Car Insurance Comparison

About car insurance comparison

Comparing car insurance is a necessary step before you pay for the deal. Thanks to various aggregators who offer insurance information online, users can easily compare car insurance policies. When you buy car insurance online the documentation is simple and multiple comparison options are available in a single tab for you to make the best purchase.

However, it is difficult to always get the best results from car insurance comparisons. The reason for this is simple. Most companies advertise their insurance as the best product with loads of added perks. Hence, it is very confusing to pick one from the list. Also, what constitutes the best deal differs depending on the country or type of vehicle you are opting for.

To compare car insurance, it is important to understand which aspects need to be compared. Here are a few golden rules to remember when it comes to car insurance comparison:

The car insurance should have third party cover for life and property. Hence, any third party who incurs loss because of an accident caused by your vehicle, the car insurance company will bear the expenses. Some policies offer medical coverage as a separate aspect of the insurance package. Medical coverage pays predominantly for the cost of treatment of injuries and compensation for lost wages, if opted as a part of add on cover.

Always check the grievances settled. "Car insurance comparison will be a useful activity only if you include this factor. If the company has a better history of settled grievances, then use their services. "

Lesser insurance premium does not guarantee competitiveness. The insurance that costs less is not always the best insurance. Check for the services it provides and whether the higher price is a suitable trade-off for the benefits it provides.

Benefits of car insurance

There are many benefits of car insurance which is why it is a mandatory aspect of buying a car.

• Protection against loss or damage:
  A car insurance protects against any loss or damage caused to the insured vehicle. Coverage against any loss or damage caused by accidents, fire theft, self-ignition, explosion, lightning, riots, terrorist activities, or natural calamities. Since we are prone to any of these over the course of our lifetime, a cover will help you swim through such challenging times.
  Coverage to family members in the event of a death in the family: If the member who died is the sole earning member of the family, then the other members can benefit from the insurance coverage. The insurance coverage will provide for legal fees, other lawsuits, etc.


• Additional cover: Getting car insurance also comes with its share of perks. Zero depreciation, roadside assistance, return to invoice, engine protection, consumables cover can also be added to a comprehensive insurance.
  A car insurance policy would also provide cover if an accident occurs. Personal accident benefit up to ₹15 lakh would be given to the owner-driver of the car, if the same has been opted for.
  For a limited car insurance premium paid over a period of time, your family will get a big corpus in the event of an accident.


• No Claim Bonus If you don’t make claims during the policy period, you can avail the no claim bonus while renewing your car insurance policy.

How to compare car insurance policies?

How to compare car insurance policies is a question that pops up in every car owner's mind. After all, every company will claim that their car insurance policy is the best. But car insurance can easily be compared, thanks to car insurance comparison websites.

Getting the right insurance depends on a range of factors like the insurance premiums, the make and model of your car, the money you are willing to spend on an insurance package and more.

Let us check out some of the factors to keep in mind to compare car insurance:

• Price - One may prefer purchasing a car insurance policy whose insurance premium is the cheapest. However, you may also have to check out the features of the policy which are being made available for that price. You must choose a policy which is not only easy on your wallet but also fulfills all your needs.
• Coverage and add ons - Apart from the basic coverage, also consider the various add-ons such as zero depreciation, engine protection etc. For this, you may wish to consider your driving habits as well as the city you are from. For example, if your city gets flooded during the monsoons, an engine protection cover would be critical.
• Reviews by customers - While browsing for insurance online, you can even check written and video reviews left by customers on various portals. Apart from online reviews, you could interact with car owners in your network to seek genuine advice. You must especially interact with those who have filed claims.
  
• Evaluating each of these factors will provide you with an insurance product that is competitive and at the same time ensures sufficient coverage.

How to choose a car insurance?

In this section, we will give you a list of things you can put a tick mark on when you go shopping for a car insurance policy.

