Thinking of buying a new car? It is no surprise that you have a lot of pondering to do. And it is rightfully so! A car is one of the most prized possessions that you own with immense pride. The hunt for the new car begins with online search and comparison. You try to get as much information as possible about the latest models and their features. Next, you take the advice of every person you come across, right from your colleague to your hairdresser, and compare them all. You leave no stone unturned! But when it comes to
car insurance, we are quite oblivious. Comparing car insurance is important too. Wondering why? Read on.
Why compare car insurance?
If you want to get the best deal on the car insurance policy, it is highly advisable to compare car insurance online. When you do it, you can get the best deal for your car. One of the biggest advantages that you will get is on premium rates. Premium amount varies from insurer to insurer, however, when you compare car insurance plans, you will get the plan which is more suited to you with affordable premium rates. You should not compromise the features for cheap premium rates. Another advantage of comparing insurance policies is that you will get to know about various features that insurance companies are offering. For instance, some offer cashless repair at the network garages, whereas, some offer affordable engine protection cover. You can select the plan according to your needs.
How to compare car insurance?
The best way to go about it is browsing online. You can find several tools and aggregators on the internet that offer quick and convenient ways to compare car insurance in India. Before buying the insurance cover, it is always a good idea to get a car insurance quote and compare the insurance premium that would be incurred. There are multiple aspects that need to be analyzed while comparison. Firstly, the premium rates offered by insurance companies need to be understood and compared accordingly. This will give you an idea how insurance providers decide the premium and the factors that come into play while doing so.
Next, it is important to check the type and level of coverage being offered by your car insurance company. This is important since a below-par insurance cover may leave you in trouble in case of an unforeseen incident. In order to avoid this, identify your requirements first and choose the policy that covers all your needs. Additionally, you should also check out the fine print to get accustomed to the situations and events not covered by the policy.
Another thing to bear in mind while comparing car insurance is that we should avoid falling into the trap of buying the cheapest insurance policy to save premium. This hindsight can cost you a lot more than you what you would save on premium. It is all about striking a right balance between the two by factoring in your requirements and at the same time ensuring that you pay a premium that is affordable.
An important tip to save your money while comparing motor insurance online is comparing the ‘deductibles’ and add-on covers. These add-ons add value to the car policy that can come in very handy during emergencies. Some of these are Personal Accident cover (both driver and passengers), roadside assistance, and third party liability covers. Another important feature to look out for while comparing car insurance policies is the No Claim Bonus, referred to as ‘NCB’. With this, you are eligible to a sizeable discount in your insurance premium during renewal, if you don’t register any claims during the policy period. While comparing car insurance online, it is a good idea to compare the NCB offered by companies to zero in on the best insurance cover.
What Are The Different Types of Car Insurance
Now let’s look into different types of car insurance. You should compare car insurance online on the basis of its types also. There are basically 3 types of car insurance policy – Third-party, Own Damage, and Comprehensive. Let’s look into more detail:
Third-Party Car Insurance
A Third Party Car Insurance offers financial cover to the insured person against any legal liability arising due to loss/damage caused to a third-party person or property. Third-party car insurance is the compulsory plan that all car drivers need to buy if they want to drive on the Indian roads. Under the Motor Vehicle Amendment Act, 2019, it is mandatory to insure your car with at least third-party car insurance. It will not offer you wide coverage, but you can save yourself from the hefty fines.
Comprehensive Car insurance
A Comprehensive Car Insurance protects the car from any kind of unforeseen damage. It covers the person financially in case of any loss is incurred as a result of an unavoidable instance to the vehicle. It covers the person against theft, financial loss and accidents. The cover can range from, coverage to an insured party vehicle and third-party liability which means that it covers – damage to insured vehicle or theft of the car also coverage of legal liability (liability to others for body or property injury by insured vehicle). When you compare comprehensive car insurance with third-party car insurance, then you will how much better comprehensive plan is. You will be protected as the comprehensive plan will provide you the coverage that will ensure the overall protection of your car and yourself.
Own Damage Car insurance
When it comes to Own Damage Car Insurance Policy, it is a part of the standard comprehensive motor insurance. Before changes were made in the insurance sector by IRDAI, you could only purchase third party liability insurance separately, but now you can opt for Own Damage cover separately as well, i.e. now you can own a third party and a own damage car insurance separately.
Now, that you are aware of the three types of car insurance, let’s look at the table mentioned below where you will find what coverage you get with what type pf car insurance plan.
