Car Insurance Comparison

When you visit  a grocery store, you spend a good amount of time in selecting the best groceries . You look around, examine, bargain and do everything in your power to det the best deals possible. Why do you take these efforts? It’s because you want to find the best value for your hard earned money.

Then why not do the same with your car insurance policy, too?

To compare car insurance policies on the basis of price and coverage offered, pros and cons help you to zero in on the policy that would be most suitable for you. If you compare insurance policies, you will not  miss out on the critical features and also stand a chance of saving money on the car insurance premiums..

Things To Know Before Comparing Car Insurance

How do you buy an insurance policy? You compare the policies, choose a plan and pay the premium – Done. But, you need to know about the various factors based on which you can compare your car insurance policies. Read on to find out:

Important Factors for comparing Car Insurance Policies

Broadly, you can use the following parameters to compare car insurance:

The Type Of Car Insurance Policy

There are various insurance companies available which offer a wide range of car insurance plans. Primarily each car insurance company has two kinds of policies to offer – Third-party liability Car Insurance and Comprehensive Car Insurance Policy.

A third-party policy is similar across insurers. It only offers financial protection from third-party liabilities, such as damage caused to another individual, vehicle or property. The price of this type of insurance policy is decided by  IRDA.

Each company offers a mix of coverage as a part of their Comprehensive Car Insurance Plan. This usually includes three basic coverages: Third-Party Liability, Own-Damage and Personal Accident Cover for owner/driver.

However, insurers also offer other value added services like:

  • Roadside assistance

  • Claims assistance

  • Wider network of garage for cashless repairs

  • Free towing services

And then there are the various add-on covers. These can be used to customize your car insurance policy. However, the specific terms and conditions may differ from one insurance company to another. This is why, it is important to know the parameters of comparison.

Quotes

Do not associate price with quality. The cheapest may not be the best. Look around for the prices offered by different insurers. But, also keep in mind the covers that you need.

Pick the one that suits your requirements and pocket both.

Coverage

Not all plans offer similar coverage. For example, a Third-Party Policy does not cover the cost of treatment/repairing damages caused to you or your car. On the other hand, a Comprehensive policy financially protects you and your car from damages.

Apart from the basic coverage, look out for add-ons such as Zero Depreciation, Return To Invoice, etc. You must understand your driving habits well, before buying an insurance policy.

You may also want to take into consideration other value-added services offered by an insurance company to check their credibility.

Claim Settlement History

You do not want to spend money on an insurance policy and still be left uncovered during difficult times. It is important to go through the claim settlement history of the insurer. Reading the customer reviews about the company might be helpful. Also, dedicating some time to do a research on the after sales services provided by the company will also prove to be beneficial.

Deductibles & Premiums

While buying a car insurance policy, you have to pay a small amount, from your pocket, during every claim. These are known as Compulsory Deductibles. However, there is an option  known as Voluntary Deductible. This is the amount of claim that you agree to pay from your own pocket, irrespective of the coverage you opt for. At the time of purchasing the policy, if you agree to pay a high amount of Voluntary Deductible, it  could reduce your premium costs, but at the time of making claim, you might end up paying more than expected . While comparing the quotes of different companies, take the deductible amount into consideration.

Exclusions & Invalid Claims

Check the damages and liabilities that are not covered by the car insurance policy. Sometimes, the losses, normally covered, could be deemed invalid. This could be because of the circumstances in which the damages took place or an improper claim process. So, go through the fine-print carefully.

Now that you are aware of the factors that are important for comparing car insurance policies, let us take a look at different ways of comparison:

How To Compare Car Insurance Policies?

You can always approach different insurance salespersons to provide you with their car insurance quotes. Insurance brokers can also help you compare and select a policy.

But to save time, you can compare car insurance policies online. You could either take quotes from multiple insurance company’s websites or approach online insurance aggregators, that help you compare several insurers under one platform.

The aggregators’ websites ask for information such as the brand name of your car , its model, the date of manufacturing, the additional covers that you need, etc.

Such information is then run through different insurance policies available. You then get a list of insurance quotes to choose from. These quotes give you details about the premium amount, the sum assured, the covers and the exclusions.

All said and done, follow one golden rule – Read the policy documents carefully.

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