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Here's Why the Cheapest Car Insurance Quote May Not be the Best

By Finserv MARKETS - Jul 27,2019
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Car Insurance Quotes

With the influx of e-commerce portals and the dizzying array of discounts they offer to lure in more customers, most of us have turned into bargain hunters who browse for the same product across multiple apps/websites, before finally settling to purchase it from the vendor that offers it to us at the lowest price. While this purchase strategy might work for a lot of products that we purchase online, it might not be the best way to go about purchasing your insurance plan; and especially your car insurance plan!

Since many insurers now function online in a bid to bring greater transparency as well as ease in applying for insurance along with settling claims, you must be extremely vigilant while understanding the terms of what you are signing up for while choosing your car insurance plan. Many online insurance quotes may look cheap, but there may be a plethora of reasons as to why they are able to provide you with a cheaper plan; and not all of those reasons may prove beneficial for your purposes. For instance, the Bajaj Allianz car insurance, can be yours for a reasonable sum of Rs. 3127 a year; but it provides a host of benefits including settling your claims online that you might not be able to avail from a cheaper insurance quote.

A cheap insurance plan may cost you in terms of benefits

Since the industry’s inception, insurers have stuck true to the sentiment that one will get only what one pays for. As a result, a cheap car insurance may not cover many, or even most, of the things you would want to be covered by the policy. A car insurance policy should offer personal accident coverage for not just you (the driver), but also your co-passenger. However, if you settle for a cheap insurance, you may not be privy to such extensive coverage. Before you settle for an insurance policy, make sure to check which benefits you are getting through the policy and do not select price as the deciding factor. Imagine opting for a cheap policy now and later finding out that even the basic accidental cover is not included. Not only will you end up paying a lot more for fixing the damage, but the money you did spend on your insurance premium would essentially be wasted.

A cheap car policy may cover only basic legal requirements

Online car insurance quotes may mention in big fonts about all the manifold benefits they offer, but it is up to you to be perceptive and understand whether they only offer what is legally mandated by the laws of the country, or whether they offer enough benefits to actually count as an ally when you hit a bump on the road, literally! For instance, third party insurance is a legal requirement that every insurance policy has to comply with. Do a little research of your own, learn what top insurers are offering and do a proper cost-benefit analysis before you settle on a plan. You need to know which benefits are available with a car insurance policy, and you need to decide for yourself as to which of those are essential for you to have. While the cheapest car policy may provide only the basic coverage that is mandated by law, paying just a little bit more can ensure that you and your vehicle are taken care of when the need arises.

Cashless Claims

An increasingly competitive marketplace ensures innovation, and the insurance industry is no exception. The best insurers will offer benefits like cashless claims. This will ensure that if your car does meet with an accident, you can take it to a network garage of your insurer company and get it repaired without paying a single rupee out of your pocket. With a cheaper insurance policy, chances are that you’ll end up paying for repairs out of your own pocket.

Along with cashless claims, it is advisable to opt for roadside assistance. With these two features, you can rest assured that no matter where you are when an unforeseen event takes place, the insurer will ensure that your car is towed to the nearest garage within its expansive network, and that you don’t have to worry about its repairs. The Bajaj Allianz car insurance policy, available on Finserv MARKETS, offers you 24×7 car roadside assistance in India, ensuring that aid will come when you require it the most, no matter what time of the day or night it is. It also has more than 4000 garages listed under its network.

A cheaper car insurance policy now may result in higher deductibles later

Deductibles refer to the amount that the policyholder has to pay, in case of accidents and other unforeseen incidents. A car policy could be cheaper because the deductibles are higher. Basically, the money you save by opting for a cheaper policy will flow out of your pocket anyway owing to the high amount of deductibles you end up paying.

Now that you know the perils associated with opting for the cheapest car policy, make sure to spend more time studying what insurers are offering regardless of its cost. Insurance is essentially a cushion against risks, and it must be equipped enough to shoulder any and all unforeseen accidents. Check out the car insurance plans, available on Finserv MARKETS, to understand the online insurance quotes available to you and make the best decision tailored specifically to your needs.

To know more on Car Insurance and related topics in depth, you can check out these blogs:

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522