When you’re looking for a new car insurance plan, it can be tricky to know how to compare all of the different options out there. With so many factors to consider, it can be difficult to figure out what’s most important.
In this blog post, we’ll explore some of the key parameters you should use when comparing car insurance plans.
Table of Contents
Importance of Car Insurance Comparison
Car insurance comparison is an important step in finding the right car insurance for you. By comparing car insurance plans, you can be sure to find the best possible rate for your situation.
There are a few things to keep in mind when comparing car insurance plans. First, make sure to compare apples to apples. That is, compare the same type of coverage from each company.
Second, be sure to compare rates from different companies. Even if two companies offer the same type of coverage, their rates may differ significantly.
Finally, don’t forget to read the fine print. Some companies may offer lower rates but have more restrictions on coverage than others. Be sure to understand all the terms and conditions of each plan before making a decision.
By following these tips, you can be sure to find the best possible car insurance plan for your needs.
Parameters for Car Insurance Comparison
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Type of Coverage
There are three primary types of car insurance coverage: liability, collision, and comprehensive. Each type of coverage has its own set of benefits and drawbacks, so it’s important to understand the differences before you purchase a policy.
When you’re comparing car insurance plans, be sure to evaluate the types of coverage each plan offers. Consider your needs and driving habits to decide which type of coverage is right for you.
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Add-on covers
There are a few add-on covers that can be extremely useful and must be considered while comparing car insurance plans. Some of the most common add-on covers are:
- No Claim Bonus (NCB) Protector Cover
- Return to Invoice Cover
- Engine Protect Cover
- Tyre Protect Cover
- Key Protect Cover
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Claim settlement ratio
The claim settlement ratio is the percentage of total claims that an insurance company settles during a financial year. It is one of the most important parameters to compare when buying car insurance plans.
A high claim settlement ratio indicates that the insurer is efficient in processing and settling claims.
When comparing car insurance plans, be sure to check the insurer’s claim settlement ratio for the previous few years. This will give you an idea of how well the company has performed in settling claims.
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Network garages
A network garage is a list of pre-approved auto repair shops that have agreed to provide discounts to policyholders. Insurers usually have a large network of garages across the country, so it’s important to make sure that there are plenty of options in your area.
Here are a few things to keep in mind when comparing network garage options:
– Make sure there are plenty of options in your area. The last thing you want is to be stuck with only a few choices when it comes time to get your car repaired.
– Ask about discounts. Most insurers offer some sort of discount at their network garages, so be sure to ask about the same.
– Check reviews. As with anything else, it’s always a good idea to check out reviews before selecting a service provider.
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IDV value
The IDV value is the Insured Declared Value of the vehicle and is the maximum amount that the insurer will pay in case of theft or total loss of the vehicle.
It is important to choose an insurance plan with a high IDV value so that you are not under-insured in case of an unfortunate event.
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Insurance premium
It is the amount of money you will pay for the insurance coverage. Other important parameters include the deductible, which is the amount of money you will have to pay out-of-pocket before the insurance company starts to pay; the policy limit, which is the maximum amount of money that the insurance company will pay for your coverage; and the coverages, which are the different types of protection that are included in your plan.
Zero Depreciation Cover in Car Insurance
A zero depreciation cover in car insurance is an add-on cover that ensures that you get the full value of your car in case it is damaged in an accident. This cover is particularly useful for new bikes as they tend to lose a lot of value in the first few years.
However, it is important to remember that a zero depreciation cover will not cover wear and tear or any damage that is not caused by an accident.
Conclusion
There are a lot of things to consider when you’re shopping for car insurance. But if you keep these parameters in mind, you’ll be able to compare plans and find the one that’s right for you: price, coverage, customer service, and discounts.
By taking the time to do your research and compare your options, you can find an affordable car insurance plan that gives you the coverage you need.
Author Bio: Smriti Gala works as a Digital Marketing Manager with Coverfox. As her life turned upside down when COVID severely afflicted her family members, Smriti decided to dedicate her expertise to informing and educating the masses about the importance of health insurance. When she is not actively writing enlightening content, our ‘monk marketer’ likes to meditate, meet new people and explore less traveled territories.
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