Compare Car Insurance

What do you do when you need to purchase a shoe? You go to each shop, compare the options available and subsequently, choose the best one for yourself.

Again, with the advent of online shopping platforms, choosing a shoe has become even simpler, right? You can simply look up the different options, compare between them and with a few clicks, make your purchase.

Purchasing a car insurance policy is not different from this. You check the different options offered by insurance providers, compare car insurance policies, and opt for the one best suited for your requirements.

Why should you compare car insurance policies, you ask? Let us take a look!

1. Choose the right type of Car Insurance Policy

In India, car insurance policies are of two types:

• Third-party car insurance
• Comprehensive car insurance

The first one is a liability-only cover which is mandatory under the Motor Vehicles Act, 1988, for every Indian vehicle-owner. This insurance mitigates your financial liabilities against damages caused by your vehicle to any third-party vehicle, property or person.

The comprehensive insurance policy, on the other hand, provides better-rounded coverage and imparts all the benefits of a third-party cover along with financial protection for damages caused to your own vehicle.

But the benefits offered under each of the comprehensive insurance policies vary according to the discretion of insurance providers.

That is why it is crucial to compare insurance policies before availing them, to ensure that you maximise your benefits from a car insurance policy. 

2. Be Better-informed about your Policy

Well, if you purchase the first policy you look at, you will never know if you could have availed one with better benefits, right?

But if you compare different car insurance policies before purchasing them, you will be able to make a much more informed decision and as a result, enjoy maximum benefits from it.

3. Save Money

Let us look at things objectively. Most of us have the propensity to select the cheapest plan while purchasing a car insurance policy. But doing so can often be detrimental because it might lead you to pay higher deductibles while raising claims, or compromise on the benefits availed. 

Thus, comparing car insurance policies before availing them saves you from unnecessary expenses.

4. Know about Different Policies available in the Market

With the advent of the digital age, comparing insurance policies has become even easier. You can simply look through websites of different car insurance providers and have a better understanding of the various plans available in the market.

5. Save Time (and make things hassle-free)!

When you compare car insurance online, it takes you only a few minutes, without any additional costs.

That is why, if you want to want to avoid instances like a cumbersome claim process later, it is best to invest a few minutes of your time beforehand and do the necessary research!

6. Helps to Gauge the Credibility of the Insurance Provider

When you purchase an insurance policy, you will definitely NOT want to be stuck with a fraudulent company. Thus, comparing policies online and checking the customer testimonials and reviews about the insurance company can help you to ascertain their credibility and avoid any mishaps later.

Knowing the parameters, based on which you can compare your car insurance policies before purchasing one, can be quite helpful for maximising your benefits from it.

So, to make things easier for you, provided below is a list of factors to check through while you compare car insurance plans:

1. Coverage

The first and the most significant point of comparison before choosing a car insurance policy should be the coverage it provides.

Below is a table illustrating the benefits generally offered under third-party liability covers and comprehensive covers, to help you make the most out your car insurance policy:

2. Car Insurance Premium

Affordability is one of the most crucial factors to look through while choosing a car insurance policy. While most of us deviate towards insurance policies with lower premiums while choosing a comprehensive car insurance policy, it is not always a good idea. This is because a lower premium might mean lesser benefits.

Further, you might also be required to pay higher deductibles while raising claim – none of which is desirable. That is why, if you compare car insurance policies, you will be able to choose the one which provides the maximum benefits at reasonable premiums. 

Know more about:

• How to Calculate Car Insurance Premium
• Car Insurance Calculator

3. Insured Declared Value

Insured Declared Value or IDV is the total sum assured under your insurance policy, which can be claimed on theft or total loss of your vehicle.

IDV is calculated by taking the manufacturer’s listed selling price and subtracting your vehicle’s depreciation from it.

Now, the sum assured under IDV can vary from one insurance provider to another. That is why it is important to compare this parameter to avail the highest IDV for your vehicle.

4. Claim Settlement Ratio

Claim settlement ratio is the total number of claims settled by your insurance provider against the total number of claims raised.

By comparing car insurance policies, you can purchase the same from a company with a high claim settlement ratio.

By doing so, you minimise the chances of your claim getting rejected.

5. Add-on Covers

Insurance providers offer several add-on benefits with a comprehensive car insurance policy that help to maximise the financial protection extended to you.

That is why it is best to look for policies that offer the highest number of add-on covers at a reasonable price. For instance, you can customise your insurance policy to include benefits like –

• Zero depreciation cover
• Return to invoice cover
• Tyre protect cover
• Engine and Gear-protection cover
• Consumable cover
• Breakdown cover
• Passenger cover

...and so on! If you compare car insurance plans, you will be able to avail the one with the maximum types of add-on covers.

6. Availability of Customer Service

It is perhaps redundant to say that it is always more advantageous to choose a company that offers 24x7 customer service benefits. This is especially beneficial if you are faced with an issue regarding your insurance policy, which needs to be resolved fast.

You can further check the responsiveness of each customer service under the insurance company for yourself by calling them and enquiring about your required policies. 

7. No Claim Bonus

No Claim Bonus in car insurance is the discount that you can avail on the premium payment for your car insurance policy if you have not raised any claims under it in the previous year.

The NCB discount can range between 20% and 50% and is mostly calculated on the own damage component of the insurance cover.

That is why, No Claim Bonus policy is one of the points on which you can compare insurance policies to save on your subsequent premium payments!

8. Network Garages

If you have a comprehensive car insurance policy, you will be able to enjoy the benefit of cashless repairs for your vehicle from various network garages under your insurance provider.

That is why, when it comes to choosing an insurance policy, it is best to opt for a company that has the maximum number of network garages under their service.

Thus, the number of network garage is one of the key points of comparison, which will allow you to maximise the cashless repair benefits for your car.

9. Buying and Claim Settlement Process

Last but not least, when you compare car insurance policies, you must look for ones that come with easy purchase and claim settlement processes.

With an easy online application process and minimal documentation requirements, availing the policy becomes simple.

On the other hand, and easy claim settlement process will ensure that your claims are settled without any hassle later on.

Thus, if you compare car insurance policies using these parameters, you can make sure that you avail the best insurance plan in the market.

1. Convenience

For starters, it is much more convenient! You can surf thousands of websites from the comfort of your home and make a well-informed decision after that.

2. 24x7 Availability

Information over the internet is available 24x7. Further, you can also contact the customer care service of your insurance provider via online chat rooms, which are available at all times during the day/night.

This allows you to get your queries about the insurance policy resolved according to your convenience.

3. Discounts

When you choose an insurance policy online, you can check the discounts that you can avail under it, applicable for your car.

4. Customer Reviews

It can be quite difficult to gauge a company’s reputation unless you compare the insurance policies online. With Google reviews, social media comments, etc. you can get a comprehensive idea of a company’s reputation.

• Third-party insurance covers are mandatory, with each insurance company offering the same benefits. So it is the comprehensive policy coverage you should compare for each insurance provider.
• Make sure you check for copayment and deductible clauses under each insurance policy and try to avoid the ones that come with such clauses to reduce your financial liability while raising claims.
• Make sure you look through the list of add-on covers provided and choose the insurance policy offering maximum benefits in that regard.
• Don’t forget to look through the instances that are not covered under the plans offered by different insurance providers!