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How to effectively compare auto insurance plans

Illustration for article titled How to effectively compare auto insurance plansem/em

With insurance companies listing out their plans online, buying car insurance has become simple these days. Today, companies host a multitude of policies and offers on their websites, which makes it easy for customers to compare and pick the best suited insurance plan. However, the comparison process gets a bit difficult from a lay person’s perspective, as the features of different policies look more or less the same. For example, certain features in two different policies may match in all respects, yet one is priced higher than the other. The below points explain how to make an effective comparison of vehicle insurance policies.


Criteria for making comparisons

Motor insurance plan broadly covers two different categories of insurance coverage namely, two wheeler insurance and four wheeler insurance. Since insurance requirements for both the categories contrasts from one another, the criteria for making comparisons should also vary. For example, you may choose a comprehensive coverage against flood for your brand new car, but the same plan may prove needless for a two wheeler. Also, the premium payment term and policy term for both the categories differ. A study reveals that more people fail to remember the renewal date of two wheeler insurance policy than the approaching premium payment dates of a four wheeler insurance. The main reason is that, two-wheeler insurance plans come with a low premium amount and yearly payments that it often goes unnoticed. So in such cases, it is better to choose a long term insurance plan and opt for timely reminders from the insurance provider.


Insured Declared Value of your vehicle

Your vehicle usage is another important factor to be considered when comparing policies online. The make and model of your vehicle is also a chief factor in deciding the type of policy to be purchased. The aforementioned factors are used to calculate the Insured Declared Value (IDV) of the car, at the time of making claims. For example, if you use your vehicle to commute on a daily basis, then the rate of wear and tear is likely to be higher than the vehicle that is used only once in a week. Your vehicle’s IDV is also used for the purpose of determining the amount of premium to be paid by you.


Prioritize your requirements

One of common mistakes that people make while choosing insurance policies is that, they compare products underscoring price and features but not requirements. As a result, you end up buying an insurance policy which can affect your finances without providing the intended coverage. So be wise in making decisions related to your motor insurance policy, as it’s an investment which safeguards your vehicle in return. You should also check the add-ons that come along with your vehicle insurance plan and choose only if it’s necessary.


Third party comparison portals

You may need expert advices when it comes to finding network garages and knowing the reputation of any particular insurer. For such comparisons, you can choose a trusted third party web portal such as BankBazaar and make side-by-side comparisons of insurance products. The portal will show the top ranking car insurance policies based purely on customer sentiments. It has been noticed that different insurance companies give variable pricing and offers for the same model of car. Therefore, it’s ideal to compare the prices and offers of the leading insurers before taking a final decision.


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