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A Quick Guide to Buying Motor Insurance Online

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Published on March 5, 2021. EST READ TIME: 3 MIN



Having motor insurance is compulsory in India – everyone who owns a vehicle is aware of that. Legally, you are not allowed to drive a car or ride a bike if it is not insured. So, every vehicle you see on the road is insured. However, most people tend to look for the least expensive insurance plan, and that is usually the third-party cover. What they don’t realize is that if unfortunately, they have an accident and damage their vehicle in any way, they will have to shell out money from their own pocket for the repairs. So, this article explores how you can make a wise choice while purchasing a policy online, from the comfort of your home.

1. What are the Different Types of Vehicle Insurance Policies?

HDFC ERGO offers several types of insurance policies for motor insurance:

1. Third-party - This covers you for damages done to another’s vehicle, if you caused the accident and need to pay them to repair their vehicle. It is legally mandatory to have this basic insurance.
2. Single Year Comprehensive – This covers you for damages done to your own vehicle in addition to third-party cover. You can also choose add-ons and customize your insurance policy.
3. Standalone own damage cover – If you already have third-party insurance, you can simply purchase this policy to cover for damages done to your own car.
4. Cover for brand new cars – If you’ve just purchased a new vehicle, this policy covers you for damages to your own car for 1 year, and offers third-party cover for 3 years.

All motor insurance policies from HDFC ERGO, other than the third-party insurance plan, provides protection against theft and natural calamities, offers personal accident cover, and gives a choice of add-ons.

2. Tips to Make the Perfect Selection

It is very easy to purchase a motor insurance policy online nowadays. Ideally, you should check what different companies are offering and compare the benefits and the premiums before buying.

1. Ask friends, family and colleagues about their experience with various motor vehicle insurance companies.
2. Find out the claim settlement ratio of different insurers – choose a company with a high settlement ratio.
3. Check if personal accident cover is also offered along with the comprehensive policy. This will help protect you against financial difficulties due to extended hospitalization, disability, or even death from the accident.
4. Look at the deductibles being charged by the company. A certain minimum cost has to be borne by the owner, and this amount may be higher for older or higher end cars, or if you are in any circumstances, deemed high-risk by the insurer. There is also a voluntary deductible amount involved, which you can increase to lower the premium.
5. Calculate the Insured Declared Value (IDV) of your car. This is the amount you get when you deduct depreciation from the selling price as listed in the invoice. If your car is stolen or completely damaged, this is the amount that you can claim.
6. Check for network garages which are close to you, so that you can get quick repairs. More garages mean that your repairs will be carried out quicker.
7. Enquire if your insurer is offering cashless repairs

3. How is the Premium Calculated?

The comprehensive car insurance price depends on a variety of factors like:

1. The make and model of the car; generally, brand new cars attract higher premiums
2. The cubic capacity – higher capacity may mean higher premiums
3. Your no claims bonus – the higher your NCB, the lower will be your premium
4. Your voluntary deductible
5. Add-ons you select
6. The insured declared value of your car. Usually, higher premiums are charged on cars with higher IDV.

4. Step by Step Process to Purchase your motor insurance

1. On the HDFC ERGO Car Insurance page, you need to first enter your vehicle registration number.
2. Select the type of insurance you want; you may be asked for details like model, registration year etc. on this page.
3. Enter details of your No Claims Bonus and previous policy.
4. Fill in your contact details.
5. You will get a quote on the next page. Simply click on purchase and make the payment when you’re ready to buy.

5. Documents Required

To purchase a motor insurance policy, you need to have these documents handy for reference purposes:

1. Vehicle RC or Registration Certificate (for chassis number, cubic capacity, year of registration, model etc.)
2. Previous year’s Insurance policy (to check your NCB and previous IDV)

Conclusion

A comprehensive motor insurance policy can offer ample protection in the unfortunate event of an accident. Whether it’s only vehicle damage, or your hospitalization cost, it can provide the funds you need to settle your expenses. You can focus on your recovery and getting your vehicle back in shape and on the road, without worrying about the cost involved.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

S. Gopalakrishnan | Motor Insurance Expert | 40+ years of experience in insurance industry

A veteran in insurance industry. S. Gopalakrishnan is a name to reckon with in the field of reinsurance, he has headed the Reinsurance department and has rich experience in other fields of motor insurance. He loves to share his opinion on latest topics in the insurance industry and how he can help people in safeguarding their assets using insurance products.

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