Getting car insurance is an invaluable investment. It provides financial protection to you or any third party in case of unforeseen situations. Third-party insurance is mandatory as per government rules if you own a vehicle. For enhanced coverage, you can get a comprehensive insurance plan.
Comparing different plans lets you choose the best option as per your coverage needs and affordability. On Bajaj Markets, you can explore multiple insurers and plans in a single place.
Read on to know what you must consider while comparing various policies and its benefits.
Things to Check When Comparing Car Insurance Policies
Since there are numerous insurers and plans available in the market, you must compare the options to get the most suitable one. Here are some factors you must pay attention to while comparing different insurers and plans:
Premium Amount
You need to pay a premium to the insurance company in exchange for the coverage. By comparing the premiums associated with different plans, you can go ahead with the option that is more affordable for you. This can also help you benefit from limited-time offers and discounts, helping you save more.
Also, check if that issuer provides flexible payment options, allowing you to choose a suitable payment frequency. Based on your preferences and the insurer’s policies, you can choose from various payment frequencies, such as:
- Monthly
- Quarterly
- Semi-annually
- Annually
Remember, choosing a plan only because of the low premium charges is not ideal. You must weigh the benefits that the policy provides against the premiums. This will help you avoid paying unnecessarily high premiums for inadequate coverage.
Overall Coverage
From affordability to extra coverage, comparing different plans can help you enjoy many benefits. If you go ahead and get the first plan without checking other plans, you may miss out on better coverage options and other features.
You will not be able to know if any other options are better than the one you are choosing. On the other hand, by comparing different plans, you can select the most beneficial one. This is crucial not just for insurance plans but also when scouting for loan options.
For instance, the Bajaj Finserv car loan interest rate will differ from other lenders. So, you need to compare interest rates offered by multiple lenders when opting for vehicle, personal, home, or other forms of loans.
Insurer’s Claim Settlement Ratio
While exploring different insurers, one of the most crucial factors to pay attention to is the Claim Settlement Ratio (CSR). It is a crucial metric that reflects the percentage of claims that an insurance company has successfully settled in a year.
A high ratio shows that the insurer has a strong track record of settling claim requests. This is a positive sign that your claims will be settled without any issues whenever needed. Conversely, a low ratio may suggest that the insurance company is not financially stable and credible.
Network Garages of the Insurer
One of the most critical benefits associated with a car insurance policy is the number and quality of the network garages they have. This shows how well the insurance company will handle cashless repair requests, in case they arise.
You must choose an insurance provider with a strong network of garages all over the country. This way, you will not need to worry about getting your or their party’s car repaired in case of accidents or other damages.
Once you select an insurer, you must also check the location of nearby network garages to get quick services if required.
Insured Declared Value (IDV)
The Insured Declared Value (IDV) is the current market value of your vehicle. This value determines the maximum amount an insurance company will pay in case of total loss or theft of the vehicle.
While comparing the car insurance plan, you must also calculate and compare your car’s IDV. This is because each insurer’s calculation will differ, which may affect the plan’s coverage and the premium costs.Â
A higher IDV results in a higher premium for the plan. On the other hand, a lower IDV leads to a lower premium.
Available Add-on Covers
When you get a comprehensive car insurance plan, you can include add-on riders or covers to your base plan to enhance coverage. The range of these additional coverage options varies with each insurance provider. Therefore, when comparing different plans, check the available add-on covers and their premiums.
You can choose from various add-on covers such as:
- Zero Depreciation Cover
- Roadside Assistance Cover
- Engine Protection Cover
- Consumable Cover
- No Claim Bonus (NCB) Protection Cover
Quality of Customer Services
Another benefit of comparing plans is that you will be able to better understand the services that different plans offer. With this information in hand, you can opt for an insurer that provides better services. These include after-sales services like cashless repairs, grievance redressal, etc.
As you can see, comparing car insurance plans online is a smart idea. With this information, you may have a better understanding of what to consider while comparing the plans and can choose the right option.
Do not forget to check the process of filing a claim and the formalities involved for the same. This will help you choose a more convenient option and plan better in case of any unforeseen situations.
