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All You Need to Know About Car Insurance Companies

Karen Menezes Karen Menezes 20 September 2016

What are the essential details that you need to learn about car insurance companies in India? Read more to know how to choose the right car insurance company.

Car Insurance Companies

When you’re buying car insurance, we assume that you’re going to buy a solid insurance policy that will cover your vehicle as well as third-party damages. However, do keep in mind that the purchase of a cheap policy or only a third-party insurance will get you nowhere. Paying a cheap premium will give you a policy that will not come through at the time you need it. When you look for different policies online, you might want to put in some thought into which car insurance company to choose. This page is dedicated for that. Read about why you should buy insurance from a broker and not an agent, how to choose your car insurance company, and how to evaluate your policy at the end of the year.

Broker vs. Dealer vs. Agent

So that you know, there are several ways for you to buy your insurance. You could buy it from an agent, directly from the company, your car dealer, or from the brokers. Either way, they will have an IRDA registration number. This is the biggest proof of authenticity. A few basic pointers will help you decide whom to buy your car insurance from.

  • Dealers: Dealers are the car dealers you buy your cars from. If it is a brand new car, your dealer will offer you an insurance policy as a seemingly less rate. However, remember that he is making up for that discount elsewhere in your car payment. In the process, we end up paying the dealer more than we ought to. If you were to buy a policy for yourself online, there are high chances that you will end up saving a lot of cash that may have otherwise been fringe expenses.

  • Agents: Agents are representative of your car insurance companies. You can always approach them, as the company employs them. However, note that because they represent only one company. They will not be able to offer you plans from different companies, and there are good chances that you will miss out on something that was meant for you. An agent will not be able to represent you in the court of law.

  • Brokers: ...and then God made brokers! Brokers are your best bet when it comes to purchasing car insurance. They have the IRDA license and are not affiliated to any company. They can provide you quotes from all the companies registered with them. As they don’t represent any company, they represent the client (you) in the court of law! There are brokers and then is Coverfox. Coverfox is not only a broker; we are web aggregators. This means that you can not only look at various policies but you can also compare the policies to choose whatever suits you the best. Besides, Coverfox offers post-sale services as well.

Comparing Car Insurance Quotes

Okay so you have entered your details about your requirements and Coverfox gives you the top three. Now how do you decide which company works for you? Don’t worry here are a few things that will help you decide “the one”:

  1. Premium vs cover: While it is not a good idea to go for a policy solely on a low premium, it is advisable to check which premium gives you the best cover. The company that gives you the best cover for an affordable premium is what will suit you the best in the long run.

  2. Deductibles: Every company has a different structure and offers for a discount against deductibles. Deductibles are voluntary and involuntary. You don’t want to pay a significant chunk of your expenses via your pockets; you ought to pay just the right amount for a nicely lowered premium. Look for a company that offers you the best discount against the deductibles.

  3. No claim bonus: No claim bonus is the bonus you get after continuous claim-free years. Usually, this bonus translates into a discount on your premium. Your no claim bonus is accumulated, and you get gradually increasing discount, the highest being 50%. When you buy a new car or change your insurer, you can have this bonus transferred to your new car or new company. When you’re looking for a potential insurer, watch out for the NCB.

  4. Cashless garages: This is very simple. Cashless garages affiliated to the insurance companies will ensure cashless service for your car. The more expansive the cashless garage list is, the more options for you to choose from. Pick a company that has a good list of cashless garages.

  5. Add-ons: A few companies offer some cool add-ons that are worth checking out. A few of the most popular add-ons are Zero Dep, Invoice cover, NCB protect etc. Choosing a company that offers the best add-ons. This will ensure that you can upgrade your cover whenever you want.

How Would you Choose a Car Insurance Company?

Remember we spoke about pointers to choose your car insurance company? Well, here are some pointers that will definitely help you decide the best car insurance company for your beloved four-wheeler.

Check for Reputation and Financial Standing

So you have three viable quotes from three different companies, and it all boils down to which insurer you will go for. The first step is to check for the company’s reputation and financial standing.

  • Firstly, always, check your company’s authenticity. You can check for the company’s IRDA registration number. You can check that on the IRDA website. Once you know that the company is registered with the IRDA, you can rest assured that the insurer is legitimate.

  • Secondly, you should check for the company's financial standing. This will give you an idea of whether the company is capable of settling your claims. You can get this idea by committing to a simple Google search.

  • Thirdly, check for the potential insurer’s claim rejection ratio. As the name suggests, claim rejection ratio is the ratio of the cases rejected to the claims settled. Needless to say, the lower the claim ratio, the better option it is. Again, this is a matter of a simple Google search. Go for a company that settles most claims, as that gives you an assurance that the company won’t reject your legitimate claim, and are looking to settle it.

Periodic Check

It is crucial to evaluate your car insurance policy every once in a while. When your car policy expires or when it is close to renewal, it is an excellent idea to evaluate a few things. Check whether your current company has given you an excellent customer service. You can assess how the company treated your claims. It is also a good idea to see whether your cover is enough. If you have brought a new car, it's a superb idea to get a better cover. Evaluate your premiums to check if it is cost-effective and gives you the best cover. If you need extra cover, you should think about investing in a couple of add-ons.

Make sure that you compare your policies while you buy yourself a car insurance policy. But don't just stop there. Go ahead and take a pick from the buffet of car insurance companies waiting to offer to better features. Buying car insurance online is easily the best thing happening to the users.

Karen Menezes
Written by Karen Menezes
An optimist at heart, Karen loves to see the world through a pair of rose-tinted glasses. An award-winning blogger, she loves to dream with her eyes open. Writing is not her passion, it’s an OCD! If at all she isn’t writing, you can find her shopping online or experimenting with DIY recipes.