Consider These 10 Points When You Compare Car Insurance Online

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Here are 10 things you must consider when you compare car insurance policy online

Under the Motor Vehicle Act, 1988, having a motor insurance policy is compulsory for every car that runs on the road. When you buy a four wheeler insurance cover it not only makes you abide by the law but also offers you benefits in plenty. Buying car insurance online is an easy and simple process, however, before you buy car insurance, you may struggle a little to choose the right plan. If you are planning to buy a car, consider these 10 Points When You Compare Car Insurance Policy Online:

1. Understand the Types of Car Insurance Policies

The first thing worth considering when you compare car insurance online is the kinds of car policies that are available. You need to know that:

• Third-Party Liability Car Insurance
  
  Covers the damages that your vehicle causes to a third party person or property. Your own damages are not covered
• Comprehensive Car Insurance
  
  Also called package car insurance, here third party liabilities along with your own damages are covered
• Standalone Own-Damage Car Insurance
  
  If you already have third-party insurance and wish to extend the cover, you can opt for a standalone policy
• Pay-As-You-Drive Car Insurance
  
  When you do not use your car too often you can purchase this kind of policy, where you buy insurance according to the number of kilometres you drive in a year

2. Evaluate Your Needs

Once you know the kinds of policies that are available in the market, you can chalk out your needs and then buy a policy that suits you, your car and your budget. Though it is only the third-party liability insurance that a vehicle is mandated to have, under the law, a comprehensive policy offers you much wider coverage.

3. Know the Company

When you buy a car insurance policy, make sure you research in detail how the company works. It is important to read the reviews and testimonials about the company, which are available online. Try to pick a company that has a good reputation with its customers.

Tip: After you compare car insurance online, you can visit the websites of the short-listed companies and get to know about their background and procedures.

When you compare car insurance, read the fine print to try and understand in detail how the plan works to avoid any unwanted surprises

4. What’s Covered and What’s Not?

Though it may seem that most companies offer similar coverage, it is important to read the fine print and understand the inclusions and exclusions before making the final decision. So, when you compare car insurance, try and understand in detail how the plan works to avoid any heartburn later.

Tip: If you feel you aren’t able to understand the policy documents, speak to a customer care executive or an insurance agent to get to know the details of the plan.

5. Add-Ons

With a comprehensive policy, you have the option of further enhancing the coverage by opting for add-on benefits. Though adding an add-on will increase the premium, it would benefit you in the long run.

Tip: Once you compare the prices offered by different insurers on PayBima, choose the rider/ add-on that you really require, from the company that offers you the best deal.

6. Network Garages

At a network garage, the company settles your repair bills directly with the garage. Most of the time, the claim settlement process at a network garage is quick and convenient and requires minimal paperwork.

Remember: Cashless Repair at a network garage does not mean you do not have to pay anything from your pocket. Though mostly a small amount, you do need to pay for the uncovered expenses from your pocket.

7. Comparison of Quotes

When making an online purchase, comparing the quotes is like a golden rule. To make the comparison easier and simpler you can make use of an online car insurance calculator. This free online tool can compare multiple policies at the same time.

Remember: When comparing the policy prices by 2 or more companies, make sure you are comparing the same cover. Adding different add-ons would not give you an accurate estimate.

8. Claim Settlement Ratio

CSR, claim settlement ratio of a company is published by the Insurance Regulatory and Development Authority of India on an annual basis. This is the percentage of the number of claims that have been settled against the total number of claims that were raised.

Remember: Often, there are fraudulent claims or claims that are filled without proper documentation, so make sure you consider other important feedback as well.

9. Discounts

You may not be able to get a discount when you go for Third-party insurance, however, you can negotiate with your insurance company when buying a comprehensive policy.

10. Customer Care

Customer care is the face of the company and it reflects how the company deals with its customers. Customer care that is proactive, well informed and courteous must be preferred.

Conclusion

There are many insurance companies that offer car insurance, and though this competition may help you as a customer in getting a good deal, it can often become a little confusing to choose the best policy for your vehicle. When you compare car insurance policy online, keeping in mind the points given above will help you in making the right choice.

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