Besides the legal implications, it is also essential for you to consider the importance of having an insurance policy on your vehicle. Accidents might happen to anyone and can cause significant damage to you, your car, and any third party. A substantial loss can even wipe out your savings if you do not have insurance. Hence, buying an automobile insurance policy and renewing it every year is mandatory to be legally eligible to drive a car.
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 correct car insurance help, you can even avail of 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. However, there are also a few points that you should keep in mind while purchasing 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 you can ask to choose the best car insurance policy.
1. 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. The quantum of coverage you get in all the policies will vary from the comprehensive approach. Some policies, such as third-party car insurance, cover many significant points, while others can be enhanced through add-on covers. Hence, it would help if you compared the various coverage options. The ideal policy would provide multiple benefits at the best cost.
2. 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 payable to the policyholder and reflects the cost of the premium. The depreciation rate depends on your car’s age, which means the older the vehicle, the higher the depreciation and the 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 the city of registration, among a few other things.
3. Insurers’ claim settlement practices need to be compared.
Everyone would want a policy that has an easy, streamlined claim process when it comes to claiming insurance. 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 your chances of compensation in case of a mishap.
You can compare car insurance policies online simply by visiting insurers’ websites. Using a car insurance calculator, you can compare plans from top insurers for your new or used car. Getting an insurance policy per your budget and needs has become effortless.
