How to Compare Different Types of Car Insurance Policies?

Buying car insurance is not just choosing a policy with the lowest premium amount. It also involves knowing the policy features, benefits, and insurer's reliability in claim settlement. This guide explains how to compare different types of car insurance policies in India and choose a plan that best matches your requirements.

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Key Factors to Consider When Comparing Car Insurance

You should keep in mind these points when you compare car insurance for your four-wheeler:

• Coverage Level: The most important point while choosing a car insurance policy is checking the scope of coverage offered. While a third-party liability plan is the minimum requirement, choosing a comprehensive policy will ensure broader coverage for your vehicle.
• Policy Premium and IDV: Consider how the premium of your car insurance policy relates to the vehicle's IDV, which is the current market value of a car. While choosing a lower IDV reduces the premium price, it also results in a lower claim amount.
• Claim Settlement Ratio (CSR): A greater CSR implies that the insurer's higher reliability and efficiency in settling claims.
• Network Garages: Make sure that the insurance company you choose has a wide network of cashless garages for hassle-free repairs.
• Add-on Covers: Review additional covers offered by the insurer for enhanced protection of you and your vehicle.
• Exclusions & Deductibles: Know what is excluded from the policy and the deductible amounts you need to pay at the time of claim.

Some Tips for Car Insurance Comparison

When it comes to comparing different car insurance policies for your four-wheeler, following these useful tips can be helpful:

• For new & high-end cars, comprehensive car insurance with zero depreciation and return-to-invoice add-on covers ensures exhaustive protection.
• If you reside in flood-prone or accident-prone areas, engine protection and roadside assistance add-ons are recommended.
• Carefully choose voluntary & compulsory deductibles. While a higher deductible might reduce the insurance premium, it could increase your out-of-pocket expenses.
• Verify the insurer's reputation, claim process, and customer service & support before making a final decision regarding the type of car insurance you choose.

What is Covered Under Car Insurance Policies?

Here are the inclusions under a comprehensive car insurance policy:

1. Damages due to road accidents, theft, fire, and terrorist acts.
2. Coverage for natural disasters, such as floods, storms, cyclones, earthquakes, etc.
3. Third party liability cover for death, injury, or property damage.
4. Personal accident coverage for the driver/owner.
5. No Claim Bonus benefits, which is a discounted car insurance premium for each claim-free year up to 5 years.
6. Cashless repairs in the authorised network garages of the insurer.
7. You can customise your policy with add ons in car insurance to get enhanced coverage

What is Excluded from Car Insurance Policies?

Below are some exclusions under a car insurance policy:

1. Usual ageing and wear & tear of the insured vehicle.
2. Any damage when driving under the influence of alcohol or drugs.
3. Mechanical or electrical breakdown of the car.
4. Damages caused while driving without a valid driving licence.
5. Any consequential loss to the insured vehicle.
6. Any loss or damage due to war or nuclear risks.

Step-by-Step Process to Compare and Buy Car Insurance

Here is the simple process to comparing and securing a four-wheeler insurance policy for your car:

• First, know your car insurance coverage requirements according to your vehicle's age, usage, and market value.
• Visit Policybazaar.com and choose 'Car Insurance' to compare quotes online from multiple insurers.
• Select a plan with a right balance between affordability and coverage.
• Evaluate policy features, benefits, premium, add-ons, and the claim process of the insurer.
• Go through policy terms & conditions to understand scope of coverage and exclusions.
• Opt for any add ons (if necessary) under your own damage or comprehensive plan.
• Lastly, pay the premium amount online and instantly receive your car insurance policy via email.

Final Words

An informed comparison of car insurance policies can help vehicle owners choose the right balance between protection and premium amount. While third-party car insurance works for older vehicles, new or expensive cars benefit more from a comprehensive plan. Thus, before buying car insurance, you should thoroughly review the claim settlement process and the network garages of an insurance company. It will ensure complete financial protection and peace of mind.