Factors To Consider When You Compare Car Insurance Online

Is online shopping even possible without comparing deals? The Internet has led to a shift in the shopping paradigm. No doubt that we compared even before the internet. But today, we can do it from the comfort of our couch and without having to practically interact with people.

Now that people have shifted to buying car insurance online, they have a huge scope of getting better deals than offline if they choose to invest some time in comparing. A car insurance policy is a contract between the policyholder and the insurance company that ensures coverage of damage in the event of unforeseen circumstances. People often think it is a risky business to buy car insurance online. But enough progress has been made and enough success stories have been written to prove that buying insurance online is as safe as a tortoise under its shell.

So, now that you know how safe online car insurance is, let’s introduce you to some important aspects of comparing them.

You are exposed to different deals

Why settle for the first auto insurance online quote when you have the scope of analysing as many as you want? Different deals mean different premium prices. You have enough options to pick the best one from among them.

It’s easy and free

All it takes is to open multiple tabs on your device to compare car insurance online. While you are comparing, you can choose to connect to the customer service and discuss your queries with the executives, without spending a single penny.

You can explore and learn

When you compare different car insurance policies, you will come across different benefits, rules, and regulations. This helps you learn the insurance jargon. So when you are checking out car insurance policies offered by different insurers at once, you will know what you are looking at and what these insurance companies are talking about.

Now that we have established that comparing car insurance online is a must, let’s look at the factors to consider when you compare them.

Policy Types

There are two types of policies available: first-party or comprehensive car insurance and third-party car insurance. The former is to compensate for the damage caused to the policyholder’s car, whereas the latter compensates damage caused by first-party to another person’s car, property, as well as physical injuries including death. According to Indian law, it is mandatory to get third-party car insurance.

Deductibles

Deductibles are the amount that you pay from your own pocket when you file a claim. These are specific amounts that are decided before you buy your car insurance. Once you pay your deductibles, the remaining amount of your claim is paid by your insurance company. There are compulsory deductibles and voluntary deductibles. Both of these are available only with comprehensive car insurance. The reason why you should compare deductibles is that in compulsory deductibles, the amount is decided by the insurance companies whereas, in voluntary deductibles, the amount is decided by you. The voluntary deductibles are inversely related to the premium amount. The higher the deductibles, the lower your premium amount. This could either be beneficial or cause you a loss when you file the claim. Hence, be considerate about choosing your voluntary deductibles.

Insured Declared Value

Your insured declared value (IDV) is the approximate amount that your car insurance company compensates you in case your car is damaged beyond repair or stolen. Different car insurance companies online have different IDV. To get the right amount, choose a figure that is close to the current market value of your car.

Claim Settlement Ratio

The claim settlement ratio indicates the number of claims approved and settled by the car insurance company in a given year. It tells you how genuine the car insurance company is when it comes to settling claims.

No-Claim bonus

No-Claim bonus is a discount given on own damage premium to policyholders during renewal for not having made any claim during the past year of insurance as per the provisions of Indian Motor Tariff

Prices and Coverages

When buying a policy, you should check the add-on coverage and other benefits offered by the car insurance company and compare them with others because they differ from one another. Not just that, but it also influences the final premium price of the policy.

Now, you are a pro when it comes to comparing car insurance online. Buying a car and taking care of it is a mammoth task. So, take some of the load off by conveniently buying your car insurance online.

For more information, visit the Kotak General Insurance website.

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