Car insurance serves as your car’s safety net. It protects you financially while paying enormous amounts for damage from natural or physical accidents. If you are eligible for a car insurance plan, you pay a regular sum, i.e., a premium, to the car insurance company you choose. To make the most of your insurance purchase, you must know how to compare various car insurance plans and avail yourself of the best deal. It involves understanding the coverage offered, analyzing your car insurance needs, gathering quotes, researching multiple insurance companies, and a few more aspects.
Multiple insurance companies and policies exist, so comparing various car insurance plans can be challenging. However, the guide below discusses aspects that will help you compare car insurance policies and eventually get the best deal. Let’s first understand the significance of getting car insurance.
Why Should One Get A Car Insurance Plan?
The following points justify the reasons for getting a suitable care insurance plan.
- According to the Motor Vehicles Act in India, your four-wheeler must have third-party car insurance coverage to comply with legal requirements. Driving your car without an insurance policy may result in fines.
- A car insurance plan protects you financially against losses due to floods, fires, accidents (with other vehicles or objects), and theft (of the car or its components).
- It helps cover the repair costs, medical expenses, and any legal fees (if required).
Guide To Compare Car Insurance Plans
Determine the required coverage
Before proceeding with an exhaustive comparison of different car insurance providers and plans, you should first know the coverage you may need. You can contact your existing car insurance policy provider to understand the coverage thoroughly. Remember that the cheapest insurance policy isn’t always the best one; it is vital to have sufficient coverage.
Let’s understand the policy coverage for different types of car insurance.
i) Third-Party Liability Insurance:
It covers injuries or damages caused to a third party by your car. However, it doesn’t cover the damage to your car.
ii) Own Damage (OD) Insurance:
It covers damages to your car caused by theft, accidents, natural disasters, or man-made calamities. However, it doesn’t include third-party liabilities.
iii) Comprehensive Insurance:
This policy combines own damage coverage and third-party liability. It also covers damages from theft, natural calamities, and other unforeseen events.
iv) Zero Depreciation Cover:
It is an add-on that covers the full cost of replacing damaged parts (without considering depreciation). Specifically, it is beneficial for high-end or new cars.
v) Personal Accident Cover:
It offers financial compensation for medical expenses, disabilities, or the demise of the car driver due to an accident. Depending on the policy, it also covers passengers.
vi) Pay-As-You-Drive Insurance:
This policy’s premiums depend on the distance you ride, making it affordable for infrequent drivers.
While choosing one of the best car insurance plans, you can consider the following factors in the context of the coverage required:
- Your car’s value
- How frequently do you drive the car
- The number of passengers you drive
- The rate of uninsured drivers in your residential area
When considering the coverage, you also need to remember that premiums increase by an average of 49% after a car accident with injury. The premium increases by an average of 48% after a car accident (happened by you) that caused property damage to others.
Get Car Insurance Quotes
With easy online insurance quotes, you can conduct comprehensive research on the charged premium. However, you must be ready with some basic information when comparing car insurance quotes. The details include your name, residential address, car model, insurance history, previous claims, etc.
You also need to be ready with the vehicle identification number of your car and driver’s license number. Collect multiple quotes from some of the best car insurance companies. Consequently, you will be able to find insurance coverage at an affordable price.
Compare Coverage Amounts
You need to review multiple low-cost car insurance plans to choose the most affordable one. It is recommended that you begin the comparison by first looking at your current policy’s coverage. Look at the corresponding policy declaration page to determine the limits, deductibles, and premiums you usually pay. Remember to renew the insurance policy in a timely to maintain constant coverage.
Review The Insurance Company’s Reputation
The insurance company is where you buy your insurance policy by paying the agreed-upon fixed premium amount. You may choose an insurance plan with several great features and cost-effective premiums. However, you must also determine whether the car insurance company you choose is trustworthy. Check out how it handles customers’ claims and complaints and its reputation in the market.
Looking for a car insurance provider with a high Incurred Claim Ratio (ICR) is better. The reason is that a higher ICR indicates high odds of your claim getting settled. Check the company’s ratings and reviews from several sources to understand how much it satisfies its customers. This approach ensures the company has enough resources to pay claims promptly and meet its obligations to policyholders. When comparing car insurance plans, you must select an insurer with decent financial stability and a good reputation.
Choose an insurer with a strong financial standing and a reputation for reliability. Check the insurer’s financial ratings to ensure they have the resources to pay claims promptly and fulfil their obligations to policyholders.
Calculate The Insurance Premium
You must be familiar enough with how to calculate the premium of your car insurance policy. An online car insurance premium calculator helps with the same. It allows you to review multiple low-cost car insurance plans and choose the most suitable one
The calculator determines the premium based on factors like the coverage type you need, your car’s value, make and model, and the driver’s insurance history. These inputs will help the calculator generate premium quotes. You will get a comprehensive view of car insurance quotes from multiple insurers. In third-party liability, you must specify the details of your car’s engine capacity. To choose one of the most suitable car insurance plans for individuals with comprehensive cover, you must enter details like your car’s model, make, and age.
Comparison Of Fine Print
Familiarize yourself with what features are covered and what’s not in your chosen policy. Certain car insurance companies provide extra coverage free of cost. You must note down those features that stand out from standard policies. As a result, you can know whether your investment will be worthwhile or not.
You must also go through exclusions and limitations. For example, get familiar with who can drive your car and whether you will get insurance coverage when driving a rental car. As a result, these considerations will help you pick one of the best car insurance plans. Take a look at discounts you can get from different car insurance companies. Some standard discounts entail vehicle safety, telematics, multi-policy, and pay in full.
Check For Add-On Covers
While buying car insurance online, you must consider add-ons. Following add-ons can make a cover insurance policy more appealing to customers.
- No Claim Bonus
- Zero Depreciation Cover
- Engine Protection Cover
Conclusion
You should compare various car insurance plans and choose the most suitable one. It is important to do this before your insurance renewal deadline. A car insurance policy provides you financial protection in situations like car accidents, fire, or natural disasters. Comparing various insurance plans will help you find the one that offers a discount and with enough coverage meeting your needs. Remember to buy a plan from a reliable car insurance company to ensure zero hassles later on. You must thoroughly review your coverage needs and budget to select the most appropriate car insurance plan and avail the best deal.
Frequently Asked Questions (FAQs)
● Why should one compare car insurance quotes before buying?
It is vital to compare car insurance quotes before purchasing because rates vary extensively from one insurance company to another. Comparing quotes from multiple companies can help you get the best price.
● Is it necessary to renew your car insurance policy?
Yes, you must renew your car insurance policy because driving without valid car insurance can lead to fines and some legal trouble. Policy renewal will keep you compliant with the law and also avoid penalties. You will not get coverage if you drive your car with an expired policy. So, in such cases, you will have to bear all expenses if scenarios like damage or theft. Timely renewal will assist you in keeping the No Claim Bonus (NCB), and this can considerably decrease your premium.
● What aspects to look for when selecting the finest car insurance company?
You can choose the best car insurance company after reading customer reviews and evaluating coverage options, discounts, quotes, and features provided. Before deciding, make sure to focus on your preferences and needs.
● How can you find the cheapest car insurance plan?
The cheapest car insurance provides the most coverage and required add-ons at the cheapest premium. However, insurance needs vary, so you may feel a plan is more affordable, but others may not. You must review different options to determine the best deal.
● How to pay for a car insurance premium?
You can benefit from a cheap car insurance premium if you pay it annually. Most insurance providers provide the option to pay the insurance monthly and annually. However, they would charge higher for the monthly option. To benefit from the best price, you can compare car insurance plans for individuals and pay the premium in one go.
