Accidents might happen with anyone and can cause significant damage to you, your vehicle, as well as any third-party. A substantial loss can even wipe out your savings if you do not have insurance. Hence, it is a mandatory requirement to buy an automobile insurance policy as well as to keep renewing it every year to be legally eligible to drive a car. Besides the legal implications, it is also essential for you to consider the importance of having an insurance policy on your vehicle.
An insurance policy would compensate your financial losses in the event of an accident and also pay off any aggrieved third-party for the damages they incur. With the help of the correct car insurance, you can even avail cashless repair services at garages in the insurer’s network. You also opt for multiple add-on benefits that enhance your car insurance coverage.
Technological developments and the increasing ease of availing services online now allow us to buy car insurance online as well. However, there are also a few points that you should keep in mind while buying car insurance online. Let us take a closer look at them.
How to compare car insurance plans
There are several insurance policies available in the market. Hence, you need to compare all of them and select the one that suits your needs best. Here are some questions that you can ask to choose the best car insurance policy.
- What does your coverage require?
Before you opt for any car insurance, you must thoroughly compare and take note of the policy benefits and the coverage it offers. Some policies, such as third party car insurance, cover many significant points while others can be enhanced through add-on covers. Hence, you need to compare the various coverage options. The quantum of coverage you get in all the policies will vary from the comprehensive policy. The most ideal policy would be one that provides multiple benefits at the best cost.
- Compare the Insured Declared Value (IDV)
The vehicle manufacturer’s selling price minus depreciation is called the Insured Declared Value (IDV). The IDV is the compensation that is payable to the policyholder and reflects on the cost of the premium. The rate of depreciation depends on your car’s age, which means older the car, higher the depreciation and lower the IDV. The premium you pay on a car insurance policy depends on factors such as IDV, the make and model of the vehicle, the year of purchase, and city of registration, among a few other things.
- Insurers’ claim settlement practices need to be compared
When it comes to claiming insurance, everyone would want a policy that has an easy, streamlined claim process. Remember, each insurance company has its procedure. The claim settlement ratio of different insurers can be easily found online. The higher a company’s claim settlement ratio, the better are your chances of being compensated in the event of a mishap.
You can also compare car insurance policies online simply by visiting insurers’ websites. By using a car insurance calculator, you can compare plans from top insurers for your new or used car. It has really become effortless to get an insurance policy as per your budget and needs.