Categorized | Car Insurance

6 Ways to Compare Car Insurance Policy

When it’s time for renewal of your car insurance many things are going in your mind like whether to stay with and get it renewed from the same Insurer or compare car insurance plans of other companies and see if you could get a better deal. Well, it won’t do you any harm if you shop around a bit and invite quotes from other companies. Comparing will only be in your favor as you can bargain for Premium from your existing insurer by showing the quotes received from the market, in case you decide to stay with that company. On the other hand it may help you switch to a better plan of a different company.

The bottom line is that; don’t renew your Policy before comparing. Explore your options; it is not mandatory to continue with the same insurer unless you have some add-ons in your policy which state that the benefit can be availed only if you stay with your current insurer. Now, let’s understand on what basis you should compare car insurance plans

1. Compare for premium

One of the most obvious reasons to compare insurance plans is to get a good plan with the cheapest premium available in the market. Compare online on insurance aggregator websites to get free of cost unbiased comparison at a single web location. Thus, in a very simplified way you can get multiple car insurance quotes to compare on a single website.

2.  Highest IDV

Especially in case of high end cars the owners want to get the highest IDV (insured declared value). IDV is the highest value recoverable from the insurance company in case of total loss. When your car is expensive one must go for the company offering the highest IDV.

3. Minimum IDV

Just like highest IDV companies have a cap of minimum IDV as well. When your car is old and to save upon premium is your primary objective, in such case look for insurers agreeing to insure your car at the minimum IDV. As premium increase with the raise in IDV you need to compare plans on the basis of the lowest IDV a company is willing to insure your car at when looking insurance for an old or inexpensive car.

4.       Maximum cashless facility/garage

Just like Health Insurance segment, cashless Claim facility is gaining momentum in the car insurance space. Insurers boast of the strength of their tie-ups with numerous motor garages wherein you can send your car for repairs and not pay upfront. When comparing on the basis of network strength ensure that the garages near your vicinity form part of their network. It is of no use to you if their network garages are located at distant places.

5.       Free Add-ons

Some companies attach some free add-ons to enhance the strength of their car insurance policies. Careful market research would let you know about the companies offering such schemes. For reference, go through the following table to understand the available add-ons in the India car insurance market.

1.       Maximum add-ons

Not all car insurance companies provide all the add-ons showing in the list above. Go for companies that are offering you your required add-ons and at reasonable rates. Compare premiums after attaching the add-ons to see how much extra you end up paying and evaluated the added cost against the benefits expected to be derived from such add-ons.