Buying a car insurance policy online is real quick and instant. But the real preparation and home work is required in getting an accurate quote for your vehicle. A Car Insurance Policy is filled with complex jargons which makes it difficult to decide which policy should be accurate for your car.
So let us understand how to read car insurance quotes while buying a policy online.
There are a few key pointers that are to be looked into while viewing car insurance quotes. Some of the key ones are listed below:
- Details of your Car: Filling in the exact accurate details of your vehicle which includes the make and model of your car and the year of manufacturing of your car. This will help in understanding the age of your car which is an important factor while buying a car insurance policy.
- Insured Declared Value (IDV): “Insured Declared Value (IDV)” in simple term means the sum assured for your car insurance policy. It is the amount that is paid to you in case of complete damage or theft of your car. The IDV is determined by the age, model and brand of your car. With depreciation the IDV for an asset decreases every year. It is beneficial to choose plans from companies which calculate higher IDV of your car.A lot of quotes that you might get online will give you lower value as it lowers the IDV. You need to thus check that you have edited and corrected your IDV before comparing as all claims are related to IDV and is a percentage of the same.
- No Claim Bonus: If you have no history of claiming insurance on your vehicle then this is an advantageous point that you should look for. When you are looking for car insurance quotes, every insurance company provides for “No Claim Bonus” to its customers if no claim was made in the previous year. Since it is a massive discount, accumulated each year, it is best to be mindful of whether the car insurance quotes have factored in the NCB.There is a standard percentage of NCB that you can avail for every claim free year.
|All Vehicles||% of NCB|
|No claim at the end of Year 1||20%|
|No claim at the end of Year 2||25%|
|No claim at the end of Year 3||35%|
|No claim at the end of Year 4||45%|
|No claim at the end of Year||50%|
- Additional Cover: Additional Covers are nothing but riders that you can opt for further safety of yourself and your car. The insurance companies provide various riders like personal accident cover for passenger, electrical and non-electrical accessories, 24×7 roadside assistance etc. while viewing car insurance quotes, check whether any additional covers have been added to your insurance premium. You can opt for one or more than one cover by paying an additional premium. So you should look which all additional covers are being provided by the insurance companies and which might be beneficial for you.
- Add-Ons: Add-ons as the name suggest are additional benefits that you can buy for your vehicle. Some of the popular add-ons while buying car insurance policy are:
- Zero depreciation– When an insurance claim is made the insurance companies deduct the depreciation amount on the parts of the vehicle which results in the loss of the insurer, the zero depreciation add-on helps you in receiving full claim without any loss
- No-claim bonus- Insurer receives bonus as a discount on the premium of the policy for not claiming insurance but if you claim then you are not eligible for this claim but if you buy NCB protect add-on you can claim bonus even after making one claim in a year
- Engine protection- As the name suggest this add-on covers for engine protection to cover damages in case of non accidental damages also if due to heavy rains the car was submerged in water then this particular add-ons covers for the damages
- Invoice cover– If the car is stolen or has total damage then with this add-on you will get total reimbursement of the on-road price of the car.
So while choosing add-ons purchase which suits your car the best as these are beneficial add-ons which can be purchased by paying some additional premium.
- Choosing wisely: Choose a car insurance company wisely depending on the following factors:
- Always check for the authenticity of the insurance company from IRDA Check whether the company is registered with IRDA as such companies are legitimate.
- Opt for companies having a quick claim settlement process. With a quick secondary search you can know which companies have a swift and hassle free claim settlement process and a very low claim rejection ratio.
- Opt insurance policies of those insurance companies which has a wide network of cashless garages under its umbrella.
Buying car insurance policy is simpler if you’re done with the important part, understanding your car insurance quotes correctly. Instead of going to multiple insurers websites to gather car insurance quotes, it’s advisable to go to an online insurance broker. This will safeguard your car and your pocket from any unforeseen losses, and ensure that you get a fair price.