Pick the Right Insurance for Your Dream Car

Pick the Right Insurance for Your Dream Car

Not many people realise that choosing the right car insurance is as important as choosing the right car

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Priyadarshini Maji
  • Jul 23, 2016,
  • Updated May 22, 2017 5:30 PM IST

Having a car today is no longer a luxury but a necessity. But not many people realise that choosing the right car insurance is as important as choosing the right car. Any damage or accident may have severe repercussions for your finances if the vehicle is not adequately insured.

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As car insurance covers are mostly standard across channels and insurers, there is not much to choose when it comes to basic vanilla products. There are mainly two types of plans - Third Party Insurance Plans and Comprehensive Insurance Plans.

Each channel of distribution has its own pros and cons, but digital-savvy customers seem to prefer buying insurance online due to lower premium and operational benefits. "Best premium rates are available online, and one can easily see a premium difference of 20-25 per cent between the price quoted by agents and the online quote, though negotiation can bring the agent's quote close to the online one. Buying insurance from an agent has a benefit in the sense that the agent can help you explain jargon, but if one is comfortable with the basic language used in the insurance sector, online purchase is always recommended," says Dua. Online purchase makes things easy in terms of policy management, quick and easy renewal, timely reminders, etc. Online policies are not only cheaper, they also help one save time, as there is no need to visit the insurance company or rely on the agent for all policy-related issues.

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Customers also prefer purchasing insurance policies from car dealers as they have tie-ups with various insurance companies and the dealer ensures adequate coverage. They also provide special offers exclusively to their customers by negotiating with the insurers.

Having a car today is no longer a luxury but a necessity. But not many people realise that choosing the right car insurance is as important as choosing the right car. Any damage or accident may have severe repercussions for your finances if the vehicle is not adequately insured.

Advertisement

As car insurance covers are mostly standard across channels and insurers, there is not much to choose when it comes to basic vanilla products. There are mainly two types of plans - Third Party Insurance Plans and Comprehensive Insurance Plans.

Each channel of distribution has its own pros and cons, but digital-savvy customers seem to prefer buying insurance online due to lower premium and operational benefits. "Best premium rates are available online, and one can easily see a premium difference of 20-25 per cent between the price quoted by agents and the online quote, though negotiation can bring the agent's quote close to the online one. Buying insurance from an agent has a benefit in the sense that the agent can help you explain jargon, but if one is comfortable with the basic language used in the insurance sector, online purchase is always recommended," says Dua. Online purchase makes things easy in terms of policy management, quick and easy renewal, timely reminders, etc. Online policies are not only cheaper, they also help one save time, as there is no need to visit the insurance company or rely on the agent for all policy-related issues.

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Customers also prefer purchasing insurance policies from car dealers as they have tie-ups with various insurance companies and the dealer ensures adequate coverage. They also provide special offers exclusively to their customers by negotiating with the insurers.

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