7 customer care support for which toll-free numbers are available on any insurance websites.
  15. For some relevant information, you can drop an email to customer care.

Benefits on buying car insurance online?

There are multiple benefits of buying a car insurance online especially in this Pandemic- COVID situation to avoid direct contacts.

  • No Direct contact to avoid any health issues in this pandemic situation
  • Paperless work, paperless transaction
  • Time saving, easy and convenient
  • Cheaper buying online, no brokerage to pay
  • Quick and Instant policy
  • Easy endorsement related to policy
  • No tension of losing document because it is saved online, in email or portal
  • You can take tips from others by reading them the policy to ensure everything is covered as per need.
  • You will be notified at the time of revival/ renewal a month ago since all data is captured online
  • Easy to renew because all information is saved in insurance company portal and no need to fill again while renewing policy
  • You can compare multiple policies with different companies
  • You will be offered the best deals based on your requirement
  • Checking the credibility of the insurer is very easy
  • You don’t need expertise of an agent because all data is available in front of you.

How to get car insurance damage claim?

A car insurance claim is a process wherein an insured asks the insurance company to compensate for the damages due to accident, theft or any unintentional damages. It is everyone’s right to claim when he/she is involved in an accident.

There are 2 types of claims:

  1. Cashless claim where you don’t need to pay upfront for any repair at the garage of the insurance provider. The car insurance provider will settle all claims except you need to pay the processing fee which is very minimal under Rs.1000/- . Such benefit comes especially in comprehensive policy under which most of the losses covered.
  2. Reimbursement claim where an insurer will make payment for the repair and later claim the expenses based on insurance company terms and conditions. Another point is an Insurer does not need to make damage repair in network garage. Someone can choose any garage, get the repair done and ask for reimbursement.

Documents required:

The document are required based on what kind of claim you are going to make.

In case of Accident

  • A claim form duly filled and signed
  • Copy of Insurance policy
  • RC copy/ Valid Driving license copy
  • Tax receipt
  • Pollution copy
  • FIR copy in case of complain lodged

In case of Theft

  • A claim form duly filled and signed
  • Original Insurance policy document
  • Registration book
  • Tax receipt
  • RC copy/ Valid Driving license copy
  • FIR copy from local police station of complain lodged
  • A letter addressed to RTO

Third Party claim

  • A claim form duly filled and signed
  • Copy of Insurance policy
  • RC copy
  • Valid Driving license copy
  • FIR copy in case of complain lodged

Situation when your car insurance claim will be rejected:

  • Any damage due to drink and driving
  • Driving without a valid driving license
  • Driving with a learner’s license with no one accompany you with valid license
  • Own damage which is not considered as accident
  • No proof or False proofs provided related to accident
  • Late filing of the claim
  • No Medical Aid at the Hour of Injury
  • In Case Your Policy is Inactive

FAQ

Few out of the box questions:

Can I insure a car if it’s already insured?

Yes, you can. Legally you can have more than 1 car insurance policy for the same car. No one is going to stop you doing it and if you take out a second car insurance policy when you already have one, it won’t mean the first policy is void.

What is usually covered when I get car insurance?

Policy depends on different states mandate and based on different types of car insurance with several additional options (such as gap insurance) available. Most basic car insurance policies consist of:

  • Physical body injury
  • Personal injury protection
  • Property damage liability
  • Any Collision
  • Comprehensive and uninsured motorist.

What happens if you suspend your car insurance?

if a policy suspends, it does not mean cancellation. That way, you can probably prevent your hiatus from being called an insurance lapse, which would likely result in higher rates later. Confirm this with your insurer beforehand.

Do I need insurance on a car I just bought?

Yes, as per government mandate, you need to go with atleast 3rd party insurance. You will be charged with fine, or legal term in case of no insurance.

Can I insure a car if I don’t own it?

You can insure a car even you don’t own it but the benefit will go to the insurer.

Can someone else be the main driver on my car?

If you’re married, one of you can own the car and be the registered keeper. But if your spouse drives the car more often than you do, they’ll need to be listed as the “main driver”. 

Does car insurance start instantly?

Yes, it is. As soon as you buy car insurance even online, it starts with immediate effect.

How long can I keep my no claims bonus without a car?

Proof of no claims is valid only for 2 years. If you’re off the road for any reason or don’t have your own policy for more than two years, you’ll be back to zero NCD the next time you take out cover.

Do I need auto insurance before I buy a car?

Technically, you can buy a vehicle without insurance. However, whether you’re buying a new or used car, you need auto insurance to drive it home. Most car dealerships won’t allow you to leave with the car unless it’s insured first.

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Thanks,

Neeru

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The information contained in this post is for general information purposes only. The information is provided by Buy or Renew Car Insurance Online and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.

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