Why Compare Car Insurance Online?
Car insurance comparison can be done via two methods i.e. online and offline. An offline comparison can be a more cumbersome and time-consuming task.
However, comparing car insurance online is a very beneficial and hassle-free process. Here are some reasons why you should compare car insurance online. Take a look:
Ease of Comparison
Offline comparison can be tricky as it requires you to visit insurance companies or consult insurance agents. However, comparing motor insurance online is a very easy, time-saving process and can be done in the comfort of your home. You will only need a basic internet connection to compare and choose the best car insurance policy for your four-wheeler.
Lots of options
The motor laws of India make it compulsory for every car owner to have a car insurance policy for his/her four-wheeler. This compulsion has brought hundreds of insurance companies into the market offering different types of car insurance policies.
When you compare car insurance online, you can compare all these companies, their features, their worth, and premiums and decide on the one that suits your requirements.
When you compare and buy car insurance online, you can also avail many additional benefits offered by the insurance companies which is practically time-consuming when done offline.
Moreover, with the help of online comparison, you can also know in detail about the after-sales services offered by a particular insurance company.
No Hidden Fees
Most insurers charge a commission when you purchase a car insurance policy from them. However, when you compare and purchase car insurance from insurance brokers like Policybazaar.com, you save on these operational costs.
Comparing and purchasing car insurance online is a completely free process. All you need to do is pay the premium of your policy.
Factors Used for Car Insurance Comparison
There are certain essential factors that you should take into consideration while comparing car insurance online. Based on these factors, you can make the right purchasing decision. These are
Types of Coverage
The type of coverage is a necessary factor before deciding on the car insurance policy you want to purchase. There are three major types of coverage offered by insurance companies. These include third-party insurance that only covers third-party liabilities, standalone cover that covers own damages sustained by the insured car and comprehensive car insurance that covers both third-party liabilities and own damages.
While third-party insurance is mandatory, the rest two are optional. Thus, while comparing car insurance online, you must be aware of the type of cover you desire and then choose your plan accordingly.
Add-ons are optional covers offered by insurance companies to enhance the coverage of your car insurance policy. These covers can be purchased by paying an extra premium amount. Before purchasing a vehicle insurance policy, you must compare the types of add-ons, and the premium on these add-ons offered by the insurance companies. Some popular add-ons include Nil depreciation cover, Engine protection cover, NCB Protect, etc.
Insurance companies also offer certain additional discounts on premiums when you purchase four-wheeler insurance from them. Some of these include NCB discounts, anti-theft discounts, voluntary deductibles, discounts on AAI membership, etc.
While comparing four-wheeler insurance, make sure to check all the types of discounts offered by the companies so that you get the best deal.
Insured Declared Value
IDV or Insured Declared Value is still a misunderstood concept for many. It is simply the current market value of the car (minus depreciation) that you will receive in case your car suffers a total loss. Many policyholders to receive a higher claim amount, choose a higher IDV which increases their premium. On the other hand, many choose a lower IDV, so they have to pay a lesser premium amount but also get a lesser payout at the time of claim.
Thus, choosing the right IDV amount is very crucial while purchasing a car insurance policy. So make sure to compare this parameter beforehand and choose an IDV that is close to the market price of your car.
Claim Settlement Ratio
Claim Settlement Ratio is a major factor in deciding the credibility of an insurance company. It is the ratio of the number of claims settled to the total claims received by the company. A company having a higher CSR has higher credibility in the market.
Thus, by comparing the CSR of different motor insurance companies, you can find the best insurance provider for your car.
Before choosing your car insurance provider, it is also essential to understand what the customers think about that company.
Going through the customer reviews of insurance companies will help you in knowing about the after-sales services and the positives and negatives of the company.
Types of Car Insurance Policy Comparison
As stated above, there are three major types of car insurance policies offered in India. Before choosing your desired car policy, you must be aware of the features of each. Here is a table comparing all the types of car insurance policies.
|Points of Comparison||Third Party Insurance||Standalone Own Damage||Comprehensive Car Insurance|
|Third Party Cover||Offered||Not Offered||Offered|
|Own Damage Cover||No OD cover offered||Offered||Offered|
|Add-ons||No Add-ons||Optional Add-ons||Optional Add-ons|
|Premium||Less||Slightly higher than third party cover||Higher than third party and standalone OD cover|
|Personal Accident Cover||Offered (optional)||Offered (optional)||Offered (optional)|
|Zero Dep Cover||Not offered||Optional||Optional|
How to Compare Car Insurance Online?
Comparing car insurance online is not a tricky process at all. You simply need an internet connection and a few minutes to compare car insurance plans online. Here is how you can compare four-wheeler insurance online:
Step 1: Visit the official website of Policybazaar Insurance Brokers Private Limited (Policybazaar.com)
Step 2: Visit the ‘Car Insurance ‘ page from the ‘Insurance Products’ dropdown
Step 3: Enter your car number along with other details of your car such as model, RTO, variant, etc,
Step 4: You will now find car insurance plans of multiple car insurance companies. Here you can compare car insurance plans based on types, coverage, add-ons, IDV, and premium. You can then purchase the best plan via online payment modes.
Ans: Comparing car insurance online offers many benefits to car owners. Some of these include:
- Get the best motor policy
- Save up on premium cost
- Convenient purchase
- No hidden cost
- Multiple discounts
Ans: You can compare car insurance plans of multiple car insurance companies on Policybazaar.com and choose the plan that best suits your requirements.
Ans: Yes, you can purchase add-on covers with a comprehensive car insurance policy only and not with a third-party cover. However, add-ons can only be bought with new or renewal car policies.
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