Car Insurance Comparison

When you go to a grocery store, you spend a good amount of time in selecting the best vegetables. You look around, examine, bargain, you negotiate. That’s because you want to find the best deal.

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

To compare car insurance on the basis price and coverage offered, pros and cons, helps you zero in on the policy that would be most suitable for you. You don’t miss out on the critical features and also stand a chance of saving on a lot of money in premium.

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, do you know what to compare in different policies?

The Most Important Factor – The Type Of Car Insurance

There are various insurance companies and policies available. Primarily each car insurance company has three kind of policies to offer – Third-party liability, Comprehensive and Bumper-to-Bumper.

A third-party policy is similar across insurers. It only offers financial protection from liabilities caused to another individual, vehicle or property. The price is also fixed by the insurance regulator, IRDA.

The fun starts with Comprehensive and Bumper-to-Bumper car insurance plans.

Each company offers a mix of coverage as part of their comprehensive car insurance plan. They usually offer three basic coverage: third-party liability, own-damage and personal accident cover for owner driver.

However, companies also offer other value added services:

  • Roadside assistance

  • Claims assistance

  • Wider network of garage for cashless repairs

  • Free towing services

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

Here are the important ones apart from the type of car insurance.

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

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 damages to you or your car. On the other hand, a comprehensive policy 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.

You may also want to take into consideration other value-added services on offer. These often decide the quality of service.

Claim Settlement History

You do not want to spend money on insurance 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 companies might help. Also, read about their customer service offerings.

Deductibles & Premiums

While buying a policy, you have to pay a small amount during every claim. These are known as compulsory deductibles. However, there is something 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. At the time of purchasing the policy, this could reduce your premium costs, but at the time of making claims, you might end up paying extra. 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 know what to compare, let us look at the ways to compare policies.

How To Compare Car Insurance?

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 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 vehicle, its model, the date of its 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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