Car insurance has never been more important than now. It serves as a safety net in the event of an accident. Further, car insurance also covers third-party liability. But do all the four-wheeler insurance policies cover us as well as third parties?
The answer is no! The extent of coverage varies among different insurance policies. There are various methods to buy car insurance. Let’s discuss the typology and why buying car insurance online is beneficial for you.
What is Covered Under Car Insurance?
There are two types of car insurance coverage: comprehensive car insurance coverage and third-party car insurance coverage. Let us see the coverage provided by them.
Comprehensive Car Insurance Cover
A comprehensive car insurance policy provides the following benefits:
- Complete third-party coverage: It includes everything that third-party car insurance covers.
- Damages to your own car: The cost of getting your car repaired after the accident is covered under this car insurance cover.
- Personal accident cover: The cost of treatment for the injuries suffered by the owner-driver is also covered here.
- Theft: If your car gets stolen, then this car insurance cover compensates you for the same. The amount of reimbursement shall be the declared value of the car.
- Fire: If your car catches fire, this cover will provide coverage for the same. The amount of coverage will be equal to the declared value of the car.
- Natural calamities: The amount of damage caused by natural calamities is huge. However, you don’t need to worry about this with comprehensive car insurance coverage. You can claim damages in case your car is subject to natural calamities.
- Add-ons: They further enhance your cover. Add-ons include zero depreciation cover, consumables cover, tyre damage, etc.
Third-Party Car Insurance Cover
A third-party car insurance policy normally provides for the following:
- Third-party damage: Any damage caused to the property of a third party due to the accident is covered under this insurance cover.
- Treatment Costs: If a third party is injured, the insurance company will cover the costs of treatment.
- Death Compensation: In the event of the death of a third party in the accident, your car insurance will cover the same by compensating the affected family.
- Legal Liabilities: A legal liability may arise due to any event that involves the insured car. Third-party car insurance provides coverage against such legal liabilities.
To sum up, it can be said that the third-party car insurance policy covers all the damages caused to a third party. However, it does not cover the costs of your injuries. To get the same, you need a comprehensive four-wheeler insurancepolicy.
What is the Best Way to Buy Car Insurance?
You can buy car insurance coverage through any of the following modes:
- Online: Here, you just need to visit the website of the insurance provider. You can browse the plan and select the one that suits your needs.
- Offline: You can visit any insurance provider’s office directly. They will assist you with buying car insurance.
- Through an agent: You can also buy car insurance through an agent. The agent fulfils all the formalities of buying car insurance. Further, they guide you through the selection of the best plan that suits your needs.
The following are the major benefits of buying four-wheeler insurance online:
- Comparison: Before buying car insurance, you must compare various policies and insurers. But this becomes difficult if you go for offline buying. The options get limited here. Buying a car insurance policy online helps you compare various policies. You can also compare different insurance providers to select the one that provides the best plan.
- Minimal paperwork: Purchasing car insurance online saves you time and money. In the case of offline purchases, you need to complete various formalities. But this is not the case with online purchases. You just need to provide the required details online and buy the insurance.
- Convenient: You don’t need to physically visit the insurance company or the agent’s office. You can simply buy the insurance from the application or the website. Also, you can buy your insurance policy anytime, anywhere.
- The credibility of the insurer: You can easily check the credibility of the insurer during online purchases. You can check whether the insurer settles the claim quickly. Further, you can also check the claim settlement ratio and opt for the one offering the highest. A low ratio can lead to the rejection of your claim. It defeats the whole purpose for which you obtained the insurance.
- Economical: If you buy car insurance directly instead of through an agent, then you can save on the commission costs. Insurance companies pay commissions to their agents. This commission is borne by the customers who purchase the insurance policy. It is added to the premium. But no commission is charged by the insurance companies if the insurance policy is purchased online.
In a Nutshell
Purchasing car insurance online is far more advantageous than purchasing it offline. Most people prefer buying car insurance online. This provides them with all the benefits shown above. You just need a smartphone and an Internet connection to insure your car. How are you buying your four-wheeler insurance? For more information, visit Piramal Finance now! Read more related blogs on the website to explore their financial products and services, especially those on insurance, personal loans, and credit cards.