Would you buy a car without comparing it with other cars? No. The same should apply to your car insurance policies as well. You should always compare different car insurance policies online before you decide on which one to buy. So how exactly would you compare different insurance plans and what are the factors to consider?
1. Premium and Deductible:
Premium is the amount you pay to the insurance company to purchase the insurance. This is basically, what you are paying for the insurance. The deductible is the amount that would pay from the approved claim amount in case of a claim. The insurance company will only pay the amount after the deductible. The aim here is to get a policy that offers you the best coverage without charging a very high premium or deductible. This should be one of the first points of comparison of car insurance online.
2. Claim Settlement Ratio:
You should definitely look at the claim settlement ratio of each company as it will tell you the chances of your claim being paid. Always opt for a company with high claims settlement ratio.
3. Coverage:
It is important to know the details of the coverage offered by the insurance policy and compare this with the coverage offered by other policies before you make a decision.
4. Discounts:
Many insurance companies offer discounts to customers based on their history, age, and many other factors. You should compare the discounts offered by different car insurance policies online to ensure that you are getting the most coverage for the least price.
5. Cashless Network Garages:
Many insurance companies have cashless network garages where you can get your car repaired without making any payments on the spot. It is always better to opt for a company that has many such garages, especially in your city.
Apart from the above factors, it is also important to know what risks are covered by your insurance plan. The next section will be covering this aspect.
Risks Covered By Car Insurance
Most comprehensive car insurance policies cover the following risks, irrespective of the company that is offering the insurance:
1. Physical Damage:
Any damage that is caused to the vehicle in an accident will be covered by the insurance. But keep in mind that there is a difference between bumper to bumper insurance and full coverage. Go through these differences and understand and evaluate them before you decide on a policy.
2. Towing Charge:
What happens if your car breaks down in the middle of nowhere? You will need to get it towed to the garage for repair and towing is not a cheap service. But don’t worry, the towing charge is covered under your insurance policy.
3. Theft:
If your car gets stolen, the insurance company will reimburse the insured declared value of the car. The older your car, the lesser it’s value. Nonetheless, the insurance payout can help you in buying a new car.
4. Damage Due to Natural Calamities:
Natural calamities always take you by surprise and the more often than not, your car will suffer some form of damage. But your car insurance covers these damages as well.
5. Third Party Liability:
A third party insurance covers any damages, death and property damage caused to a third-party or third party property as a result of an accident in which you were involved. Third-party coverage is compulsory and therefore, a comprehensive plan that covers everything is a good idea.
Is Car Insurance a Necessity or Luxury?
We can never predict when an accident, theft or a natural calamity might happen. Any damages that are caused to a car due to any of these events might leave your car unusable till it is repaired. When such events happen, there is no guarantee that you have enough money to pay for such repairs. Moreover, in cases of theft, you are losing all the money that you spent on the car.
A good insurance policy takes care of all this. Not only does it pay for any repairs to the car, but it also pays for any medical expenses that are incurred due to the accident, and it also pays you the value of the car in case of theft.
It is clear that car insurance is in no way a luxury, it is a necessity. You should definitely get insurance when you buy a car, and you should also renew it regularly.
If you want to compare different car insurance online in India, Coverfox.com is a site to do the same. You can also purchase your insurance from the same site.
