It makes sense to compare various products of similar type before making a purchase. Similarly, comparing car insurance policies will also enable you to go through the features and benefits offered by various car insurance companies. In this article, we will discuss various factors that you should consider while comparing car insurance.
Factors To Consider In Car Insurance Comparison
#1 Insurance company
Comparing the services offered by various insurance companies will be beneficial if you file a claim. Ideally, an insurer should have your back in difficult times. Services like continuous assistance and prompt responses will be very helpful at the time of claim. You can understand the quality of services offered by an insurance company by going through genuine user reviews. To do so, consider taking a look at testimonials, and social media reviews of the company. Also, take a look at the claim settlement ratio of the insurance company.
#2 Type of policy
Car insurance can be of the following two types:
- Third-party car Insurance
- Comprehensive Car Insurance
Before you begin comparing policies, you should note your requirements and decide on the type of policy you want to compare. Comparing different types of car insurance policies will not be beneficial as their coverage will differ. Compare car insurance of the same type that is offered by various insurance companies and then choose the one that suits your requirements the most.
IDV is the Insured Declared Value of your car. Bear in mind that IDV is not the resale value of your car. Your insurer will pay you an amount approximately equal to the IDV in case your car is damaged beyond repair or if it is stolen. Different insurance companies might offer a different IDV for your car. Before taking a look at the IDV offered by the insurers, keep a number in mind that is approximately equal to the current market value of your car. Then proceed to check the IDVs and choose the one closer to the figure you have calculated.
NCB i.e. No Claim Bonus is a discount given by your insurance company as a reward if no claims are raised during the policy period. This discount takes effect at the time of car insurance renewal. At the time of car insurance comparison, make sure that NCB is taken into account as sometimes a quote might be generated without considering the NCB. This discount increases with the number of consecutive claim-free years and can be as high as 50%.
#5 Add-on Coves
Buying add-ons i.e. additional coverage options with your comprehensive car insurance policy will help you customize it as per your requirements. However, all insurance companies do not offer all the covers that you may require. The most useful add-on covers are zero depreciation, roadside assistance, and return to invoice cover. A basic personal accident cover will be included in your policy as it is mandated by the insurance regulator i.e. IRDAI. Take a look at the covers offered by insurers while comparing car insurance.
Comparing car insurance policies based on price is the norm. However, the price should be considered after taking into account the coverage and services offered by the insurer. Sometimes, important coverages slightly increase the cost of the policy. So, the price should be taken into consideration as the last factor of car insurance comparison.
How To Compare Car Insurance?
Comparing car insurance online is much easier and faster as compared to the traditional method. Earlier, one had to get in touch with an insurance broker and manually compare policies. But if you compare car insurance online, you can fill your details just once and you can take a look at various quotes in one go. The digital way has also enabled people to quickly buy an insurance policy. A softcopy of your insurance policy will be generated within minutes of you starting the purchase journey.