Car insurance is a mandatory requirement by the law. All cars registered in the country are compulsorily required to have an insurance policy. While it may seem like another mundane task, it should not be ignored or turn a blind eye. There are often chances that those who do not pay heed to buy a suitable car insurance policy will have a not-so-favorable plan. Moreover, there will be an outflow of resources in the form of a premium with no real benefits when required.
In the current age where social distancing is a norm, almost everything can be purchased online. Yes, even your car insurance policy! Let us look at the different stages of buying a car insurance policy.
#1 Research
Researching before purchasing a particular item of your need is handy. Similarly, when buying a car insurance policy, you need to have some basic understanding of the subject. As you browse through various policies and their documents, you start to notice the jargon used. Familiarise yourself with this jargon. Easy information is available over the web. It will help you in shortlisting and selecting suitable policies. Insured declared value, exclusions, inclusions, deductibles, no-claim bonus, etc. are some common terms that can help you make a smarter choice, i.e., whether comprehensive or third party car insurance is a suitable option for your requirements
#2 Comparison
Akin to an ordinary purchase, the next step is comparing the available policies. Compare the various features and benefits a plan has to offer. Further, keep a check on the premiums too. It will help you establish a fair judgment of the premiums charged for similar features by the competitors. Comparison is further simplified using a car insurance calculator. This nifty tool will help you evaluate the similarities and differences between the various plans selected. It can be useful to conclude the myriad choices.
#3 Application and Inspection
Once you finalize the policy, the next step is to apply for one. While purchasing a new policy or renewing a policy is quicker. However, if there is a gap in your car insurance renewal, you may require re-applying for a policy. Additionally, there is an inspection requirement at the time of renewal or change in your insurance company. It helps the insurer assess the risk and determine a premium to be charged for your car.
#4 Purchase
After the approval of your policy, you can proceed to purchase it. It can be purchased via different modes, i.e., online or offline. While offline is the conventional way, buying a policy online has benefits like faster delivery and reduced redressal times. Carefully check the terms of your policy so that nothing comes off as a bad surprise at the claim. Any mistakes or errors in your policy documents should be immediately rectified on its purchase with the insurer.
#5 Claim
A claim can be made only when you have an active car insurance policy. Thus, always ensure you never miss out on the timely renewal of your policy. Before you make a claim, familiarise yourself with the inclusions and specific exclusions that your policy has to offer.
These are the five stages of buying a car insurance policy. Remember to understand, evaluate each step and make a suitable policy purchase.
