In India, insurance is clearly a developing business with a long way to go, particularly in terms of public understanding of its importance and utility. This is especially true in the auto insurance industry, where many drivers regard it as only a formality to avoid a costly punishment. Motor insurance, on the other hand, provides a lot more. Understandably, no one wants the excitement of purchasing a new car to be tempered by the possibility of an accident or damage in the future. Insurance, on the other hand, is what helps avert an unforeseeable calamity, thus it deserves its due amount of research and planning prior to purchase.
The earliest phases of lockdown had halted overall mobility and even had an influence on automotive sales. Now that the limitations are easing and the roads are bustling with new automobiles every day, it’s the ideal moment to reconsider how you purchase car insurance. Furthermore, Covid-19 has accelerated digitalisation across businesses like never before, including the insurance industry. Traditional insurance buying methods have given place to more efficient digital transactions.
To get the most out of their insurance coverage, car owners must consider a number of aspects, including legislative regulations, add-on options, and the advantages of purchasing online. Here’s a quick rundown of everything you need to know about buying four-wheeler insurance.
Understanding the Difference Between Third-Party and Own Damage Coverage
Accidents do happen, and we have little to no influence over them, as much as we would prefer to avoid them. They can be quite harmful to the people involved. According to a recent World Bank research, India has a concerning rate of 4.5 lakh traffic accidents each year. Despite accounting for only 1% of all vehicles on the road, it ranks first in terms of fatalities. In such a situation, a lack of insurance knowledge can be harmful to not just one, but both parties concerned.In 2019, the legislation enforced third-party liability coverage for all vehicles being operated in both personal and commercial capacity, recognizing the clear necessity for insurance. Third-party insurance pays for damage to a third party caused by your car in the event of an accident.
However, in the event of an accident, this does not provide any risk protection for you or your vehicle. As a result, it is recommended that all car owners have a comprehensive insurance coverage that also covers their own damages. This is especially true if your car is brand new and gets a lot of use. You should also consider the fact that new automobile owners are required by law to purchase a one-year comprehensive three-year third-party insurance policy at the time of purchase. The owner is only required to acquire a standalone own damage policy for the second and third years.
Accidents aren’t the only danger that your car must be safeguarded from. A comprehensive coverage will cover your car not only in the event of an accident, but also in the event of theft, burglary, flood, or fire.
Comparison, Convenience, and Other Benefits of Online Shopping
The world is witnessing a huge digital change, which has been reflected across all industries for quite some time now, thanks to Covid-19. The usual insurance purchasing process entails scheduling face-to-face encounters with brokers and selecting from a small pool of possibilities.
As a result of the Covid scenario, social isolation has become the new norm. Insurance purchase has been made easier by several notches with the debut of the internet alternative, as we become acclimated to a contactless world. You can compare a variety of policies offered by every insurer and choose the one that best meets your needs. When making an online purchase, the process is significantly less time consuming and lot faster. Not only that, but as compared to traditional insurance, you can save a lot of money with online insurance.
There are a lot of myths about online auto insurance. People believe, for example, that online claim rejection is more likely. This, however, is not the case. It is significantly easier to settle claims online, and it relieves you of the burden. Even whether you’re renewing your policy or switching insurance companies, the internet method is far more convenient and secure at these times.
Make the Most of the No Deposit Bonus (NCB)
Your policy comes with a built-in no-claim incentive. It compensates you for safe driving and not filing a claim during the insurance year by giving you a reduction on your renewal premium. According to the law, a car owner can receive a 20% discount for the first year of no claims, a 25% discount for the second year, a 35% discount for the third year, and a 45 percent discount for the fourth year. If you drive safely, NCB can help you save a lot of money on your insurance.
Here are a few pointers to help you make the most of your NCB:
- Remember to renew your insurance policy on time. If you don’t renew your policy within 90 days of its expiration date, you risk losing your bonus.
- Pay for minor damages out of your own pocket. If you have a large amount of NCB, claiming even a small amount could result in you losing it all.
- Choose no-claims bonus coverage. This policy requires an additional premium and protects your bonus even if you make a minor claim.