How to choose the best Cheap Auto Insurance Online?
If you are looking for cheap auto insurance options online, you need to do your due diligence and choose carefully from an array of insurance plans available in the market. It is not an easy process to select the best plan out of so many options. We will help you get there by answering three important questions; How to start looking for auto insurance? what determines the price of an insurance plan? and finally how to compare online auto insurance plans.
How to start looking for Auto Insurance?
- Assess your requirement
- Compare online auto insurance plans
- Check claim data of the insurer
- Check the network of garages
- Check the renewal process
Assess your requirement
It is important to first assess your requirements before you choose an insurance plan. If your focus is only on low premium plans and not on the coverage, you are making a mistake. The cheapest is not always the best. Look for cost-effective plans that offer good coverage at an affordable price. There are two types of insurance coverage available; third-party insurance and comprehensive insurance. You can easily get all the information online and choose one that suits your needs.
Compare online auto insurance plans
Look for the top 10 car insurance plans online and you will get a fair idea of what parameters to compare. You can easily compare quotes online by entering your requirement and will get to know the best cheap auto insurance for your vehicle. The comparison also helps in giving an idea of discounts and add-ons offered by various plans. Online comparison is a transparent way of getting information and you get access to customer reviews also.
Check claim data of the insurer
Claim data is easily available online and tells about the claim handling process and claim settlement ratio of the insurer. A high claim settlement ratio ensures the reliability of the insurer. Also, check the time taken in handling claims. The company should be able to pay when you need the claim.
Check the network of garages
Every insurer has a network of garages that offer cashless repairs to insurers’ customers. Make sure that your insurer has a wide list of network garages where you can avail of cashless claims.
Check the renewal process
The renewal process should be most hassle-free and as important as getting new insurance. You should be able to renew your auto insurance online with just a few clicks.
What determines the price of your auto insurance plan?
Following are some important factors that determine the price of your insurance. Understanding these factors is important to know how to choose car insurance and how to negotiate with your insurer.
- Type of Cover –
Your premium depends on the type of cover you have, third party or comprehensive. In the case of a third-party auto insurance premium depends on the capacity of your vehicle and is decided by IRDAI. In the case of comprehensive cover, there are many factors that determine the price of your auto insurance plan and therefore, the premium is higher as it not only covers liability but own damage with additional coverage for personal accidents.
- No Claim Bonus – It is the discount you get on premium for not making any claims throughout the year or period of your annual policy.
- IDV –
Insured Declared Value is the current market price of the vehicle. Your insurance premium is directly proportional to your IDV. All insurance companies let you choose IDV in a specified range keeping in mind the current market price. If you lower the IDV to reduce the premium you will be reducing the coverage also which might result in loss of value as you will get reduced compensation in case of theft or damage. So never reduce your vehicle’s actual IDV.
- Class of Vehicle –
Class or type of vehicle determines your IDV. So having a sports car or a luxury car will cost you higher premiums.
- Cubic capacity –
A car’s engine capacity and top speed also play a crucial role in determining the premium as it will decide the impact of collision or extent of the damage if met with an accident.
- Vehicle’s Age –
A vehicle’s age determines the final insurance price. A new car has a higher IDV(Insured Declared Value) and a higher premium. A new car is expensive to repair so comprehensive coverage is needed. On the other hand, if you have an old car and you need insurance just to be able to drive legally, third-party auto insurance may suffice.
- Make and Model – Make of a vehicle is its brand or the manufacturer. This affects premiums because insurance companies keep a track of the number of claim requests for a particular brand’s vehicle. The model of the vehicle also plays a role as every model has specific features, fuel types like petrol, diesel, and CNG.
- Anti-theft devices – If your car has an anti-theft system installed as per the list of the Automobile Research Association of India (ARAI), you can get a discount on the premium.
- Car Modifications – Vehicles that are modified for handicapped, blind, and mentally challenged persons get a discount on the premium.
- Deductibles –
It is part of the claim that the insured pays from his pocket. Deductibles are of 2 types: compulsory and voluntary. Compulsory doesn’t have any impact on the premium as the premium is calculated considering other factors. Voluntary is when the insured chooses to pay a part of the claim to reduce the premium. At the time of settlement, both deductibles are deducted from the claim amount. The compulsory deductible is calculated according to your engine capacity.
- Add-ons in the policy –
Add-ons that you add to your plan increase the premium. The additional cost is nominal compared to the benefit you get out of the add-ons.
- Purpose of a vehicle – Insurance plans are different for different usage and so are premiums. For private vehicles, premiums are lower due to lower risks and on the other hand for commercial vehicles, it is higher due to higher risk.
- Geographical location –
Geographical location also impacts your premium. If you stay in a small town with less traffic, premiums will be lower and if you reside in a metro city with busy roads, premiums are higher as the cost of repairs and probability of damage is also high.
How to Compare Auto Insurance Online?
Online comparison is the most convenient way to compare insurance quotes if you want to find the best auto insurance. It is a hassle-free and quick way to find a product that suits your needs. Compare the top 10 car insurance policies in India either by visiting their individual websites or by visiting platforms that compare insurance companies and you will find parameters to look for such as,
- Price – While comparing the price also consider the coverage offered at that price.
- Coverage – Choose a plan that offers maximum protection at a reasonable price.
- Customer service – Timely customer support is very important. This is what you are paying for.
- Customer reviews – Always check customer reviews to get an idea about the after-sales service and overall experience of existing customers.
Evaluate your requirement, invest time to find car insurance tips in India and research your options well and choose the best online auto insurance available.