There was a time when people mostly relied on their car dealer to renew their car insurance every year. Very few people knew how to compare insurance quotes and those who did compare, were mostly agents and brokers. A car owner had no option but to trust the car dealer and take whatever policy was available to him at whatever be the cost.
All that changed once the Insurance Regulatory and Development Authority of India (IRDAI) allowed insurance web aggregators to help consumers with insurance quote comparison through their websites. Today, there are 27 insurance web aggregators operating in India, according to the IRDAI website, and customers are able to get the best deals by comparing online car insurance quotes.
Below we explore five important factors and parameters that you should consider when comparing car insurance quotes. Going by just a single factor may turn out to be a costly mistake, so keep these points in mind while searching for online quotes.
Cost shouldn’t be a deciding factor:
If you consider buying car insurance as a formality, you will end up buying something very cheap just to get over with it. That’s a bad idea. Insurance is not just something that you buy to comply with the law; it’s both health and life insurance for your car. Even third party liability insurance will do if you just want to stay away from the traffic fines. However, a Third-party insurance will not cover the damage to your car in case of accidents. Even low-cost comprehensive car insurance may not provide you adequate protection to cover the cost of damage to your car. Keep this in mind when you compare car insurance quotes.
Use at least 5 web aggregators:
It may seem like extra work pulling out quotes from different websites but it’s really worth the effort. Not all online car insurance quote comparison websites feature the same depth and variety of insurers and yes the quotes are not always the same. For instance, ABC website may quote lesser than XYZ on the same insurer or may provide a better deal for your car than the other. While looking for online car insurance quotes, ensure that you are visiting an IRDAI-licensed insurance web aggregator. For more details, you can check the IRDAI list of approved insurance web aggregators.
Use IDV wisely:
Insured declared value (IDV) quoted by the insurer is the current market value of your car. Your car insurance premium is directly proportional to the car’s IDV. However, declaring a low IDV to bring down the insurance premium is not a good idea, unless your car is very old. Learn how to compare insurance quotes based on various IDVs when you renew your insurance. When you are being quoted a low insurance premium by an insurer, it’s very likely that they have kept the IDV lower.
IDV amount also becomes important in case of car theft because the claim settlement amount is equal to the IDV of the car. In case of an accident, if more than 75% of the car is damaged, the claim settlement amount may also be equal to the IDV of the car.
A large network of cashless garages:
While comparing online car insurance quotes select an insurance company with a large network of cashless garages. It will ensure that you don’t have to travel a long distance or have to pay upfront at an out-of-network garage in case of car damage.
You should look for an insurance provider with a large network of cashless garages such as Bajaj Allianz car insurance available on Finserv MARKETS. With this policy you can enjoy cashless services across 4000+ garages across the country. In case cashless facility isn’t available in any garage you visit, you still get 75% of the amount credited directly to your bank account.
Buy add-ons and personal accident cover:
In today’s unpredictable day and age, just a comprehensive insurance coverage may not be enough. Even though you may have life insurance cover, it’s important that you buy personal accident cover against permanent disability or death for additional financial support to your dependents. Apart from PA cover, you can buy a lock and key replacement coverage and an engine protector cover as add-ons with your car insurance.
If you want maximum coverage during any damage to your car always, you can go for zero depreciation car insurance. With zero depreciation, your IDV remains the same as last year and your insurer gives you the maximum amount of money during claims settlement. Don’t decrease your IDV to lower your premium costs, rather opt for voluntary deductibles. When you opt for voluntary deductibles, you are basically agreeing to share a portion of the cost of repair in exchange for lower premiums. These are the few things, you should know about how to compare car insurance quotes online the right way.
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