Last Updated on 17/10/2020 by Deepak Singla
Are you someone who blindly follows the car dealer and buys the insurance policy provided by them when you buy a new car? Well, I have got news for you.
Buying an insurance policy online is a far better option than buying it from a dealer or agent. You might think it’s a less trustworthy process, purchasing a policy online. But buying car insurance policies online has a lot of advantages. You can compare policies with a lot of competitors. You can cinch better discounts and other perks online rather than offline.
Still not convinced? Read along.
Where should you buy the policy from – agent, aggregator or online?
Buying car insurance online is the best way to save money and to get the best deal out of the money you pay. When you opt for an agent, you will have to go through a lot of hassle of paperwork. An agent will only recommend the insurance company that he is associated with. He will not provide you with the competitor’s quote. This way, you might be missing out on the ideal policy best suited for your needs. You will have to pay the agent fees over the premium amount as well.
While online policy aggregators have the advantage wherein you can compare multiple policies in one place, they would still be levying charges from the buyer for making profits.
The most effective method for buying a policy is directly through the insurance company’s website. This eliminated all the middlemen, and you will only be paying for the premium—no extra charges. The online websites will be authentic, and their mode of payment will be safe. The websites usually have all the information you would need to know about the policy. You can even feed in all the information and see what the quote will be before buying the policy. Most websites have chatbots that can help you with any doubts, or you can call up their helpline number. When you buy through the websites, they will give you additional discounts and other perks.
How to choose the right insurance company?
Rather than buy the policy that your car dealer provides you with, research online to find the right policy for your car. Go through each insurance company’s websites and read through their terms and conditions. If you hit a snag, call up their helpline number. Here are some pointers on shortlisting the right insurance company
- Premium vs coverage scope – Compare the premium amount to the extent of coverage offered by each company. Choose the policy that best suits your requirement and the sort of driver you are.
- Claim settlement ratio – Claim settlement ratio is the ratio of the number of claims accepted to the total number of claims submitted. The higher the ratio, the higher will be your probability of getting the claim accepted. A high claim settlement ratio is a good scale to measure your company with.
- Online premium calculator – Rather than blindly buying a policy, opt for a company that will give you a prior idea of what the premium amount will be through an online car insurance premium calculator. This will help you budget your finances and give you an overall idea of how much you will have to invest in the car insurance policy every year.
- NCB Bonus – No Claim Bonus is the bonus you get for every claim-free year. Make sure your company provides an attractive NCB bonus. Your company should also have a hassle-free smooth NCB transfer process if at all you decide to migrate to any other insurance company.
- Availability of a variety of add-ons – Add-ons will help you create a more wholesome package that will cater to your needs. A company that offers a versatile of add-ons would be the ideal choice.
- Network of cashless garages – If your insurance company has a cashless garage facility, it will be an easier process for you to get your sum insured. The company will directly pay on your behalf at these garages instead of you having to file the claim and get it approved. A large number of garages will increase the probability of you finding one near your place. It is also a measure of the credibility of the company.
Deductibles – Voluntary deductibles are when insurance companies ask you to bear a portion of the expenses. This will reduce the premium amount; however you will have to pay from your own wallet a portion of the sum insured. Opt for a company that does not mandate deductibles. Because sometimes even the small portion that you might have to bear can become an overwhelmingly become overwhelmingly huge amount.