Insurance

Why is a Car Insurance mandatory in India?

Unfortunately, when it comes to supposedly mundane things like a car insurance, people tend to ignore or forget about it unless there’s a repercussion of not having one.

However, more often than not- these guidelines are made for the overall safety of people like you and me.

Let’s take for example; what if a Third-Party Car Insurance wasn’t mandatory by law. In this case, most people wouldn’t even have one and in case of an accident, both affected parties would drown in baseless arguments and of course, tons of expenses!

Therefore, while the primary objective of a car insurance is to protect an affected party during a mishap or accident, there is more than one reason why a car insurance has been made mandatory in India.

• Large Number of Road Accidents: Road accidents are extremely common in India and one of the main reasons the Motor Vehicle Act has made car insurances mandatory is due to the same. In 2017, there were more than 1200 injuries reported on a daily basis due to road accidents! A car insurance would ensure no one has to bear the financial brunt in such a situation.
• Protects the Third-Party: Whether you bump into someone’s vehicle or a car hits your dear car, having at least a third-party car insurance in place will ensure that the affected third-party will be compensated for in cases of car damages or, personal damages.
  
• Makes Legal Processes Easier: When an accident happens, more than the damages – it is the legal process that takes one’s time and energy. However, when you have a valid car insurance, legal processes too are taken care of.

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Why Buying a Car Insurance Online Makes Sense?

When’s the last time you made the effort to pay your electricity bill at your registered center or, when was the last time you went to your kirana shop to get your mobile recharge done? It’s been a while hasn’t it?

Thanks to the power of the internet, most of us now use the internet to get most things done. Pay bills, recharge and now, even order groceries! Naturally, technology has also progressed in a way that we need not visit insurance agents or get in touch with our dealers to get our car insurance anymore.

Now, you can simply buy your car insurance online 😊 All you need is your basic car details and your debit/credit card to process your premium and that’s it, your car insurance policy will be emailed to you within minutes.

• Buying a car insurance online can save you so much time. You need not waste your time waiting or visiting someone to get the job done. You can do it right there on your couch, with your laptop in your hand and just about five minutes to spare.
  
• Buying a car insurance online allows you to customize your car insurance policy yourself. Moreover, with Digit’s Car Insurance; you can also customize your car’s IDV yourself.
  
• Buying a car insurance makes a lot more sense as the process of buying one becomes instantly transparent since you’re the one buying it for yourself firsthand, instead of relying on a third-party person to do it for you.
  
• The best part about buying a car insurance online is the fact that there is absolutely no paperwork involved!

Buy or Renew Secondhand Car Insurance Online

Whether you’ve just purchased a brand-new or second-hand car, a car insurance policy can be bought for any of them.

However, while purchasing your second-hand car check if the owner already has a valid car insurance and get the same transferred to your name, well within 14 days of purchase. Additionally, while insuring your second-hand car, you need to make sure:

• Both the car and insurance are transferred to your name successfully. You should ideally do this within 14 days of purchase.
• Make sure you are aware of the claim history of the car. You can simply do this by providing the policy number to the respective car insurance company.
• If you’ve had a car insurance earlier, make sure you transfer your No Claim Bonus to your new car insurance policy.
• In case the owner hasn’t had a car insurance, or it has expired, you can instantly insure your car on our website here.
• If you’ve successfully transferred your secondhand car’s insurance in your name already, check the expiry date and make sure you renew it before or on the date of its expiry.

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Buy or Renew Car Insurance for an Old Car

Whether you’ve just bought an old, second-hand car or have realized you don’t have a car insurance for your current car yet; you can instantly insure the same on our website.

However, here are three important things to keep in mind before buying a car insurance online for your old car:

• Car Use & Type of Insurance - There are essentially two kinds of car insurances; Third-Party and Comprehensive Car Insurance. Although we generally recommend getting a Comprehensive Car Insurance for maximum benefits, you could also go for a Third-Party Insurance if you’re not going to use the car much or are going to discard it soon. In this situation, a Third-Party Car Insurance could make sense as it at least fulfils your car’s legal responsibility.
• IDV (Insured Declared Value) - The IDV, i.e. Insured Declared Value is the market value of your car. Since your car is old, the IDV too would be low (you can customize this accordingly on our website while buying a car insurance online) due to the depreciation over time, depending on how old it is. The IDV directly affects your premium and sum insured. While the premium will be low, the sum insured too would be low at the time of a claim.
• Add-Ons - Add-ons are what you can opt for while buying a car insurance for your old car online. However, this only applies when you’re purchasing a Comprehensive/Standard car insurance policy. These help you and your car with maximum coverages and benefits such as; tyre protect, gearbox and engine protection, return to invoice, etc. However, since you’re planning to buy a car insurance for an old car, see which add-ons would be applicable or not. For example; A Zero Depreciation or Bumper to Bumper cover may not be applicable if your car is more than five years old.

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Buy or Renew an Expired Car Insurance Policy

Why is it Important to Renew your Expired Car Insurance Policy on time?

• You’ll Lose out on your NCB - Your NCB is your No Claim Bonus accumulated for the years you haven’t made any claims. The higher your NCB, the higher your discount during renewals. However, if you don’t renew your policy before it already expires, you lose out on your NCB and hence the discount too!
  
• Higher chances of paying a penalty - If you don’t renew your car insurance policy on time, you may be liable to pay a penalty fine as your previous car insurance policy won’t hold true after its expiry date has passed.
  
• Bear the Financial Brunt - Apart from saving on traffic penalties and your NCB, not renewing your car insurance policy in time means you may end up losing out on money in case of an unfortunate accident or mishap. Therefore, it’s always better to be safe than sorry and get your car insurance policy renewed before the expiry date of your existing policy!

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