Purchasing third-party car insurance online may seem straightforward. However, the process still warrants careful consumer consideration. As mandated by India's Motor Vehicles Act of 1988, all vehicles on the road require valid third-party liability coverage.
This plan compensates any financial losses a third party incurs because of damages from your car. While securing this basic protection online has its conveniences, many people still make mistakes when buying these policies through internet providers.
Avoiding just a few key errors can optimise your chances of getting adequate third-party coverage. This article highlights four online shopping risks you should avoid if you want to lock in the best third-party car insurance for your needs.
4 Mistakes to Avoid While Buying Third-Party Car Insurance
Ignoring the Features of Third-Party Car Insurance
When getting third party car insurance online, it's easy to gloss over the specific features of a policy. However, not taking the time to understand what protections you are and aren't getting can expose you to financial losses. Third-party plans have mandatory requirements around coverage duration depending on your car's age.
They also have standardised premium rates, as set by IRDAI, based on your vehicle's engine cubic capacity. The specific financial liabilities covered under third-party relate to property damage, bodily injury, and more. Rushing through the enrollment process online could mean you miss restrictions or exemptions listed in the fine print.
Or you risk not getting enough context on changing IRDAI premium rates each year. Double-checking the features against your coverage needs ensures no overlooked gaps in your policy. Don't let the ease of online third-party purchases stop you from closely reviewing what protections you are signing up for long-term.
Not Understanding the Premiums for 3rd Party Car Insurance
It's easy when buying third-party car insurance online just to accept the first premium you get without question. But failing to understand how your rate is set could mean overpaying. IRDAI controls how factors like car type, engine capacity, policy length, and discounts impact fixed pricing. You may miss chances to lower your premium costs without knowing how those specifics affect your premium costs.
Rushing through third-party purchases skips the chance to confirm what factors make your costs what they seem. Slowing down to chat with a rep online about confusing line items protects your wallet best. Don't take quoted rates at face value. Make sure premium costs truly reflect your situation first.
Overlooking the Exclusions
It's easy to overlook key exemptions while buying third-party coverage that insurers will not cover. However, clicking through the online application while ignoring these exclusions leaves dangerous gaps in your protection. For example, standard third-party policies do not pay out claims if you drive without a valid license, under intoxication, outside national borders, or while committing criminal offences.
Overlooking even one of these common exemption clauses when securing coverage online could deny you reimbursement after accidents you assume are covered. No matter how tedious, reviewing the exclusions section avoids disappointing revelations later.
Don't let the ease of an online application prevent you from closely analysing where your provider draws the line on claim payouts. Knowing precisely what damages or situations are exempted better positions you to weigh any policy's true, real-world value. No driver wants to realise key exceptions too late.
Not Understanding the Coverage Under Third-Party Insurance
When hurrying to purchase mandatory third-party coverage, it's easy to assume you understand exactly what damages are included. However, glossing over the specifics of legal liabilities could expose you financially after an incident. Third-party plans solely focus on compensating any bodily injuries, death, or property destruction inflicted on third parties.
There is no coverage for your vehicle's harm or losses from theft. Without taking time to ensure you thoroughly grasp what accident impacts are and are not covered before completing online enrollment, you risk nasty surprises later.
For example, incorrectly believing a sideswipe causing purely cosmetic damage to your car would be covered could dig into your own pockets for expensive repairs. Rather than make faulty assumptions, leverage online chat support when buying to double-check where liability coverage draws lines. Taking it slower upfront sets realistic expectations so misconceptions don't drain your finances over time.
The Bottom Line
If you avoid the common consumer pitfalls outlined above, purchasing third-party cover online can prove far simpler than traditional offline routes. Researching options thoroughly before committing protects you, your vehicle, and your bank balance over the longer term.
