Categorized | Car Insurance

Understanding How to Buy Car Insurance Plan

Buying insurance for your car is not a very technical stuff. Just go through the article and you would never face any problem in judging car insurance plans. For starters, your car insurance policy is a financial agreement between you and your insurance company in which the latter agrees to pay financial losses suffered by you in case of theft or Accident of your car.

Overview of car insurance

As a car accident can cause loss to third parties as well, in order to pay for the liability towards third parties Motor Vehicles Act 1988 mandates every car owner to get it insured. A car insurance policy can be broadly categorized into two types.

      Third party insurance only policy

           Comprehensive car insurance policy

The Act mandates you to have at least Third party insurance only policy. However, you should buy comprehensive car insurance Policy as it covers your financial losses too. A car is generally a very pricey asset and cause huge financial loss in case of theft or serious accident. Thus, don’t just think of avoiding the fine by settling for a Third party insurance only policy, think about the bills you end up paying out of pocket to the repair garage in case of accidents or even worse , the loss if your car gets stolen.

How to buy plan?

Now we come to the important question i.e. how to buy a car insurance plan.

There are two modes of buying a car insurance plan, offline mode and online plan. You can use either of the modes. Offline plans are more traditional and involve approaching a car insurance agent through which you can buy such plans. Such agents can be professional agencies or employees of a particular general insurance company. These agents can also provide personal guidance and suggestions regarding your plan purchase. Many people feel comfortable buying through an agent as they can approach him at times of claims and held him accountable for any grievance. In case of offline purchases people have a recognized person to approach. This mode is favorable for people who are not tech savvy and lack commercial knowledge.

Among the more educated and urbane masses the online mode is gaining popularity. In this fast paced modern life everybody is hard pressed for time and visiting an agent or giving appointment to an agent for a meeting is a thing not many are willing to do. The internet is the source of unlimited knowledge and many people like to learn and educate themselves about their insurance needs on their screens. It saves time and at their own comfort they can review, compare, fill forms and make payments for their car insurance policy. Online transactions are very secure and the growing popularity of e-commerce websites is evidence to it.

Based on your comfort level with web technology and evaluation of the pros and cons of both you can decide your mode.