Buying a car insurance policy may be easy, but buying a suitable policy which is affordable also is not an easy job. Here is how to do it.
Which is the best car insurance policy? Are Add-ons worth the money? Is purchasing car insurance easy? Find out the answers to these questions as two friends discuss how to purchase an affordable car insurance policy:
“Congratulations on your brand-new car,” said Ashok when he saw his friend Prakash parking his new car in their building’s parking lot in the evening. “Thanks Ashok, from tomorrow I don’t have to travel in local trains,” replied Prakash with a pleasing smile.
Ashok had recently met with an accident while driving on a highway and wanted to ensure that his friend was covered against risks. “Your office is on the other side of the town, right? It means you will have to drive on the highway quite regularly. I hope you have car insurance?” asked Ashok. “Yes, a lot of driving but I like it. And I was thinking of purchasing a car insurance policy online tonight. I heard a Third-party Liability Insurance policy is not expensive.”
“A Third-party Liability Insurance policy is inexpensive, but it is limited in terms of the coverage offered. I regretted buying just that and not going for a Comprehensive Car Insurance policy when I had to pay a lot to repair my damaged car,” said Ashok while recollecting his car accident.
“But isn’t a Comprehensive Car Insurance policy too expensive?” enquired Prakash. Ashok placed his arm around Prakash’s shoulder as they walked towards the building and replied, “Not at all, and that’s why I regret not going for it earlier. Now, I have gone for a Comprehensive Car Insurance policy and enhanced it with an Add-on. And all this is affordable. Especially, if you compare it with the amount of money I had to pay to repair my damaged car.”
Both of them spent some time in the lobby before heading to their respective apartments. Their conversation covered the following points related to purchasing an affordable new car insurance.
Car Insurance Prices
The price of a Third-party Liability policy is fixed as per the Insurance Regulatory and Development Authority of India (IRDAI). It is similar across insurance providers. However, car insurance prices change when it comes to a Comprehensive Car Insurance policy. A Comprehensive Car Insurance policy includes the mandatory Third-party Liability insurance cover as well as insures your car against risks such as thefts, accidents, calamities, etc. Add-ons such as Zero Depreciation, Roadside Assistance Cover, etc. can be included in your Comprehensive Car Insurance policy for enhanced coverage.
There are several insurance providers highlighting cheap insurance policies. However, one must also consider the coverage offered by those policies. Whether an insurance policy is affordable or not can be gauged by considering its premium charged and coverage offered, and then comparing it with policies offered by other insurance providers.
Steps To Purchase An Affordable Car Insurance Plan Online
Visit top car insurance websites and check what is offered by them. Note what is covered and what is not covered in their Comprehensive Car Insurance plan.
It is not necessary to go for all the Add-ons, only select suitable Add-ons. For example, if you often drive with passengers in the back seat, you might want to include a Passenger Cover Add-on. If you travel in the car alone, this Add-on might not prove productive. First decide the ideal coverage, then compare the premium charged for that coverage offered by various providers.
While comparing car insurance, it is necessary to keep in mind the quality of services offered by the insurance providers. Insurance providers should be evaluated based on customer convenience before, during and after purchasing insurance, especially during claim settlement. Claim Settlement Ratio of the insurance provider can be looked at for that. User reviews and peer review can prove handy to know more about an insurance provider.
Read about the insurance provider. Their structure is an important factor as it plays a huge role in making the policy affordable. For example, the cost advantage derived from a digital setup is transferred to the consumer in the form of a superior product at an affordable cost.
Finalize the insurance provider, go through the purchase journey on their website and make the payment.
After discussing various aspects of car insurance in detail with Ashok, Prakash purchased a Comprehensive Car Insurance policy along with Zero Depreciation and Engine Protect Add-ons. Note that renewing car insurance in a timely manner is as important as purchasing it.
(By Animesh Das, Head-Product Strategy, ACKO)