Buying Car Insurance Policy Online? 10 Things You Need To Know

By | December 10, 2018

Trouble is with a car insurance policy online buying technology. A car insurance policy can purchase and renew online. If you are planning to buy online car insurance, here are 10 things to know.

Car Insurance Policy

Buying an online car insurance policy is very simple and fast. If you are technical savvy, then you can not take more than an hour to buy a good car insurance policy online. Since you have no one to guide online while buying an insurance policy, it is important that you keep some important things in mind.

You must keep 10 things in mind while buying an insurance policy online

1. Policy comparison: A good thing about buying a car insurance policy is that you do not need to go to the agency with the agent to compare the different car insurance policies. Online, you have different websites that allow you to compare insurance policy at the comfort of your home. Make sure that you compare different policies online to choose the best for you.

2. Your needs: There are two types of car insurance policies. In one, only the loss of the third party is covered, the loss of the third party covered with the other includes self-harm. A comprehensive insurance policy protects your vehicle from third party liability and losses and even provides coverage for damage caused by natural disasters. Depending on your area, your parking area, how many times you drive your car and other factors, decide which type of insurance policy will give you better benefits. Do not take cheap policy due to price because it can not provide you the necessary coverage.

3. Value: When you choose to buy a car insurance policy, the price is an important factor, but do not value your main priority as you can ignore other important things like coverage. Buying an inexpensive policy can ensure your car against the loss, which can later cost you a heavy expense. What is the use of an insurance policy if it does not provide you with good coverage.

4. Determining appropriate insured declared value (IDV): The declared value of the insured (IDV) is the estimated market value of your car. When you are buying a car insurance policy, you have to set your IDV which decides the cost of your car insurance. While setting up a high IDV, your car insurance can be costly, by setting lower IDV you can insure. Make sure you do your analysis properly before setting up your IDV.

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5. Insurance calculator: Many websites allow you to calculate the cost of your car insurance policy. These calculators cannot be completely accurate but they still give you a good idea of how much you will pay for your insurance policy. When using a car insurance policy online, make sure to use these calculators whether you will be able to pay the policy or not. To use these calculators accurately, you need to know some conditions

  • Assured Announced Value (IDV): The estimated value of your car.
  • No Claim Bonus (NCB): Exemption to Claim
  • Deductible: Your share of the total claim amount
  • Add-on: Additional coverage with the policy
  • Third party: A car traveling in an insured car, someone other than the
  • insurer or the owner of the passengers.

6. Read the fine print: If you buy an online insurance policy, make sure to read the fine print. If you are not reading everything carefully, then maybe you do not know all the inclusions and exclusions which can dispel your insurance claim in the future. Make sure you read the conditions under which you can claim, under which circumstances you can not claim, and all the terms and conditions

7. No Claim Bonus: A claim bonus is basically a discount for not taking the claim. It is given at the time of renewal, provided you have not made a claim during the policy term. If your policy is active, you can think about it as a bonus given by your insurer to keep your vehicle safe. It can be noted that this bonus can be as much as 50 percent of the cost of your policy. When you are buying an online policy, know that you can lock this bonus with NCB Protector Ed, which keeps your NCB active even after claiming insurance twice.

8. Add-on: Nowadays, all types of add-ons are available. These add-ons cover what is covered under the policy, which means that you get extended coverage. But, since these add-ons are not free, if you buy many of them then it can make your policy really expensive. Therefore, make sure that you choose only add-ons that are relevant to you and will not only prepare you to spend more money.

9. Deductible: Insurance is a deductible insured sum, which will pay you in the insurance claim before making a payment in insurance coverage and the company will start paying you. These are of two types – Voluntary and Compulsory. The mandatory deductible is set according to the cc value of the car’s engine. The lucky deductible amount by name is the amount you want to pay during the settlement of claims. The higher your value of the volatile deductible, the insurance policy cost will be less and this means that you will get a lower claim amount. So, make sure you carefully set your voluntary deductible amount.

10. DETAILS AND DOCUMENTS: To ensure that the purchase of an online car insurance policy is smooth and error-free, make sure that you have all your documents such as car registration letter, bank papers, ID proof, etc. If you are renewing your policy online, make sure that the renewal process will not take much time to ensure that the previous policy paper is already taken.

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