Things You Must Know To Apply for Car Insurance Online

While we spend so much time researching about the car which we wish to purchase, most of us are very less aware of car insurance, in whole. This article is a comprehensive guide to apply for car insurance online – a step-by-step guide to buy car insurance online and the factors that affect the car insurance premium.

1. There are multiple car insurance providers with varied coverage plans. You can research and compare them online to find the one that suits your insurance requirements and budget.
2. Once you finalise your insurance company, go to their website and select car insurance.
3. You can choose between a new policy or policy renewal.
4. Input all the relevant details as prompted by the screen. This will generally include personal details and information about the car.
5. Select any policy add-ons that you wish to avail.
6. Verify the information provided by you and the premium cost displayed.
7. Make the payment online.
8. Some companies might inspect the vehicle in person before authorising the policy.
9. You will receive the soft copy of the insurance policy document once your payment is successful and the details are verified. You can request to receive a hard copy.

When you apply for car insurance online, the following factors affect the amount of premium you pay for your insurance:

1. Insured Declared Value: IDV is dependent on the market value of the car and refers to the maximum sum assured for which your car can be insured.
2. Type of Coverage: You can choose between a comprehensive plan and third-party insurance. Comprehensive coverage is costlier as it protects against theft, loss, damages along with third-party liabilities.
3. Make and model of the car: Luxury cars and diesel cars have a higher premium cost.
4. Age of the car: As the market value of the car goes down, so does the IDV. This brings down the premium price as well.
5. No Claim Bonus: NCB is the reward by insurers to policyholders for not filing a single claim in the policy term. You can avail an NCB while renewing, which brings down the premium cost.
6. Policy add-ons: Added coverage like engine cover, zero depreciation cover , etc. can be availed on payment of additional premium.
7. Other discounts: Insurance companies offer multiple discounts on online purchase and payment.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.