A lot of thought goes into buying a new car. Before making a purchase, we spend considerable time researching on the different makes and models and comparing its prices and features. Sometimes we don’t even mind shelling out a bit more than what we had originally planned to get our dream car. When this much time and effort goes into selecting the right car, it is equally important that we financially protect ourselves in case of some unfortunate incident. For this very reason insurance companies have come up with motor insurance plans aimed at financially protecting the policyholder in the event that his or her vehicle suffers damage in an accident or gets stolen.
Given that there are several kinds of motor insurance plans in the market, it can get quite confusing to determine which insurance plan is the most apt. To help you find the best car insurance plan, we have listed down some key factors you need to take into consideration:
As with any other kinds of insurance, compare the quotes of car insurance policies offered by insurers. However, do not simply shortlist those that cost the least. That is a big no! You also need to take into account the benefits you get from the costs you are incurring. There are several online insurance aggregators that help you compare the costs and benefits of insurance policies. Such website where you can compare car policies and get up to 40% off on premiums.
Many simply consider add-ons a waste of money and avoid it altogether. However, you can avail several benefits by paying a little more on your car insurance premium. Some of the different kinds of add-ons include:
- Zero Depreciation – With the zero depreciation cover, you can receive full reimbursement of damaged vehicle parts in an accident.
- Roadside Assistance – In case your car breaks down, the motor insurer will help with the arrangement of mechanical repairs to make the car drivable again.
- Engine Protection – Repairing a damaged engine is costly but with the engine protection cover your car insurance company will take care of the costs.
OPT FOR VOLUNTARY EXCESS
Excess is the pre-determined amount that an insured individual has to pay before the car insurance company makes the payment. When a claim comes up, the policyholder has to pay the excess amount from his or her pocket and the rest will be taken care of by the motor insurer. Unlike compulsory excess, voluntary excess is optional – the policyholder willingly absorbs part of the cost. Opting for voluntary excess can help you bring down your car insurance premium since you are sharing the risks with your motor insurer. The discount on insurance premium can go up to 30%.
CHECK PERFORMANCE REVIEWS OF MOTOR INSURERS
Before deciding which policy to buy, look into the motor insurer’s claim settlement ratio. The claim settlement ratio will tell you the number of claims the car insurer has settled from the number of requests it has received. A high claim settlement ratio shows that the motor insurer is more likely to honour claims. Consider the claim settlement ratio at the time that you are comparing the costs and benefits of different insurance policies. Besides the settlement ratio, you must take into account the settlement time.
AVAIL NO-CLAIM BONUS
When you look out for a car insurance plan, consider those that come with no-claim bonus. Insurance companies reward policyholders who do not lodge a claim during the tenure of a policy. With the no-claim bonus, insurance companies can offer you a discount on premium of 20%-50% on your next renewal. If you decide to sell your car and buy a new one this no-claim bonus can be transferred to the new policy for the new car.