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Why comparing car insurance online is crucial?

Written by Sharad Bajaj
Updated On Oct 14, 20232 min read
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Ever wondered why everyone insists you compare your car insurance policies before purchasing? Read this article to find out.

When looking to purchase car insurance people and articles on it always suggest you check the option available in the market, i.e., compare different policies. Ever wondered what they exactly mean? What you should be looking for and what are the benefits of comparing? Read this article to clear all your doubts.

What Should You Know Before Purchasing Car Insurance?

With the wide variety of car insurance plans available online make sure you have a basic understanding of it. You should be aware of the types of car insurance available, what the Insurance Declared Value or IDV means, No Claim Bonus, Depreciation rate and Add-On Covers. Also, keep in mind there are three main types of car insurance in India. The following are the insurance covers categorised according to the type of coverage they provide:

  • Third Party Insurance: This type of insurance is compulsory for every car driving on Indian roads. It covers the cost of third party liabilities in case of a mishap including bodily injuries, death and property damage. If caught without one you can be punished and fined Rs. 2,000 and/or be imprisoned for up to 3 months.
  • Standalone Own-Damage Insurance: This type of insurance covers are not compulsory and takes care of the cost of damages to the policyholder’s vehicle. It covers damages due to natural calamities, vandalism, road accidents, theft etc. It is not compulsory.
  • Comprehensive Insurance: With comprehensive car insurance you will have coverage for both your own-damage costs and your third party liabilities in the event of a mishap under a single premium.

How To Evaluate The Car Insurance Plans?

The following are some points you can use when evaluating car insurance plans:

  • Understand what you need from the insurance plan: car insurance plans are all different. Knowing what you would want coverage for, your budget and any other expectations from the car insurance. Some things you should definitely think about are your financial liabilities, your savings, your dependents, they will determine the sort for the coverage you require.
  • Understand the different types of plans : There are three basic types of car insurance available based on the coverage they provide. Third-party car insurance is compulsory and covers any liabilities related to a third party in case of a mishap. The standalone own damage cover on the other hand deals with the policyholder’s car damage compensation. The third type, comprehensive car insurance policies cover both own damage costs and third party liabilities and is the most hassle-free way to keep yourself covered.
  • Understand the costs of the purchase: When looking to purchase insurance do not simply go looking for the cheapest policy. Rather look for a policy that is affordable yet effective. It will be more financially viable in the long run.
  • Understand the add-ons available: You can increase the coverage a standard car insurance policy provides with the add-on covers. Moreover, they give the policyholder the flexibility to mould the policy to fit their needs. When purchasing car insurance make sure to check the available add-ons with your car insurance and purchase the ones that are relevant for you. Some add-ons you should definitely include the Zero Depreciation Cover and the Passenger Cover.
  • Customer Service: We usually need to contact the insurance in times of distress. If the customer service of the insurance provider is inefficient it can make the entire process of filing claims or any other interactions frustrating. Read reviews on the customer service, make sure they have a 24x7 helpline and other facilities.
  • Check claim settlement ratio: We depend on our insurance policies in times of crisis, hence, it is important to check the insurance providers reputation in fulfilling claims. You can do this by checking their claim ratio and doing research on their efficiency in processing claims.

What are the Benefits of Comparing Car Insurance Policies?

You may be wondering what is the point of this entire process. But comparing insurance companies and their policies have several benefits:

1. Comparing car insurance policies will make sure you find the most coverage in the best pricing. Rather than choosing the cheapest plan you can find the most effective one. Cheap plans usually have high deductibles, making your costs in case of an accident much higher in the long run.

2. Comparing car insurance policies will allow you to have a better idea of the market and the types of plans that are available for purchase.

3. If you choose to purchase insurance online, all this simply takes a few minutes of your time and comes with no additional costs.

Also Read

Benefits of Engine Protection Cover in Car Insurance!

How You Can Handle the Car Insurance Claim Rejections?

Takeaway

In a nutshell, the benefits of comparing car insurance before purchasing are numerous. Moreover, if you compare you can make sure that your choice is an informed one. Moreover, you have found a policy to suit your needs and at your preferred price point. Make sure to recheck the available policies at the time of renewal. Insurance policies have minor changes made to it every now and then and sometimes, they may no longer be the right one for you. To read similar articles click here.

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

Disclaimer

This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
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Written by Sharad Bajaj
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 Sharad is an insurance industry veteran who has managed motor insurance products for over a decade. He helped set up and scale the motor insurance vertical for a leading insurance company in his previous stint. In his spare time, Sharad likes to read and be in tune with nature.

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