Car Insurance Comparison

It is our tendency to buy a car insurance policy from the car dealer. We rarely take up the job of choosing a policy which would best suit individual requirements. But on the other hand, we are keen on selecting the best products available in the market, for example, a smart phone.

We go to great lengths to select a powerful model whose storage capacity is according to the amount of data we are going to store. We install only those applications which we actually need and so on.

Similarly, comparing car insurance policies, would prove to be much more beneficial, in case your car is involved in an accident, is stolen or is damaged due to an unforeseen event.

Before we shed more light on car insurance comparison, let us go through the types of car insurance policies:

Types of Car Insurance Policies

Car insurance policies can be divided into two main types:

  1. Third Party Liability policy
  2. Comprehensive policy

Third Party Liability policy

It offers the most basic type of coverage and is the least expensive type of car insurance policy. With a third party liability policy, your insurer will compensate the third party in case of damages and injuries caused to another person/property due to your car.

Comprehensive policy

A Comprehensive policy covers you against damages caused to Third Party Liabilities as well as Own Damage. It offers wider coverage and you can buy Add-ons with this type of policy.

Add-ons are additional coverage options, which will enhance the scope of a comprehensive type of policy. Some of the add-ons available in the market are:

  • Roadside assistance
  • Zero Depreciation
  • Engine Protection
  • NCB Protector

Important Factors for Comparing Car Insurance Policies

Before you begin with comparing various policies, you need to understand the factors based on which you can compare a similar type of policy. Here are the important factors based on which you can compare car insurance policies.

  1. Quotes
  2. Coverage
  3. Claim Settlement History
  4. Deductibles & Premiums
  5. Exclusions & Invalid Claims

Quotes

Do not associate price with quality. The most expensive policy 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

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. So, it is important to go through the claim settlement history of an insurer.
Reading the customer reviews about the company will be helpful.

Also, dedicating some time to do a research on the after sales services provided by the company may 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 a car insurance 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.

Ways in which you can Compare Car Insurance Policies:

There mainly two ways in which you can compare car insurance policies offered by various insurers:

  1. Insurance Agent
  2. Online

Insurance Agent 

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.

Online

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.

Carving out a little time from your schedule will lead to monetary benefits while buying a car insurance policy. All said and done, follow one golden rule while buying a car insurance – Read the policy documents carefully.

%d bloggers like this: