Car insurance is not a novel term to car owners, especially in India, where the Motor Vehicles Act has made it mandatory to buy one before plying the cars on road. However, it should not be bought out of compulsion only. One must know the benefits that come along with a car insurance policy. But buying the right policy is not everyone’s cup of tea. Even if someone buys, most of the time, they end up compromising on the services.
Here’s why you need to be vigilant while buying a plan. The financial terms and jargons may appear difficult and you may get confused easily. We often notice most people are attracted to plans that sound beneficial or are being offered at an affordable price. However, that is not the case with everyone. There are people who believe in doing their own research and find buying car insurance online more convenient. The reasons are quite substantial.
But what if your self-research is insufficient and your online purchase turned out to be a wrong decision? Are you sure enough that the plan you recently bought online will be sufficient for your needs? What if the insurer fails to stick to their promises that they had made at the time of buying? Whatever the reason, you’ll be the one who suffers.
While investing into something means you allocate a portion of your hard-earned money to save your future, you always want to deal with the adequate services. But you don’t know how to buy the right policy, right? Well, here comes car insurance calculator in the picture that solves all your queries. Before simply jump into the matter, let’s take a brief on how insurance works in India.
Ways to Buy a Policy
In India, two ways are followed to purchase insurance. Firstly, the insurance agent visits your residence; explaining the policies that the insurer offers. He also suggests some of the policy options that meet your needs and persuades you through the whole process. The other way is purchasing a plan online. When it comes to buying a plan online, you simply visit the website of the insurer, research through the available policies and select one that meets your requirements. Of late, it is the most convenient way to buy insurance.
You save both the time and money as no insurance agent is involved while you buy car insurance online. Apart from this, the most alluring part of buying or renewing car insurance online is you can get a plan in a few clicks away in the comfort of your bed. However, the question still exists, how do you choose the right insurance plan?
Car Insurance Calculator and Its Benefits
Thanks to the ambiguity that still exists, we owe it to finance experts that we have insurance calculator. Vehicle insurance calculator is an online tool that guides you through buying the right plan. In the traditional way, you have to approach an agent to buy a plan or visit insurers’ offices. This process is time intensive and one ends up wasting money as well. With car insurance calculator you can now compare the plans that you buy online. You just need to log on to a comparison websites-fill the necessary details such as car model, registration date etc. The comparison will be done based on the benefits, features, premium rate or claim settlement process. After calculating all, the insurance calculator also suggests plans that suit your requirement.
Also, car insurance calculator helps you understand several other insurance-related parameters that may affect the price of your car policy. If you are paying more than the average price of a car insurance policy, which means your policy offers some additional benefits.
Tips to First Time Car Insurance Buyers
Now that you own the keys to your prized possession, your car, insuring the vehicle with car insurance will be the next step. We often notice people take decisions in a rush and end up making plenty of blunders. We suggest, take your time! Getting the right car insurance policy that complements your needs can be carefully thought out before taking any decision. Here are some simple tips compiled to help you find the right direction with car insurance.
The first thing that you should decide is what type of insurance coverage you actually require. For instance, if you buy an older car with a low resale value, opt for collision insurance. The reason is that if your car doesn’t have a certain value and in case of an accident, the vehicle will not be replaced. If you buy a brand new or luxury car, always go for the coverage that provides full protection i.e combination of comprehensive and collision one.
The next step is to hunt for the most affordable auto insurance that meets your needs. However, there are various ways to find insurance policies, with the internet booming, it has become easier to get a plan in the comfort of your home. Buying car insurance online is the most convenient and fastest way to avail coverage for your vehicle. Also, you can get auto insurance quotes from different insurers. Getting around five or six insurance quotes is enough to give you an idea about the available plans in the market. Use car insurance calculator online by visiting the aggregator websites and buy an informed plan.
Once you find the car insurance quotes, you will obviously want to check each one in detail. Some quotes may appear better than some others. You should be very careful here and weigh even the simple things about a plan like what is covered, the features and benefits, claim process, renewal procedure etc. Remember, the lowest price doesn’t always offer the best deal.
Sometimes, you have to pay slightly a higher price to get better benefits and we believe that is not a bad idea. However, try to bargain over the price. Due to fierce competition in the financial market, the insurer wouldn’t want to lose the customers and hence there is a possibility you can avail a plan at a cheaper price. Haggle over insurance rate and get the best deal!
