Essential Parameters To Compare Car Insurance Online

ESSENTIAL PARAMETERS TO COMPARE CAR INSURANCE ONLINE

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Buying a car is quite a huge milestone in India. But choosing the right car insurance policy for your car is even more crucial as it provides much needed financial security in case of an accident. With an increasing number of insurance providers and a wide variety of plans available online, finding the best policy that suits your needs can be both challenging and overwhelming.

We at Chola MS understand this. To make the process quicker, simpler, and more convenient for you, we have listed certain essential parameters that one should consider when comparing car insurance online which can help you make the right decision.

These tips will not only help you make the right decision but also ensure your car is well-protected.

1. Types of Coverage

Understanding the type of coverage you need is the first and foremost step in comparing car insurance policies. In India, there are mainly two types of car insurance coverage:

• Third-Party Liability Insurance: This is the most basic form of car insurance required by law. It covers damages caused to a third party (person or property) by your vehicle. However, it doesn’t cover any damage to your own vehicle.
• Comprehensive Insurance: This type of policy covers both third-party liabilities and damages to your own vehicle due to accidents, theft, natural disasters, and man-made calamities. It offers broader protection and is generally more expensive than third-party insurance.

2. Insured Declared Value (IDV)

Understanding the Insured Declared Value (IDV) is extremely crucial when choosing a car insurance online policy. IDV is basically the maximum amount your insurance company will pay if your car is stolen or completely damaged beyond repair. This value is based on your car’s current market price.

IDV is important because it directly affects your insurance premium, i.e., the higher the IDV, the higher your premium. When comparing different policies, make sure the IDV offered to you matches closely with your car’s actual market value. This ensures you get the right coverage without paying more than necessary for your insurance.

3. Premium Rates

When comparing car insurance policies, it is important to check the prices offered by different insurers. There are dedicated online calculators for car insurance online that help you get quick estimates of costs. Comparing premiums helps you find the best value without compromising on your coverage needs. Make sure you are getting the best deal for the coverage you want.

4. Add-On Covers

When buying car insurance online, consider add-on covers that are designed to enhance your car insurance policy by providing additional protection. Some of the most opted add-on covers are:

• Zero Depreciation Cover: Ensures that no depreciation is deducted from the claim amount when parts are replaced. It is particularly beneficial for new cars.
• Engine Protection Cover: Covers damages to the engine that are not covered under standard policies.
• Roadside Assistance Cover: Provides services like towing, fuel delivery, and minor repairs in case of a breakdown.
• Return to Invoice Cover: In case of total loss or theft, this cover ensures that the insurer pays the invoice value of the car instead of the depreciated value.
• Tyre Protection Cover: Tyre damages are not covered by comprehensive insurance. That is why a Tyre Protection Cover add-on can be added to cover tyre damages such as bursts, bulges, and cuts.

5. Customer Reviews and Ratings

Customer feedback plays a crucial role when comparing car insurance online. Reviews and ratings provide insights into the experiences of current policyholders regarding how claims are processed, the quality of customer service, and their overall satisfaction. Checking online reviews on insurance comparison websites and social media platforms helps you understand the reputation and reliability of different insurers.

6. Claim Settlement Ratio

The claim settlement ratio shows the percentage of claims that an insurance company successfully resolves out of the total claims it receives. A higher claim settlement ratio means that the insurer is reliable and efficient in dealing with claims. Choosing insurers with a high claim settlement ratio ensures smoother and more efficient claim processing for policyholders.

7. No Claim Bonus (NCB)

No Claim Bonus (NCB) is a discount provided by insurers to policyholders who do not file any claims during their policy term. It serves as a reward for safe driving practices and helps in reducing the cost of insurance premiums. Comparing NCB discounts offered by different insurers is a great way to pay less for your insurance throughout your policy.

8.  Policy Exclusions

When comparing policies, it is important to know what different policies cover and don't cover, including regular wear and tear, mechanical breakdowns, and damages resulting from illegal activities. Knowing these exclusions beforehand helps avoid sudden and unexpected financial losses during claims.

Conclusion

We hope you understood the importance of comparing different car insurance policies online, before you buy car insurance, through this blog. It is important to look at several parameters to get the best coverage at the right price. These include considering the type of coverage, how much the insurer will pay if your car is damaged (IDV), how much you will pay each month (premium rates), and any extra protections (add-ons). Also, check for discounts for safe driving (NCB), and how well the insurer handles claims (claim settlement ratio and customer reviews). Knowing what is covered and not covered (policy exclusions) and how easy it is to buy car insurance and renew your policy.

Remember, a good car insurance policy does not just provide financial protection, it gives you peace of mind while driving on Indian roads.

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