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When we buy car insurance, we pay an insurance premium in hope that we never get to file any claim. In case of filing a claim, we expect our insurance provider to fulfill its promise since our best interest lies in that. The insurance providers are inclined towards safeguarding their own best interest. That’s why insurance providers are tightly lipped about their claim process.
At the time of purchasing auto insurance, compare auto insurance policies. It will help you to purchase an insurance plan with adequate insurance coverage for your automobiles along with the third-party damages and liabilities. Make a mental note that purchasing a cheap comprehensive vehicle insurance plan or a third-party insurance plan isn’t going to help you at all.
You will pay a lesser insurance premium and be happy about it. You will get a plan that won’t be of any help in the case when you need it the most. At the time of checking various motor insurance plans, pay close attention to the credibility of the insurance provider.
In this article, we will tell you things your auto insurance providers wouldn’t tell you.
Insurance providers can save a lot of Money by Having Your Vehicle Declared a Total Loss
After a road mishap, serious damage(s) can be caused to your automobile. In that case, you might think that it is in your best interest if you have your vehicle declared a total loss. You might get a new vehicle, but it can backfire.
In case your automobile is totally damaged, you might recover lesser than your automobile’s worth. It would cost lesser than what it would cost you to purchase a new vehicle.
Having your automobile declared a total loss could be in the best interest of your insurance provider. It might cost a little less for the insurance company to declare your vehicle a total loss instead of approving all of the necessary repairs. Since it’s better for insurers to declare your vehicle a total loss, they go for it.
Dealer vs. Broker vs. Agent vs. Web Aggregators
As you know, there are various ways to buy an automobile insurance plan. You can purchase it from an insurance agent, directly from the insurance provider, your vehicle dealer, or even from the brokers.
Make sure they have are a member of Insurance Regulatory and Development Authority and they have a valid registration number. It speaks volumes about their authenticity.
Here are a couple of pointers that will be of great help in order to differentiate at the time of buying a vehicle insurance plan.
Dealers- Basically,dealers are the vehicle dealers from where you purchase your vehicles. In case you buy a brand new vehicle, your dealer would offer you plan at a comparatively lesser premium.
The point to keep in mind is that he/she is adjusting that discount on your vehicle payment. In that process, one ends up paying more than he/she should to the dealer. If you have to purchase a vehicle insurance plan for yourself online, high chances are high that you might end up saving plenty of money.
Brokers- Car insurance brokers have the IRDA license and they aren’t affiliated with a single company. They are associated with the various company and they can provide you various quotes from all those companies.
Since a broker does not represent any insurance company, he/she represents you as his/her the client in the court of law.
Agents- Car insurance agents are the representative of car insurance companies. A company employs them so you can always get in touch with them.
They represent only 1 insurance company. They are not in a position to offer you policies from other companies. It means that you might end up missing out on a great plan just because the company an agent represents is not offering that plan. An agent has no power to represent you in the court of law.
Web Aggregators- A web aggregator allows you to not just check out various insurance plans but it gives you a platform to compare various plans so that you can select the one that suits you and fulfills your insurance expectations.
How to Decide if Insurance Company is Good Enough?
When you buy car insurance online, you fill in your requirement and you are redirected to a list of car insurance quotes. Now the big question is- how to decide which insurance provider is competent.
We have compiled a list that will help you to select the best insurance plan for you. Have a look:
1. Coverage vs. Premium-Don’t make the grave mistake of going for an insurance plan only because it comes with a lower premium as compared to other insurance plans. It is recommended to go through the various plans and then pick a plan best that gives you maximum insurance coverage at minimum insurance premium. By this way, you’ll get best of both the worlds.
2. No Claim Bonus-It is the bonus that you get at the time of renewal after a claim less year. Generally, this is a reward that is deducted in the form of a discount from your premium.
The No Claim Bonus gets accumulated that’s why you get discount up to 50 percent. In case you purchase a new car or switch your insurance provider, you can get you No Claim Bonus transferred to your policy. Make sure you get your NCB transferred at the time of porting to a new insurance provider.
3. Deductibles-Every insurance company formulates insurance plans with a different structure. This difference is reflected in the discount offered for deductibles. Deductibles are of two types.
- Voluntary Deductibles – It is mandatory.
- Involuntary Deductibles- It is optional.
At the time of registering a claim, if you don’t wish to pay a hefty amount of money from your pockets; you can pay a pre-decided amount of involuntary deductibles so that it doesn’t burn a hole in your pocket.
4. Cashless Network of Garages- Every insurance provider has a tie-up with various garages that are known as network listed garage of a particular insurance provider. It offers cashless service for an insured car. Go for the insurance company that has a wide range of the cashless garage as you will get more options to choose from.
5. Additional Coverage- Therefew insurance providers that offer a broad range of add-ons that enhance your basic insurance coverage. Some of the most-popular additional covers are the following.
- Zero Depreciation
- NCB Protection
- Invoice Cover
Select an insurance company that offers you the best add-ons so that you can enhance your insurance coverage when you want.
Tips to Keep in Mind While Selecting a Car Insurance Provider
Here are some of the tips that will be helpful for you while selecting a car insurance provider.
The Financial Standing and Reputation
Imagine your have top five premium quotes from top five car insurance providers and you are having a hard time to decide which one to pick. In that case, search for the insurance provider’s financial standing and reputation.
- First and foremost, check the authenticity of your preferred insurance provider. You can start by checking the IRDA registration number of the company by simply logging on to the IRDA’s If insurance provider is registered with the IRDA, it means that the insurance company is legitimate.
- The next thing to check is insurance company’s fiscal standing. It’ll give you an insight into the insurance company’s capability of settling down your claims. All it takes it a Google search.
- The most important thing to consider is the insurance company’s claim rejection ratio. Claim Rejection Ratio is the ratio of the claims rejected in ratio with the settled claims.
The lower claim ratio means opting for the particular insurance company is a good thing. You are a Google search away from finding out the Claim Rejection Ratio of your preferred insurance company.
Mandatory Timely Checks
It is recommended to evaluate your vehicle insurance plan at timely intervals. The perfect time to evaluate your vehicle insurance plan is when your vehicle insurance plan expires or its due date is close to renewal.
Analyze if your current insurance provider has offered you a fabulous customer care or not. You can assess it by the way the company has treated your claims.
It’s a good idea evaluate if your insurance cover is adequate for your insurance needs. In case you have purchased a new automobile, it's an excellent idea to upgrade your coverage or switch to a new insurance plan.
Evaluate your insurance premiums and check if it’s still cost-effective and offering you the possibly best coverage. In case you need additional coverage, give a thought about opting for additional coverage.
At the time of purchasing a new insurance plan, ensure that you compare various motor plans. If a basic insurance plan isn’t fulfilling your insurance expectations, you can always opt for additional coverage by paying a nominal premium.
Offline modes of buying auto insurance are outdated. The best way to buy a car insurance plan is online.
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