New Delhi (India), August 21: Looking for car insurance quotes can often be confusing. With so many options available, you may find it a little onerous to pick one. While the Motor Vehicle Act 1988 makes it mandatory for every motorised vehicle to have a minimum of third-party liability coverage, you might want to look at getting additional coverage for your beloved car. This is where you may feel bemused, as when you choose comprehensive insurance, the prices will vary across car insurance providers.
How to Compare Car Insurance Prices like a Pro
While on the lookout for the right policy, a comparison of car insurance prices is essential if you want the best deal. However, the best deal doesn’t always mean the cheapest plan. You need to keep several factors in mind that can help you pick a plan that suits not only your car but also your pocket. Let us take a look at some easy tips and tricks that can help you understand how to compare car insurance prices like a pro:
Understand What You Need
The very first step has to be self-assessment of your vehicle's needs. There are three types of vehicle insurance policies available: third-party liability, standalone own damage, and comprehensive policy.
While third-party is mandatory, it only covers damages incurred by a third-party person or property due to the insured vehicle.
If you already have a third-party liability and want a cover for your own vehicle as well, you may purchase a standalone own damage.
A comprehensive car insurance policy is ideal if you are looking for all-around coverage for your vehicle under one single policy.
Factor in Your Car’s Age and Usage
While planning an insurance policy for your car, you must also take into consideration the age and usage of your vehicle. Let's see the various situations:
If you have recently purchased a car, a comprehensive car insurance policy with a zero depreciation add-on is best suggested.
If you rarely take out your vehicle, third-party insurance can suffice as it keeps you off the legal penalties
If your vehicle is more than 5 to 7 years old, a standalone cover may be sufficient.
Review the Car’s IDV
After you are done shortlisting a few car insurance policies, make sure to check the IDV that your insurer is offering. IDV stands for Insured Declared Value. It is the highest amount that your insurer will pay in case your car is lost or suffers complete loss. In such a case, the recovery of the vehicle is impossible and hence, to compensate for the loss, the insurer pays the IDV amount. Make sure to pick a plan with an accurate IDV.
Look Out for Different Plans
Once you have invested in a car insurance policy, you may have to continue with it until the tenure of the plan. So, it is very important to pick the right one. For this, you must shortlist the available plans based on your preferences, and the benefits and features offered by the insurer.
Choose Add-Ons Wisely
Depending on the chosen car insurance, you are eligible for various add-ons. Add-ons or riders are the additional benefits that you purchase for your car by paying an extra premium. So, make sure you only pay for what your vehicle actually needs.
Opt for a Multi-Year Policy
You can purchase car insurance for one year or multi-year. In totality, a multi-year plan will have a lower premium as compared to a single-year plan. You need to pay the premium for 2-3 years at once, so it may sound hefty. However, depending on the insurer, you may get the option to pay a multi-year premium on EMI, thus reducing the burden of one-time premium payments.
Understand the Company’s Claim Process
The aim behind purchasing car insurance is to raise a claim in times of need and avail of financial aid. So, you must be aware of the claim process, the required documents, and how to raise a claim. If you do not understand any term or step, make sure to ask the executive.
Read the Policy Document Carefully
Policy documents look wordy and are lengthy, and you may not want to read each and every detail. However, this is one step that you must not skip. Only after reading the fine print will you be fully aware of the coverage offered by the plan, various terms and conditions, and the claim process. Along with the inclusions, being aware of exclusions is equally important so that you know the conditions that are not covered in a car insurance policy.
Conclusion
Shopping around for car insurance quotes is indeed time-consuming, but the returns will be worth it. You need to keep in mind that while a cheap car insurance policy might look attractive, it might not offer you the best coverage. When comparing car insurance prices, an equal emphasis has to be paid on the inclusions and exclusions as well. Keeping the above tips in mind will surely help you when comparing car insurance prices.
