Car insurance costs have steadily risen over the past few years. The pivotal factor while choosing a deal is to determine whether it offers a considerable benefit to you when it’s required the most.
The most important factor to keep in mind about car insurance coverage is that it is formulated to reimburse the cost of vehicle damage occurred due to a mishap. If the insurance policy is ready to cover that without placing an unnecessary financial burden on you, it can be considered a good buy.
To make the most of online car insurance comparison sites, insurance brokers and best-buy articles, right coverage is the main concern while sealing a great deal.
Here are some tips to help you choose the most profitable insurance for your car.
Choose Your Insurance Smartly
Like any other financial product, the trick with car insurance too, is to analyze your personal needs, your budget and your driving history, and tailor it accordingly. You have to understand what amenities and coverage you need.
Are you aiming solely at a cheap insurance? Have you weighed the options and made sure that choosing the cheapest option would not affect the coverage you are getting? Is customer service listed under the primary requisites? Ideally, you should choose a company that offers affordable price but does not compromise on the coverage and customer service.
Cheap Car Insurance is NOT Your Perpetual Savior
The most common mistake that people make while choosing their insurance policy is to opt for the cheapest option available. At the price of being underinsured, you might have to end up paying more than what was saved in the first place! The best policy should make you strike the perfect balance between your budget and your coverage needs.
Run a Background Check on the Company for Reputation and Financial Status
Once a thorough list of the companies is prepared, some investigative work to check its financial standing, customer reviews & Claim Settlement Ratio is a must.
Consider Consulting With a Broker or Agent
The difference between car insurance brokers and car insurance agents is that brokers deal with many companies at a time and agents work with only one. Therefore, an agent can help you with best coverage plans and rates from one particular company, whereas a broker can offer you a number of options that have the best rates and coverage. If you have a tight schedule and need the ease and convenience for quote comparison, opting for a broker sounds like the best option.
Check the Deductible Levels
While you are comparing major companies and planning to short list the best ones, look for the deductible levels- the lower the deductibles, higher is the cost of a policy. However, just in a bid to save money on the premium, opting for a higher deductible is not the right choice. You need to understand that higher deductible will mean shelling out higher amount from your pocket at the time of claim.
While considering the comprehensive car insurance, you must consider additional benefits at an extra premium for an exhaustive coverage. Features like Zero Depreciation Cover, No Claim Bonus Protector, Consumables Cover, Engine Protector, etc. prove to be beneficial in a long run.
It’s wise to know that there are ways and means to curtail the premium of your car insurance. No Claim Bonus is one of the primary source to lower the premium. You can earn as much as 50% of the NCB for claim free years. Other factors like Membership of the Automobile Associations of India, installing the anti-theft devices approved by Automobile Research Association of India (ARAI) are few other ways that can fetch you a discount on your own damage premium.
Garage Network for Cashless Settlement
There is nothing more rewarding than the fact that you don’t have to pay towards your car repairs from your pocket. Hence, do check the list of network garages where, if your car is repaired, the insurance company settles the repair costs directly with the garage without involving you. Note that this does not let you evade some compulsory charges you have to bear during the claim.
Following the above steps can take you a long way if you wish to crack the best deal. Your insurance agent may try to sell plans and benefits that may be of no use to you. Just make sure you find the right plan, evaluate your needs and compare the benefits before freezing on any.