Why should you Compare Car Insurance before buying a Car Policy?
Buying their dream car is a special
moment for everyone. A lot of planning goes into it, be it the finances, the
choice of model to go for, the right day or time to welcome the car home and
the list is endless. It surely matches the enthusiasm of any other fun-filled
event in our life!
Needless to say, enough caution is
exercised by us as buyers to ensure that the vehicle is perfect and in pristine
condition. However, there is one element of this car purchase that goes fairly
neglected despite its importance. Well, it’s true! We’re talking about the
insurance policy opted for the car as buyers seldom take the time out to
understand and learn the different policies in the market. Most people get
acquainted with the nitty-gritties of the insurance policy only when it’s too
late. Even for those who have been owners of cars for years, comparing
insurance before renewal is an important step yet overlooked!
This is exactly why comparing car insurance policies for your new car should be a certain step before
making the purchase of the new car. Similarly, as the date for renewal inches
closer, comparing your car insurance is vital.
Comparing Insurance will benefit you in
the following ways:-
1) Find the right Policy: The market is cluttered with tons of different insurance
companies and their products. A quick comparison of the different car insurance
policies will start you on your journey to choosing the right one for your
vehicle! Affordable policies are around the corner and an exercise in comparing
policies makes them more visible to you.
Understand what’s on offer: It is only after comparing a couple
of different car insurance policies that you will start getting acquainted with
the types of policies on offer and the one you would like to actually go for.
Reliability of Insurer: Dealing withinsurance companies can look simple until you brush through the
lengthy Terms & Conditions pages. Comparing the insurance companies by looking
for reviews of people who have been consumers will an important exercise.
offers and discounts: A little time invested
in research can save you a lot of money sometimes. So, we recommend looking out
for offers and discounts that the insurance companies are giving out while
comparing different policies.
Claim compatibility: As discussed earlier,
it is best to understand the utility of having an insurance policy before it
gets too late. Acquainting yourself with the processes of claiming your cover
when needed is important.
Factors you should consider while comparing car insurance
- Coverage Type: Your insurance policy can be majorly of two types, namely,
third party insurance and comprehensive policy. According to the Motor Vehicles
Act, 1988 it is mandatory for all car owners to have third party insurance. A
comprehensive policy also covers third party damages because it is inclusive of
third party insurance. Comprehensive policy will have a higher premium than the
third party policy.
- The term ‘IDV’: The insured declared value is the maximum amount of assured
value given to the policy-holder in case of theft or an accident. Though this
amount is determined by the insuring company, you may customize IDV with some
insurers. Hence, the higher the IDV, the higher will be your premium.
- Premium: After
doing a comparative study of the different premium amounts offered by insuring
companies. Look for a quote that doesn’t blow a hole in your pocket while at
the same time protects your car from risks like thefts, accidents and other
specific coverage areas like engine & gear-box protection, breakdown assistance
which can be included by opting for add-ons.
- Add-ons: As
the name suggests, these come in addition to the comprehensive policy coverage offered against the premium amount.
Each add-on is separately chargeable and adds to the premium. The add-on factor
will ensure wider coverage for your vehicle. On the contrary, if you go for a third party car insurance, you are
eligible for only the Personal Accident Cover.
- Claim settlement: Look for an insurance company with a higher claim settlement
ratio which means the company can be trusted with coverage in case of a mishap
with your vehicle. Claim settlement aspect is of paramount importance to the
insured. This is an important factor to be considered while comparing
- Customer service: Ensuring a steady support at the company’s end for its
customers is necessary for a policy buyer. Car insurance premiums paid on a
yearly basis must be rewarded with good customer service for smooth handling of
issues, if any.
- Garage Network: A solid network of garages across the country that can
facilitate cashless transactions in case of a breakdown is another aspect of a
car insurance policy that cannot be overlooked while comparing.
Benefits of comparing car insurance online
- Learning Benefit:
is a comparative analysis done by you yourself, there is a definite benefit of
completely knowing what you are getting into. It comes in handy when you are
claiming for insurance in times of need.
- Quicker Process:
car insurance online will have you comparing different policies by yourself but
it is very likely that you will save a lot of time. This is because comparing
insurance online is much quicker and easier than its offline counterpart.
- Insurance Premium Calculator:
Car Insurance Calculator is very helpful when it comes to calculate the premium and
coverage. The way it works online is you put in the details of your car and the
calculated premium shows up on your screen in a matter of seconds. This gives
you much more clarity as compared to visiting an insurance agent.
- Simple Procedure:
process of comparing car insurance online is very simple and anyone logging on
to such websites even for the first time can get it easily. There are numerous
websites to choose from as well.
Things to remember while comparing car insurance online:
- Reliability of Company:
is a valuable asset. A quick research by way of Google reviews and Facebook
pages will give you an idea if the insuring company is reliable or not. Also,
check the settlement ratio of your car’s insurance company before buying the
and compulsory deductibles are two types of charges that get applied on your
claim amount. When you go for the voluntary deductible, look at covers that are
low-risk to you. Higher the deductible, lower is your premium.
- Premium Break-up:
insurance premium amount is a sum of all that is covered for claim. This also
will go on to include any add-ons that are opted for by you. As you understand
this while comparing, you will know what you must be paying for, on your car
- Clarity of Your Needs:
compare different policies, assess the most suited insurance for your car in
specific terms. Taking into account your city of residence, the cost of add-ons
v/s the risks involved and the age of vehicle, you are bound to be clearer
about your choice.