Why You Should Compare Car Insurance Before Buying Or Renewing A Policy For Your Car?

Policy For Your Car

December 11th, 2019   |   Updated on June 28th, 2022

What is Car Insurance Policy?

Car Insurance Policy is an agreement between the insurance company and the insurer wherein, the insurance company agrees to pay the financial coverage against any damage, accident, theft, fire, explosion, riots, or natural calamities.

With a valid car insurance policy, you can protect your car from any physical damage, third-party damage, or damages due to any unwanted road accidents.

Why Compare Car Insurance?

Comparing Car Insurance Policies help an insurer in the following way:

  1. Trending: Compare Car Insurance quotes to obtain the most trending policies. It will help you to get the correct plan by filtering the customers’ car model number and geographic location.
  2. Lower Premiums: Different insurance policies have different coverage and premiums. Compare Car Insurance Premium online and get multiple policy options to choose from.
  3. Discount: Alike the premiums, discounts offered by the insurance company differs from provider to provider. Car Insurance Comparison will help you to get the best discount.
  4. Customization: Declaring accurate IDV and Add-on is very important to receive financial coverage. By comparing, you can easily filter your detailed requirements, Insured Declared Value (IDV), and other Add-ons.
  5. Add-on: You will find various tools to compare car insurance policy online which further helps you to learn about the different add-ons provided by different insurance companies.
Other Key Benefits Of Car Insurance Comparison
  • Convenient
  • Transparent
  • Easy Comparison
  • Cashless Facility
  • Money-Saving

Types Of Car Insurance Policies

Insurance Claims

Car Insurance Policies are mostly classified into two types:

Third-Party Car Insurance Policy: The Third Party Car Insurance Policy offers coverage against any third-party liabilities and traffic penalties.

It is the most fundamental and authorized form of a car insurance policy. During any road accident, if you injured someone or damage their property, they could claim on your Third-Party Policy.

Under the Motor Vehicles Act, 1988; it is compulsory for every Indian citizen to at least purchase a Third-Party Car Insurance Plan for their vehicle.

Comprehensive Car Insurance Policy: A Comprehensive Car Insurance Policy is a bigger plan with two components – Own Damage Cover and Third-Party Policy.

With this policy, you can recover damages to your car as well as to a third party. Besides, this policy also covers protection against any theft, fire, explosion, riots, vandalism, or natural calamities.

Third-Party Car Insurance Policy
Comprehensive Car Insurance Policy
< style=”font-weight: 400;”>Coverage < style=”font-weight: 400;”>Only third-party liabilities < style=”font-weight: 400;”>Both third-party liabilities and own damage liabilities
< style=”font-weight: 400;”>Premium Cost < style=”font-weight: 400;”>Low < style=”font-weight: 400;”>High
< style=”font-weight: 400;”>Add-On < style=”font-weight: 400;”>No Option to add Add-ons < style=”font-weight: 400;”>Option available to add Add-ons
< style=”font-weight: 400;”>Mandatory < style=”font-weight: 400;”>Yes < style=”font-weight: 400;”>No
< style=”font-weight: 400;”>Best Recommended For < style=”font-weight: 400;”>Old Cars < style=”font-weight: 400;”>New Cars
Add On Covers
  • Zero Depreciation Cover
  • Accidental Cover
  • Consumables Cover
  • Passenger Cover
  • Breakdown Assistance Cover
  • Return to Invoice
  • Engine & Gear Box Protector
Factors Used to Compare Car Insurance

The following are the factors used to compare car insurance:

  • Car’s Insured Declared Value
  • Deductible Money
  • Add-On Cover
  • Car’s Age
  • Safety Features
  • Voluntary Access

How To Compare Car Insurance Policies?

Life Insurance Policy

Before you start comparing your car insurance policy, check out the mentioned information:

Check your IDV: When looking for a car insurance policy, check the IDV (Insured Declared Value) of your car.

Insured Declared Value is the current price of your car. Setting a correct value for it will help you to receive the maximum amount of financial compensation in case of any damages and losses.

Check the Service Benefits: The next objective is to check the services provided by the insurance company. Here is a list of things that a good insurance company should offer:

  • Doorstep Pickup
  • Repair & Drop with 6 months Warranty
  • 24*7 Customer Care Support
  • Cashless Facility
  • Network Garages
  • Super-fast Claims
  • Smartphone-enabled Self Inspection

Best Value for Money: Finally, if the services provided by the insurance company and Insured Declared Value satisfies you, check out the policies which are offering the best premium costs and discounts.

Frequently Asked Questions About Car Insurance Comparison

Retirement Health Insurance

Q. Can Insurance Be Transferred From One Person To Another?

Ans: Yes. Although a car insurance policy can be transferred from one person to another, the No Claim Bonus (NCB) cannot be transferred to the new owner.

Q. How Can I Check My Car Insurance Is Valid Or Not?

Ans: To check where your car insurance is valid or not follow the mentioned ways :

  1. Buy a vehicle report history from any trustworthy resource
  2. Contact the Department of Motor Vehicles (DMV) of your locality
  3. Ask for insurance information from the previous insurer
  4. Check the Vehicle Insurance Status Search issued by the Insurance Regulatory and Development Authority (IRDA)
  5. Try the QR Code, if available, on your policy
Q. Can I Renew My Car Insurance After The Expiry?

Ans: Yes, you can. The car insurance policies also provide a grace period of 3 to 30 days to renew the policy, wherein you can renew your premium without paying any penalties.

However, it is important to renew the policy before the expiry date to avoid penalties and harassment. [The grace period varies from insurer to insurer.]