Why The Cheapest Car Insurance May Not Be The Best?
Updated On Nov 11, 2023
We often look for a cheap car insurance policy. However, it is often not the right thing to do. In this article, we will explain to you why the cheapest policy is not the best policy.
A car is a major purchase in our lives and we go to great lengths to take care of it. Buying a good car insurance policy is one way of doing this. Insurance works as a protection for the vehicle. Thus, when choosing a policy you want to find the best one in your price range. Though it is enticing to compare policies to find the cheapest bargain this is usually not the best option. In this article, we will tell you why and how to find affordable and a good insurance policy at the same time.
Why Should You Not Choose The Cheapest Car Insurance Policy?
Being ‘cheap’ is not indicative of a good insurance policy. Insurance policies do not have to cost the earth, however, the premium is indicative of how much coverage the policy will offer. Cheap insurance sounds like a good deal, but it has a number of drawbacks. The following are some of the drawbacks of the cheap insurance policies:
- Less Coverage: The cheapest insurance policies are ones that cover third-party liabilities, however, offer no compensation for the damages to your vehicle. A very low premium own-damage insurance also might offer compensation but it will possibly so low that it will not cover the cost of the damages.
- Poor Customer Service: Is a large part of the insurance, especially when you file for a claim. With the cheapest policies, it will be difficult for companies to provide efficient service by duly trained customer service personnel. This can make your already difficult time of facing a mishap even more frustrating.
- Higher Deductibles: These are the parts of damage to your car that the policyholder is expected to pay in the event of a mishap. They can heavily reduce the premium but at the cost of far lower compensation. This can make a huge difference to you especially in a time of crisis. Click here to read more.
A good insurance policy, however, need not cost the earth either. What you should be looking for is an ‘affordable’ plan. It will help you stay within budget, but without the low compensation and high deductibles of the ‘cheap’ policies. Click here to find the best deals.
Things To Keep In Mind While Choosing A Car Insurance Policy
The following are some things to keep in mind while buying car insurance to find a policy that is affordable but effective :
- Compare Policies: This is a basic step to identify and shortlist the best possible options for you. Moreover, with the process now being entirely online, it is easier than ever before. Click here to compare car insurance policies for your car.
- Check Insurance Company’s Claim History: The Claim Settlement Ratio (CSR) is a good way of checking how they measure up. Most car Insurance companies have an 85% rate, hence you should be looking for the same or higher numbers.
- Check Strength of Network Garages: Check to make sure that your insurance provider has a wide web of cashless garages across the country. That way any repairs etc. in case of a mishap happen, it is less of a hassle for you.
- Check Discounts: This is available in many ways. As loyalty points, special memberships, as special offers for those who install anti-theft devices etc. To read more about smart ways to get the best deal while purchasing car insurance click here.
To conclude, there are several policies on the market that offer car insurance at very low prices. However, they do not necessarily have the most coverage or provide the most protection in case of a mishap. It is better to look for an affordable policy that is both good at the price range level and efficient at providing better coverage.
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.