Car Insurance Claim: Make it as Smooth as Possible
Buying car is a cakewalk these days, thanks to the enormous number of and easily accessible car loans in the Indian market. However, safeguarding your vehicle is the next foremost thing that can be only assured via car insurance. Car and accidents go hand-in hand, hence a car insurance plan that covers the damages to the car during an accident, bodily injury to the passengers etc is your only saviour. However, this requires a lengthy process to be performed smoothly to claim the benefits. Here’s how you can make your auto insurance claim process hassle-free:
Inform the Insurer About the Incident Immediately
It is mandatory to inform the insurer about the mishap within 48 hours. It is better if you can contact them right away to avoid missing out on any second details of the accident. Even if you miss out on a small one it could hamper you from availing the exact claimed amount. So, it is advisable to inform the insurer immediately and explain every single thing about the incident.
Record the Accident Damage
Just informing the insurer is not enough, you must also keep a record in written about where and how the incident happened, how many damages were there or injuries if any. You must attach a proof of the damages that happen to the car, proof of wounds, emergency medical hospitalization bill, police FIR etc. Gather aforementioned documents in advance and make a claim ASAP. This will help you get the claimed amount at prompt.
What Will be the Settlement Amount
After making whole details handy and in writing, next step is to analyse the loss and expenses that you incurred during repairs or the injuries owing to the accident. Once you’ve decided with a nominal claim, steel yourself to claim. Just ensure that you’ve mentioned all details correctly without missing out on a single one.
Here Comes Demand Letter in the Picture
Drafting demand letter is what your next step asks for! You’re needed to draft a demand letter that states your claim settlement request and has been forwarded to the concerned car insurance company. The demand letter will comprise of accident-related details such as total damage, injuries to the passengers, medical treatment availed by the injured persons, hospital bills, mention of permanent disability, accidental demise or no-flow of regular income due to irregularity etc. You should also mention car repair cost, healthcare scenario etc. All scenarios should be presented with valid proofs. Remember, always mention the amount that you actually need. You can’t bear the risk of getting your claim rejected on the grounds of an incorrect claim.
Analyse the First Settlement Offer and Push for the Required One
After you’ve submitted the claim request, the claim officer will offer you the initial settlement offer. If your requirement matches with the same, go for it. On the other hand, if it is less than what you’re expecting and the reason given by the insurer doesn’t satisfy you, you can push for a settlement based on your existing proofs. There is no hard and fast rule that you have to accept whatever is being offered.
Get the Claim Settlement in Writing
If the negotiation over claim settlement goes well, the next step is to ask the insurer to sign a written agreement saying that the reasonable claimed amount will be covered by the insurer and paid under the policy terms. Also, confirm the reimbursement time period with the insurer and the required documents. It is beneficial for you if everything related to claim settlement is documented to avoid any miscommunication.
Go Legal is the Last Option
If the negotiation fails and you are not getting the expected claimed amount from the insurer, the last option left for you is to approach a car insurance lawyer. He is the only person who helps you analyse the entire incident as well as getting the desired amount that goes well with the terms and conditions of your car insurance.
We remember when news channels were persistently beaming pictures of a Lamborghini Gallardo, which costs around 2.5 crore, crashed into flames on Delhi streets. Such incidents are common on the streets, but the price tag of that car was surely not. So, it is advisable to safeguard your prized possession in such eventualities beforehand. The best way to do it is by selecting the right auto insurance from the lot. Car insurance calculator not only helps you get the right policy but also allows you to bargain over the plans once compared one with the other. Also, buy add-on covers such as zero depreciation, to complement your third-party liability or own damage cover.
It is often being noticed that car owners purchase car insurance just for namesake without analysing its importance. The low premium cost is always the sole determining factor, while it is not what the insurance experts suggest. This way one can be deprived of having an adequate car insurance policy that meets all the requirements. It could be wise to go online and buy a plan. There are thousands of insurers that offer insurance products designed as per the needs of the customers. The only challenging task is to identify the right policy, haggle over the price and buy. Buying car insurance online enables you to know the various facets of the plan before finalising one!
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