It is prudent for a consumer to compare the various identical products in the market before making any purchase. Similarly, comparing the best car insurance policies is also essential before buying one. This also enables you to go through the features as well as benefits offered by different car insurance companies and choose the one that suits your needs best.
Let us look into the various factors that one must take into consideration while comparing car insurance:
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Insurance provider
An insurer must have your back in difficult times. Services such as continuous assistance as well as prompt communication are useful at the time of claim. To understand the quality of services offered by an insurance company, you can simply go through genuine user reviews as well as consult your family and friends.
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Type of policy
Car insurance can broadly be categorized into two types:
- Third party car insurance
- Comprehensive car insurance
Even before you compare the various plans available in the market, you must note down your requirements and then decide the type of policy you want to compare. You would only end up confusing yourself if you go comparing all the different types of car insurance policies at once. Hence, select a type of insurance after jotting down your requirements and compare it across insurance providers. You can buy comprehensive as well as third party car insurance online.
Insured declared value
IDV stands for Insured Declared Value, which is calculated after deducting depreciation from the original selling price. To clarify, IDV is not the resale value of your vehicle but is rather the amount your insurer will pay if your car is damaged beyond repair or stolen. Different insurance companies use different methods to calculate IDV but the base formula remains the same. Hence, it is important to check with the manufacturer and keep a number in mind that is approximately equal to the current market value of your vehicle before considering the IDV offered by the insurers. This way, you can select the one which is close to the figure that you have estimated.
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No claim bonus
No claim bonus, or NCB, is a concession on premium given as a reward by your insurance company for not raising any claims during the policy period. The concession takes effect during the insurance renewal.
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Add-on cover
Buying add-ons, i.e. additional coverage options, along with your car insurance policy helps you customize your policy as per your requirements. But remember, all insurance companies do not offer all the add-on covers that you might require. Hence, look at the policy documents carefully when comparing car insurance.
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Premium
To compare car insurance policies based on the amount of the premium is the norm. However, before you consider the premium, look at the coverage and services offered by the insurer. Addition of important covers can increase the cost of the policy at times. Therefore, the amount must be taken into consideration only after all factors have been compared and accounted for.
How to compare plans?
As compared to the traditional method, comparing car insurance online is easier and faster. Earlier, a person had to get in touch with the insurance broker and compare policies manually. However, if you compare car insurance policies online, you would have to fill your details only once and take a look at the different quotes in one go. The digital way has enabled people to compare and buy car insurance online instantly.
