How to Evaluate Car Insurance Coverage Prices

Figuring out the correct car insurance can be a perplexing task, especially with so many car insurance companies dwelling in the Indian market. In order to evaluate the perfect policy for your car, you first need to adequately understand the factors that affect your car insurance rates.

Every car owner gets affected by the amount that insurance companies charge to insure their vehicle. The factors that mainly affect your car insurance rates can be summed up as:

  • Driving history,
  • Record of paid out claims,
  • Credit report,
  • Where you park your car

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However, there are always exceptional situations wherein the car insurance costs increase inspite of you having a clean driving history or even if you park your car in a safe garage. This might be due to the financial status of the insuring company. If the company from whom you have purchased the insurance is in financial difficulty, it will try to revive the funds by charging its customers with higher rates of premium.

Therefore it is very important to perform a background check and evaluate the coverage and rates offered by different car insurance companies before buying or renewing insurance policy for your car.

WHAT REQUIRES EVALUATION?

A number of insurance aggregators have come up in the market which helps you to compare and decide on the insurance that is best suited for your car. However comparing premium rates is not enough. You need to consider a few other factors during the process of evaluation to get to the correct policy.

The first thing that you need to check out is the insurance company that you are targeting to do business with. The money that you are investing on your car insurance will hold value only if the insurer pays you when a claim is made. You will definitely not want the company to turn down your claim due to dearth of funds during an emergency. This is the reason you need to find out the financial stability of the company, that is whether they have enough assets to pay your claims during accidents or other liabilities. You can find out about fiscal strengths of car insurance companies from various rating sites. Their claim settlement ratio of the company can give you an overview of whether or not it has the capability to settle your claims.

The type of insurance coverage being offered also plays a major role in deciding whether to sign contract with a certain insurer or not. Get a detailed outline of all the risks and liabilities being covered by a particular policy before investing in it. Also consider the additional benefits, such as roadside assistance or travel concierge services, discounts, etc. being offered by the carrier.

The next and the most important thing to be scrutinized are the rates of premium that different car insurance companies are offering for your vehicle. The best way to get your hands on the most affordable premium is through comparison. You can get premium rates from insurance brokers, websites of the insurance companies or through insurance comparison sites. Insurance aggregators are the best option here as rates provided by company sites will mostly be biased and brokers are required to be paid a commission that increases your expenditure further. Insurance guidance and premium comparison services are provided by these comparative sites for free and the data projected before you is transparent and unaltered. Hence, comparing quotes at the time of purchase or renew of car insurance can help you save a lot of money on the premium.

However, there is one thing that needs to be kept in mind while making a choice of car insurance policy. Do not judge a plan only by its low price. In many cases, a lot of risk coverage is compromised in trying to the rates low. Car insurance will not be of any use if it does not cover all your liabilities.

If a you have a good understanding of all the above factors and is cautious about the coverage and terms and conditions, then you can always get the best as well as the most affordable car insurance policy.

Speak now with a licensed insurance specialist
Call Toll Free 1800 123 4006 / 1800 123 4003 Or Get Quotes