With so many insurance companies selling car insurance, choosing the right car insurance policy can be difficult. The best car insurance policy is one that ensures maximum coverage at nominal premium rates. However, many people are ignorant about factors that affect car insurance prices and settle for the policy with the lowest premium rates.
A simple understanding of certain basic factors can help in buying the right kind of car insurance. While detailed research by customers is not always possible, keeping certain essential tips into consideration helps to avail the best quotes while buying a car insurance plan.
- Know your budget: Before choosing any car insurance policy, understand details including third-party liability insurance and comprehensive car insurance. Also, the insured declared value of your car must be roughly equal to its market price. Then, choose the extent of cover that you are aiming for. Opting for too low premiums implies that you are underinsured. Paying very high premium rates in a bid to avail excess coverage does not help either. The need is to evaluate and determine the ideal cover amount before proceeding to pay for the plan.
- Driving habits: Insurance companies will take into account your driving history before deciding on the amount of coverage you must opt for and its corresponding premium rates. In addition, car insurance companies in India consider relevant details including the incidence of traffic violations in the past, incidents of rash or careless driving, road rage instances, etc. Too many claims raised in the past increase the risk of the insurers having to make claim payments. Existing policyholders who have made no claims in the past or had paid for minor accident damages from their pockets avail the benefit of the no-claim bonus (NCB). This allows them to renew their policies at discounted premium rates, thus, allowing them greater coverage at low premium charges.
- Check online: Comparing insurance quotes on companies’ sites and insurance web aggregator portals help to save money and gain access to multiple coverage options. You could choose from a variety of car insurance policies and comprehensive car insurance Moreover, you will be able to view the claim settlement ratio of each company along with their performance details. This means that you not only have access to the coverage and pricing details of all the insurance companies on the same page but can also choose the best option.
- Check for discounts: In a bid to stay ahead of the competition, many insurance companies announce seasonal discounts to their prospective customers. Some companies announce reduced premium rates for customers who agree to pay for safety and anti-theft devices on their cars. This is because fitting such devices means increased safety for your car, thus, reducing chances of claims made on thefts. The benefit of making low claims is then passed on to the insured policyholders.
- Add-on covers: Add-on covers are bought to enhance the protection element of your car. However, not all add-on covers may serve your purpose. Instead of opting for all available add-on covers, opt to buy car insurance from the insurer that sells add-on covers tailor-made to the needs of your car.
Hope the above gives you an insight of how to get the best car insurance policy.