What to look for when comparing vehicle insurance quotations.

shivani by shivani kapoor

Published Mon, Aug 21st 2017, 11:27 | Finance


Nowadays people spend time comparing things like their children’s marks, they compare each other’s appraisals and some even compare newborn babies to their parents. While this might make for light banter, it doesn’t really benefit anyone. Instead, one thing that’s totally worth and very important to compare is vehicle insurance. Some people think that since motor insurance is mandatory, going in for the most affordable plan is the best option. However, just spending a day or two to compare quotations can see you save loads of money and get a comprehensive motor insurance that will protect you and your vehicle from the perils of Indian roads.

If you are not sure what to compare when choosing insurance policies, don’t worry! This article will help you with a few things you can base your comparison on that will help you get a decent insurance policy for your vehicle.

The first factor is the insurance company’s clam settlement ratio. Yes, before you even compare insurance policies it is very essential to compare insurers. A claim settlement ratio is the number of claims settled per hundred claims made. Most insurance companies display their claim settlement ratio on their website. You can also access the IRDAI’s annual report to find the claim settlement ratios of all the various insurance companies in India. Ideally, you should go for an insurer with a ratio of 97 or higher. The next thing you need to check about an insurance company is the solvency ratio. This is basically an insurance company’s assets minus its liabilities. It helps a potential customer understand how financially viable the insurer is in the long term.

Then look for the features the vehicle insurance company provides. Some companies have over 4000 preferred where you can get your damages repaired without any hassles. Some companies offer roadside assistance & a towing facility. These facilities can be very, very helpful when you are stranded on the highway or your car breaks down in an alien city.

The best way to compare insurance companies is through reviews from other customers. Ask around, your neighbors, relatives, friends & family, you can even refer to the many vehicle insurance aggregator sites that will have reviews regarding the varying insurance company and their policies. Read-up about the customer service, after all, you want someone who is genuine there to help in the case of an accident.

Once, you’re sure about the insurance company you want to go in for, it all boils down to the price. This is when you compare the premium amounts. See which company is giving you more ‘bang for your buck’ in other words, which policy gives you the most features for the least price. Another great tip is to compare quotations online. When you compare and purchase Vehicle Insurance online, you can easily save up to 30 to 40 percent in terms of premium cost.

So there you have it, some basic parameters to compare motor insurance policies. Remember, on Indian roads, you are exposed to extreme driving conditions, so it’s always wise to completely protect yourself and your vehicle from these perils and the best way to do this is selecting a good insurance policy.

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