• Select the correct form of cover: Car insurance cover is mainly divided into two parts- third party and comprehensive insurance cover. A third-party cover, as the insurance name suggests, offers compensation for third parties. Whereas comprehensive, as the name suggests, covers the third party (TP) & own damage (OD).
• Look for discounts: Car insurance offers many types of discounts and deals from time to time, whether it is the insurance premium or a host of benefits that come with the insurance package. Look for the best discounts which will save cost significantly.
• Check your insurance score: Make sure you have the math done right on the car insurance policy. There are many calculations you need to do in order to arrive at the optimal price based on your requirements and needs.
• Check the claims process: Companies that have a better claim record do tend to have better processes and systems and more efficient employees. Hence choose a company that has a good claim settlement ratio.
  This is because the money should be available when you need it. There is no point in buying an insurance cover if you don’t get the money when you need it.
• Check the renewal process: Check the renewal process. If the renewal process is cumbersome and does not come across easily then the insurance will not be worth it. It is important that the renewal process is as efficient as getting the car insurance.
• Check for the right deductible :A good insurance cover usually has the right balance between the insurance premium and the deductible. There are two types of deductibles in car insurance - Compulsory deductible and voluntary deductible. Hence, it is essential to choose the right cover based on the deductible and the insurance premium.
  Every insurance provider gives a discount when it comes to the damage component of your car policy. Discounts vary from insurer to insurer for your car. Hence it is important to understand the discounts against the total cost of the insurance. The total cost of insurance against the benefits need to be weighed.
  Check with everybody around you what insurance they have purchased and whether it has worked for them. Also check the customer reviews to find out which car insurance is making the cut.
• Check the add-ons : Every insurance product also comes with its share of add-ons. There is zero depreciation, engine protection and much more. Check with your insurance provider as to what are the add-ons that you will get.
• Do an annual check: Compare various car insurance packages. Check rates from other insurance companies from time to time to make sure you are getting the best deal.

What is covered under car insurance?

Car insurance covers all types of expenses including medical expenditure, legal fees and repairs needed for the damages to the car. It can include damages to third party property, injury of passengers in your car or to yourself.

The main components of car insurance include auto liability coverage, uninsured and underinsured motorist coverage, comprehensive coverage, collision coverage, medical payments coverage and personal injury protection.

• Liability coverage: Injuries caused to a third party will be reimbursed if you or your vehicle caused the accident.
• Property damage Liability: Any damage to a third party property will be covered while driving.
• Uninsured and underinsured motorist coverage: Driving without insurance is a crime punishable by law. Despite the clause, if you are hit by an uninsured vehicle, it will not help pay your medical bills or even repair the vehicle. Also, if you are hit by an underinsured motor vehicle, then the medical costs will not be borne by the other party. In such cases, having uninsured and underinsured motor coverage will help.

Types of car insurance

There are mainly two types of insurance provided in India.

1. Third party car insurance policy: This includes damage caused to your car and to the third party's property. Plus, the injury caused to you and your fellow passengers. It will cover the cost of damage to the car, the damage to fellow passengers, and also to the driver. In short, any damage that arises out of a collision will be covered by a third-party insurance.

2. Comprehensive car insurance policy: Comprehensive car insurance helps covering your car against theft, fire, natural disasters like earthquakes, flood, snow, vandalism, as well as damage caused by animals, riots, terrorist attacks, etc.

Comprehensive insurance has a certain feature called deductible.

If your vehicle gets damaged, then you would have to pay an amount towards the repairs before your car insurance covers the remaining. The component paid from your pocket is known as a deductible. There are two types of deductible: Voluntary and Compulsory

Voluntary deductible: In this case, the policyholder determines a limit upto which the policyholder would pay before claiming the remaining from the insurer. A higher limit (or amount) would mean a lower premium. The limit (or amount) is chosen by the policyholder on the basis of risk appetite and affordability.

Compulsory deductible: The compulsory deductible limit (amount) is fixed by the insurance regulatory body, IRDAI. It has to be mandatorily paid by the policyholder in case of a claim. The amount is ₹1000 for four wheelers with a cubic capacity of 1500 cc or less and ₹2000 if cubic capacity is more than 1500 cc. In certain cases (if the car is older or has a higher cubic capacity etc), the insurer may charge higher.

You can add other benefits to a comprehensive car insurance plan like accessories cover, engine protector, zero depreciation cover, medical expenses, etc.

Apart from considering the types of car insurance policies while conducting car insurance comparison, one has to look at some more aspects.

Things to consider before doing a car comparison

Determine your budget. Sit down and account for monthly EMIs, insurance premiums, repairs, and other expenses that might come along. The dream of zooming on the highways can get you caught in choosing the right shade for your car, but looking at what you can and will afford is the most important part of buying anything, including a car.

• Have a good credit score: Make sure your credit score is in good shape. A lot of car purchases depend upon the credit scores. Whether your auto loan will be sanctioned or whether the insurance package you have eyed for a while will be yours, all depends on your credit score.
• Look at the journey of a car brand since its launch: It also makes sense to read about how an automobile brand has performed over the years, its network of dealerships and the market response to the models launched by the manufacturer. This will throw substantial light on how the manufacturer and the variants launched by it have been faring in recent times.
• Read and watch the reviews: Apart from reading extensively about customer reviews and watching review videos, it is also a good idea to speak to car owners in your network who own the car brand that you wish to purchase.
• Know your rights: Whether it is your insurance policy or warranty schemes, you should know what you are entitled to.
• Test drive potential purchases: Test drive whichever car you want to buy. Because unless you test drive, you won’t know whether you are comfortable sitting in and driving the car.
• Find the repair records: If you are buying a second hand car, repair records should be checked as it reflects the true history of the car