Scouting Through Car Insurance Quotes? Consider Five factors to Make the Right Selection

Comparing insurance quotes online is a smart way to pick the right car insurance. But what are the things that you should check while comparing? Read this post to find out.

The increasing popularity of online insurance has made the car insurance buying and renewing process quick and simple. Most tech savvy car owners now compare the insurance quotes from multiple insurance providers to make the right decision. You can also do the same to find yourself the best car insurance.

But what are the things that you should consider when comparing the insurance quotes? For someone who is buying an insurance policy for the first time, every quote and policy looks similar and confusing. If you want to analyse the insurance quotes correctly, focus on these five factors-

  1. IDV of the Vehicle

In case of theft or total loss of the vehicle, the IDV (Insured Declared Value) is the maximum amount that an insurer has to reimburse. It is calculated by deducting the depreciation cost from the current value of the vehicle.

Select the IDV of the vehicle carefully when comparing car insurance as it significantly affects the premium cost of the policy.

  1. Add-ons Offered by the Insurance Provider

Many of the insurance providers, especially private companies, offer a wide range of additional services like 24×7 helpline, roadside assistance, zero depreciation cover, etc. Policies with such add-ons generally cost more than a standard policy.

Make sure that you go through the add-ons while comparing the insurance quotes as many of them offer great benefits at minimal costs.

  1. Discounts and Offers if Any

A lot of car insurance companies regularly provide many different types of discounts when buying or renewing a car insurance. Keep an eye on such offers to reduce the annual premium of your car insurance.

  1. Price of the Insurance You should also check the price of the car insurance when comparing the quotes. The price is not really the most important factor, but it does play a significant role while selecting a policy.

Generally, the car insurance from public companies is cheaper than private companies. However, the private companies are known to offer better benefits and smoother claim settlement process.

  1. Number of Claims Allowed in a Year

It is usually recommended that one should avoid making claims for small damages to earn no claim bonus which can significantly reduce the next year’s insurance premium.

With car insurance, you can file multiple claims in a year without depleting the IDV. Only total loss or theft can deplete the IDV amount. However, in case of zero depreciation cover, most insurance providers only allow two claims in a year. While comparing car insurance quotes, make sure that you check the number of claims allowed in a year.

With so many insurance providers offering car insurance, it is essential for every car owner to research and compare the quotes thoroughly before buying a policy. While there are lots of things to be considered while comparing, the 5 mentioned above are the most important.

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