Make a Smart Choice by Comparing Car Insurance Policy
Online Compare Car Insurance to buy the best and most suitable Insurance for Car at Renewal time.
- Compare Car Insurance Renewal is a must to secure against any financial losses due to accident or theft of the car
- There are two types of covers: Comprehensive Policy and Third party car Insurance
- There are Add on covers available like zero depreciation, no claim bonus protection, return to invoice, consumables cover and roadside assistance for Car Insurance in India
- It is essential to understand the factors that affect the car insurance calculator
- It is important to compare car insurance to be able to buy the right car policy
Why Buy Car Insurance?
Even if you are a fantastic driver, you will need car insurance. Third party liability car insurance is mandatory in India and it is illegal to drive a car without one. You should ideally opt for a comprehensive car insurance policy to safeguard your interest. Car insurance is the best way to secure your car and yourself. Some reasons why you must have a car insurance:-
It is seen very often that you meet with an accident due to the fault of others which damages the car. Irrespective of the cause, car repair costs are rising exponentially and thus, having an insurance will cover you against these expenses.
Third Party Liability
In the event of an accident where you cause damage to a third-party life or property, third party liability insurance will help you in compensating for the same. This will protect you against legal consequences.
Your car insurance policy will cover you against any loss caused due to a natural disaster damaging your vehicle.
In the case of a theft, your car insurance policy will cover you against the loss.
Types of Covers:-
Generally, there are two types of car insurance coverage available in India:
Third Party Liability Coverage
This compensates for any loss caused due to damage to any third-party property or life. Though not the best thing to do, this coverage is for those people who take insurance as it is mandatory under the Motor Vehicles Law. Under this cover, no loss to the insured or the car is payable.
This insurance provides a better coverage to the third party and the insured. Third party liability cover is available under this and also any damage caused to the car in case of theft, accident, fire or a natural calamity is covered too. When opting for a comprehensive cover, the insured has the choice to opt for some add-on covers as well.
Add on Covers
Zero Depreciation Cover:
Under this cover, no depreciation is calculated at the time of a claim. This helps in saving money which would have to be paid by the insured on repair of cars.
No Claim Bonus Protection
With this cover, the insured can enjoy the discount he can get a no claim bonus on his policy even if he has filed a claim.
Return to Invoice
With this cover in the case of total loss, the full insured declared value is given to the insured.
This cover allows assistance in case of emergency causing the insured to be stranded. The cover provides various kinds of assistance like towing facility and taxi benefit in various situations.
Factors Affecting Premium
Registration City –
The premium is affected by the city where the car is registered. People owning cars in a metropolitan city have to pay more premium when compared to smaller towns. This is because the chances of thefts and accidents are higher in the former.
Model and Make
The make and model of a car and the risks that are associated with it affect the premium of car insurance. The older the car, the lower is the premium due to depreciation in value. Powerful and high-end cars attract a higher premium.
No Claim Bonus
If the insured has not made any claims in the policy year, he is eligible to get a discount at the time of renewal and this is called a no claim bonus.
The policy and the add-on covers determine the premium payable. The add-on covers make the policy more expensive.
Why Compare Car Insurance?
Comparing car insurance policies online from various companies is the best way to buy the right policy. The comparison is done on the basis of the insured declared value, add-on covers, discounts, deductibles and of course the premium besides some other parameters. The main advantages of comparing online are:
Many companies in the market offer car insurance but taking quotes from all is a difficult task. When comparing online, the insured can easily get all quotes sitting at home at the click of a mouse. When all quotes are available in one place, it makes it easier to compare and make the right choice.
When all policies are available for comparison, the insured can know the right price and best coverage available. The exclusions and deductibles on a policy can also vary from one insurer to the other, and with all details available at a single place, taking a decision becomes simpler.
When comparing online, the insured has the access to a lot of information which helps him understand the fine print of the policy. A comprehensive understanding of the product comes in very handy at the time of a claim.
No Hidden Clauses
When comparing and buying the policy online, there is complete transparency. The insured has all details available and has access to reviews as well to make an informed choice.
Important Factors to Note-
Insured Declared Value:
Having a low IDV can lower the premium but will reduce the coverage. Thus, an optimum IDV is ideal which is closer to the market value of the car.
No Claim Bonus
NCB means a discount on the premium. To avail the discount, a wrong NCB should not be given as this can lead to claim rejection.
Things To Consider When Comparing
When comparing insurance online one of the main factors to consider is the premium. But a policy with the lowest premium is not always the best as this might result in a less coverage. Check out the below factors too:
You should not opt for a high excess as this is the amount you will need to spend at the time of a claim. A low excess might increase the premium. When comparing a policy, it is important to look at the voluntary excess.
With a standard car insurance policy, there are many riders available. When comparing policies, the covers offered by each company along with the impact it has on premium must be compared.
The network of garages for each company where a cashless facility can be availed should be another important criterion. A cashless claim settlement is easier in most cases than taking a reimbursement later.
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