Owning a car and a car insurance policy goes hand-in-hand. That’s because car insurance with a third party liability cover is mandatory under motor laws of India. If you have a car of your own or plan to buy one soon, you might already be aware of it. Besides, who wouldn’t want to keep their car safe from all kinds of risks. After all, buying a car involves a big investment and it only makes sense to protect it from any probable damages or loss with the help of a car insurance policy. A car owner can choose to buy car insurance online through insurance brokers or offline through an agent or by visiting the motor insurance company. For instance, he can buy car insurance online.
Car Insurance Coverage
Every car owner should be aware of the kinds of car insurance coverage provided by motor insurance companies in India. If you are buying a car insurance just to abide by the law, then you can go for a third party liability insurance that will protect you against any third party claims for causing accidental death, bodily injuries or property damages. But if you seek complete protection of your car, including third party cover as well as coverage against natural calamities, robbery, fire, vandalism, etc., comprehensive car insurance is the ideal choice.
Every car owner has the freedom to use his discretion when it comes to choosing a car insurance policy. But a smart person will use all possible tools to find his ideal car insurance plan and take all possible steps to reduce his premium cost. The best way to find the perfect plan is to compare car insurance plans offered by various motor insurers online. Insurance brokers, such as Policybazaar, allow car owners to compare various car insurance plans online before buying one.
Reasons to Compare Car Insurance Policies Before Buying
If you are wondering why should you compare different car insurance plans before buying any one, let us help you out. Here are some of the reasons why comparing car insurance policies before buying is a wise decision:
Know About Different Car Insurance Policies in the Market
The car insurance market is vast and checking plans by different insurers individually can be time-consuming. To avoid the hassle, car owners often choose amongst the first few plans they come across. But if you buy car insurance from Policybazaar , you can learn about various car insurance plans available in the market in one place and compare them to find your ideal plan.
Choose the Ideal Coverage for Your Car
Comparing car insurance plans help a car owner to choose the right kind of coverage for his car. All car insurance plans offer third party cover at a premium set by the IRDA. However, the level of coverage available under comprehensive plans differ from one insurance company to another. By comparing different plans, you can find a car insurance plan whose coverage level matches your expectations.
If you buy car insurance online, you can end up saving big by choosing a plan that suits your coverage needs without being expensive. Online comparisons allow you to check the coverage level as well as the premium cost of different insurance plans. Thus, you can avoid buying a car policy at a higher premium even when the same coverage is offered by another motor insurer at a lower price.
Check the Credibility of the Motor Insurer
When your car gets damaged, the last thing you would want is to learn that your insurer is fraudulent or will take ages to pay you the claim amount. Online plan comparisons enable you to check the credibility and authenticity of the insurance company along with the claim settlement ratio and claim delivery speed. Moreover, if you buy car insurance online, you can go through the customer reviews and testimonials to get a better picture of the after-sales service and claim payment speed of various motor insurers.
Find Insurer with Better Services
Different insurance companies may offer different benefits and services as part of their car insurance policy. Comparing various plans online allow a car owner to find out which insurer is offering what benefits. Thus, you can find an insurer that provides better services and benefits to its customers at an economical premium.
Make an Informed Decision
Car insurance is extremely important if you wish to avoid incurring any losses due to loss or damages to your car. By comparing car insurance plans, you can get a clearer picture of the coverage, benefits and premium charged by different motor insurance companies. Thus, you can make an informed decision by analysing these plans and choosing the most suitable plan for your car.
Value for Money
Comparing car insurance plans online help to earn value for money invested in car insurance. A car owner is able to analyse different car insurance policies and find a plan which is economical and provides maximum coverage. It also enables them to check the credibility and customer service availability of different motor insurers. Thus, you can choose a plan that justifies the premium paid.
Did you know the Government had extended the renewal dates for car insurance policies during lockdown?
Factors to Consider While Comparing Car Insurance Policies
Buying car insurance is an extremely important decision to prevent any major loss or damages to your car due to third party liabilities or a mishap. But before you buy car insurance, you must be aware of certain factors that can help you narrow down your options and choose the most suitable plan. Take a look at the factors that every car owner must consider while comparing car insurance policies:
- Car Insurance Premium – Everybody car owner would prefer to buy a car insurance plan available at a lower premium. However, only relying on the premium for choosing your policy can be a bad idea as low premium may mean lower benefits. For instance, a plan with a lower premium may require you to pay a higher deductible during claim settlement. Thus, you must look for a policy that provides maximum benefits at the lowest possible cost.
- Coverage – Always check the coverage of a policy before you buy car insurance. Firstly, you must be clear that you want comprehensive coverage or only third party liability cover. Next, you must compare the coverage provided by different motor insurers to find a policy that provides greater coverage without charging a huge premium.
- Insured Declared Value (IDV) – IDV is the maximum claim amount you’ll get in case your car is stolen or completely destroyed. Therefore, you must ensure that the IDV offered by a motor insurer is sufficient to cover all the damages or replace the car with a new one if needed. Otherwise, you will have to pay from your own pocket.
- Add-Ons Covers – Motor insurance companies offer add-on covers, such as zero depreciation cover, roadside assistance cover, etc that extend the car insurance coverage on payment of a higher premium. You must compare different policies to find a plan that offers maximum add-ons at an affordable price.
- Cashless Garage Network – While buying car insurance, you must compare the cashless garage network of different insurers. A larger network of garages means you’ll be able to get cashless repairs done which involves a smoother claim process. Hence, you must look for an insurer with a higher network of cashless garages.
- No Claim Bonus (NCB) – While comparing insurance policies, you must look for an insurer that offers good rewards on NCB. This bonus helps to reduce the premium amount if no claims are made in the previous policy year and thus, is important.
- Claim Settlement Ratio (CSR) – You must compare policies to find a car insurer with a higher CSR as it depicts the ratio of the total number of claims accepted against the total number of claims filed. Thus, a company with high CSR is more likely to accept your claim than the one with a lower CSR.
- Customer Service Assistance – As a car owner, you must check the customer services offered by various insurers. Customer services assistance is important at the time of raising claims and thus, should be considered when you buy car insurance.
- Claim Settlement Process – All car owners must compare the claim settlement process of various insurers before buying insurance because faster and customer-friendly claim process means that there will be a lesser hassle and they’ll be able to get their claim money at the earliest.
A famous saying goes ‘half knowledge is dangerous’. Thus, if you buy car insurance without checking all the plans in the market then it can be a non-profitable decision that can be extremely dangerous for your car. Besides, a wise man will always try to get the best deal. Thus, before you buy car insurance, you should compare car insurance plans effectively based on its coverage, benefits, services, etc. and ultimately save big on the premium amount.