Here are 10 things you need to consider when comparing an auto insurance policy online
Under the Motor Vehicle Act 1988, having an automobile insurance policy is mandatory for every car that is driven on the road. When you purchase four-wheel vehicle insurance, it not only forces you to follow the law, but also provides you with many benefits. Buying auto insurance online is a simple and easy process, however, before purchasing auto insurance, you might have a hard time choosing the right plan. If you are considering buying a car, consider these 10 points when you compare auto insurance policies online:
1. Understand the types of auto insurance policies
The first thing to consider when you compare auto insurance online is the type of auto insurance policies that are available. You should know that :
- Automobile liability insurance
Covers damage that your vehicle causes to a third party or to property. Your own damages are not covered
- Comprehensive auto insurance
Also called fixed-price car insurance, here civil liability as well as your own damages are covered
- Auto insurance for personal damage
If you already have liability insurance and want to extend coverage, you can opt for a stand-alone policy.
- Custom car insurance
When you don’t use your car too often, you can take out this kind of policy, where you buy insurance based on the number of kilometers you drive in a year.
2. Assess your needs
Once you know the types of policies available in the market, you can define your needs and then purchase a policy that is right for you, your car, and your budget. While this is only the liability insurance that a vehicle is required to have, by law an all-risk policy gives you much more coverage.
3. Know the company
When buying an auto insurance policy, be sure to research how the business works. It is important to read reviews and testimonials about the company, which are available online. Try to choose a company that has a good reputation with its customers.
Advice: After comparing auto insurance online, you can visit the websites of the shortlisted companies and find out about their backgrounds and procedures.
4. What is covered and what is not?
While it may seem like most companies offer similar coverage, it’s important to read the fine print and understand the inclusions and exclusions before making the final decision. So, when you compare auto insurance, try to understand in detail how the plan works to avoid heartburn later.
Advice: If you don’t think you are able to understand the policy documents, speak with a customer service manager or insurance agent to find out the details of the plan.
5. Complementary modules
With a comprehensive policy, you have the option of further improving coverage by opting for additional guarantees. While adding an add-on will increase the premium, it would benefit you in the long run.
Advice: Once you have compared the prices offered by different insurers on PayBima, choose the rider / add-on you really need, from the company that offers you the best deal.
6. Networked garages
In a network garage, the company pays your repair bills directly with the garage. Most of the time, the claims settlement process at a network garage is quick and convenient, and requires minimal paperwork.
Remember: Cashless repair at a network garage doesn’t mean you don’t have to pay anything out of pocket. Although this is mostly a small amount, you have to pay the uncovered expenses out of pocket.
7. Comparison of quotes
When buying online, comparing quotes is like a golden rule. To make the comparison easier and simpler, you can use an online car insurance calculator. This free online tool allows you to compare several fonts at the same time.
Remember: When comparing the prices of policies from 2 or more companies, be sure to compare the same coverage. Adding different add-ons wouldn’t give you an accurate estimate.
8. Claims settlement ratio
CSR, a company’s claims settlement ratio is published annually by the Indian Insurance Regulatory and Development Authority. This is the percentage of the number of complaints that have been settled out of the total number of complaints that have been raised.
Remember: Often times there are fraudulent claims or claims that are fulfilled without proper documentation, so be sure to take into account other important comments as well.
You may not be able to get a discount when opting for liability insurance, however, you can negotiate with your insurance company when purchasing an all perils policy.
10. Customer service
Customer service is the face of the business and it reflects the way the business treats its customers. Proactive, knowledgeable and courteous customer service should be favored.
There are many insurance companies that offer auto insurance, and while this competition can help you as a customer get a good deal, it can often get a bit confusing to choose the best policy for your vehicle. When you compare auto insurance policies online, keeping in mind the points mentioned above will help you make the right choice.
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