Car insurance claims plunge as drivers stay at home

April 22, 2021 - By NFL

Read Time:2 Minute, 30 Second

Table of Contents

Introduction

The Covid crisis from early 2020 has led to a significant fall in commute and outstation rides among most car owners. Consequently, there have been much less traffic and accidents on roads, at least during the nationwide lockdown, and the following localized lockdowns and travel restrictions.

A reduction in accidents has provided a bonanza for most insurance companies as the number of claims filed against car insurance policies has dived. In addition to fewer accidents, the restrictions applied during lockdowns also reduced the number of vehicle thefts.

Why buy car insurance?

You may reduce the risk of accidents by driving safely, but it is not possible to control damages arising from rash driving by others or natural calamities. Hence, insurance is necessary.

There are two kinds of car insurance

Third-party insurance, which is compulsory in India
Comprehensive insurance, which is the better choice

In case of an accident, you and your loved ones wouldn’t have to worry about the cost of repairs, treatment expenses, or legal liabilities to third parties.

Important statistics

While accurate data is not available in India, estimates from other countries suggest that car insurance claims are down by almost 20 percent.
The windfall for your insurance provider is good news for you as well.
As the profit margins have improved for most companies, they are offering 10-15 percent discounts on car insurance.

Should you buy insurance now?

Likely, premiums will soon rise again due to unpredictable factors such as intervention by the government to automatically extend insurance policies.
Insurance providers are also facing the problem of investigating insurance claims in person, so the claim settlement amount for insurance providers could be higher than usual.

If you haven’t bought or renewed your car insurance policy already, you should do it soon to benefit from reduced premiums before they go up again.

Where to buy car insurance?

Most insurance companies allow you to get vehicle insurance from their online portal.
You could also contact an agent.

However, it is cheaper to get car insurance online as insurers save money on agent commission and usually pass on the savings to consumers in the form of reduced premiums. While buying insurance online is convenient, you should always pay attention to the fine print. Before deciding on a policy, you need to confirm that it meets all your requirements.

Car insurance on Finserv markets

There are many types of insurance policies available online. Most portals would advertise competitive premiums to attract you, but the premium should not be the only deciding factor in deciding which insurance to buy. Bajaj car insurance is one of the best options available in the market. The Finserv MARKETS portal will offer you multiple options to choose a policy based on your needs. It also has a calculator which will give you instant premium quotations and allow you to compare different policies.

For most of us owning a car is a dream come true, it is prudent to prepare yourself against unknown risks.