How to Compare Car Insurance Online in India – Tips and Main Components

How to compare car insurance online?

We all know that car insurance is something that you can’t delay or postpone. It’s a mandatory purchase for most states, and the penalties are harsh if you don’t have it. Though it is relatively easy to get online and compare car insurance products, some details are often not revealed by insurance brokers online.

Here are the main comparison components of car insurance. 

1. Coverage

Buying car insurance is not an easy task. There are many factors to be considered before deciding on the best policy for your needs. For example, you must decide whether you want standalone own damage or third-party liability coverage. The former provides coverage against damages to your own vehicle while the latter covers you from the legal liability of paying compensation to a third party if the insured vehicle damages their property. In India, third-party liability automobile insurance is mandatory for all vehicles.

You can also opt in to buy a comprehensive or bundled car insurance plan to get better coverage. Comprehensive coverage helps pay for damage to your vehicle as well as third-party liability if someone gets hurt in an accident involving you. This gives you peace of mind knowing that there are unlikely any surprises when it comes time to file a claim because both are covered by this plan. A bundled car insurance plan provides 3 years of third-party liability and 1 year of standalone own damage coverage to new car owners. 

2. Exclusions

Inclusions and exclusions are two important aspects of any policy that insurance buyers should understand before making a decision. One common error that insurance customers commonly do is reading about the policy advantages but not bothering to read about the circumstances that the policy does not cover. As a result, to make an educated selection, make sure to comprehend both inclusions and exclusions.

3. Available Riders

Extending your policy cover with riders is an excellent way to keep your car protected. Car insurance riders are additional coverage that may be added to current plans at the time of purchase or renewal on payment of an extra premium. Riders provide you with protection against unforeseen risks and expenses, so you must know all about them before deciding on what type of coverage is best for you.

4. No Claim Bonus

NCB stands for no claims bonus and is provided to drivers who do not make any car insurance claims in a year. This means that the next time your policy expires, you will be entitled to an additional discount on your premiums because you haven’t made any claims at all. The amount of this discount varies depending on what company or provider you are with but typically ranges around 20% off on your first year. That may seem like a small percentage, but when compounded over the years it can really add up.

5. Claim Settlement Ratio

You don’t want to be left in a lurch, wondering what your next move should be after a car breakdown. Having the right insurance company is the key for this and not just any insurance company will do. One of the most important factors to consider when selecting an insurer is their claim settlement ratio. It is the ratio of settled claims to the number of claims received during a financial year. It is one of the most accurate indicators of whether or not an insurer processes client claims properly and certainly one of your higher concerns while comparing insurance products.