Important Things Before Buying Car Insurance in 2024

 Most of the people have a clear vision of the types of insurance policies like health insurance, travel insurance, home insurance, etc. However, when it comes to simple things, like buying car insurance, most people prefer to forget or not think about it, unless there’s an immediate consequence of not having it.

Car insurance is a type of insurance for your 4 wheeler vehicle, the car insurance’s main purpose is to provide the policy holder the financial support for the car repair, any body damage in case of any road accident, or even theft.

What is The Need Of Buying Car Insurance in India?

Everyone could roam around the country without buying car insurance in India, but according to the Indian Motor Vehicles Act, of 1988, it is compulsory for all the car owners to have at least a Third Party Car Insurance Policy in India.

This law is necessary in order to give financial protection to your car in case of any unfortunate event like an accident.

A car insurance will finance all the repair costs, and legal obligations if any. But it is true that a majority of the time these guidelines are designed to ensure the security of people like us.

Reasons Why Buying Car Insurance Is Important

Let’s consider an example, imagine what would happen if a Third-Party Car Insurance was not required under the law. In this situation, the majority of people would not even have it and, in the event there was an accident both parties would be drowning in nonsense arguments, and then huge amounts of money!

Reasons Why Buying Car Insurance Is Important

So, even though the main goal of insurance policy is to safeguard the person who is affected by an accident or mishap There is many reasons why the insurance of a car is now mandatory in India.

Numerous Road Accidents 

Road accidents are quite frequent throughout India which is one of the primary motives behind why the Motor Vehicle Act has made car insurance mandatory is due to this.

In 2017 there more than 1200 injuries that were reported daily because of road accidents! Car insurance will ensure that no one is forced to shoulder the financial burden in the event of a crash.

Secures the Third-Party

If you happen to bump into someone’s car or a car crashes into your vehicle, having an insurance for cars belonging to third parties in place will guarantee that the third party affected is compensated any car damage or personal damage.

Helps with Legal Procedures

In the event of an accident, it is not just the accident that occurs, it is more than just the damage, it’s the legal procedure that consumes the time and energy of those involved. But, if you have an insurance for your vehicle that is valid legal procedures are also handled.

What Are The Reasons Why Buying Car Insurance Online Makes Sense?

Have you ever paid the electricity bill through your central location or, when was the last time that you visited your Kirana shop to complete your mobile recharge? It’s been awhile, hasn’t it?

Due to the internet’s problem, the majority of people like us make use of the internet to complete the majority of our daily tasks get completed. It includes like Paying your bills, recharging and even placing orders for groceries!

What Are The Reasons Why Buying Car Insurance Online Makes Sense?

Technology has developed to the point where we no longer need to go to insurance companies or call our dealers to purchase insurance for our cars anymore.

Now you can buy your insurance policy online. All you need are the car’s basic information and a debit or credit card to pay for your insurance premium. Once you’ve done that Your car insurance policy will be sent to you within a matter of minutes.

  • The convenience of purchasing car insurance online can help you save a lot of time. There is no need to spend your time waiting around or calling anyone to get the job completed. You can complete the task from your couch with your laptop in hand and just five minutes left.
  • The purchase of a car insurance online allows you to modify your insurance policy for your car. Additionally, it is possible to do this with Digit’s Car Insurance; you can also modify the car’s IDV by yourself.
  • The purchase of car insurance is much more sensible since the process of purchasing one is transparent because you’re purchasing it yourself instead of relying upon a third-party person to take care of the job for you.
  • The best part of purchasing a car insurance for your car online is that it does not require any kind of paper work.

Factors That Affect Car Insurance Premium

So what is a car insurance premium? a car insurance premium is the amount that the policy holder pays to the insurance company annually or monthly in order to keep his policy active.

Factors Affecting Car Insurance Premiums

The premium for car insurance depends on various factors like:

  • Insured Declared Value or IDV
  • Manufacturing and Model of Car
  • Safety Features
  • Claims Frequency
  • Owners Driving Record

Insured Declared Value or IDV

Insured Declared Value also known as IDV is referred to as the current market value of your car that is determined by your insurance provider. The Insured Declared Value or IDV represents the value of your car after subtracting the depreciation value.

Read Also: 7 Reasons To Buy Health Insurance In 2024

The Insured Declared Value of your car keeps on decreasing with time, more the time, more is the depreciating value of your car.

Manufacturing and Model of Car

If you have a high priced car like a sports car, like BMW, Mercedes, etc then the price of the premium will also be higher, if compared to a lower or budget segment of cars. Also, the premium amount is higher on the cars that run on CNG.

Safety Features

If your car comes with modern safety features like alarm, anti theft features, or a GPS tracker then all these things will help in reducing the car insurance premium amount hence giving you more discount as you are reducing the load of your car on the car insurance company.

Claim Frequency

Claims frequency depict the amount of time you made a claim for your car insurance, if someone who haven’t made any claim until the whole year that policy holder is awarded with a discount on his premium (bonus) referred to as the NO CLAIM BONUS or NCB.

Owners Driving Record

If you are someone who drives carefully on the road without breaking any laws or rules and has a good track record then this will surely help you gain more discounted price and better on your car insurance premium