It is necessary to compare the auto insurance policies as it can save a substantial amount of money and give you better coverage options. Unlucky, with so many choices currently available in the auto insurance market, it can be quite difficult to know which products to choose. Understanding some basic facts about the insurance market can help you to make informed decisions.
However, comparing the auto insurance policies manually can be a daunting task. But, when you compare quotes you can save up to 50% on auto insurance premiums along with getting add-ons like riders and benefits on your plan. Make an informed purchase.
Compare online and know your auto insurance plan properly before buying.
Online auto Insurance Coverage
There are primarily 3 types of auto insurance:
1. Third Party Liability CoverageThird Party auto insurance provides cover against any legal liability to a third party caused when you are at-fault driver. It covers damage/injury caused by you to another person/property. A Third Party Liability cover is legally mandatory in USA under the Motor Vehicles Act.
2. Collision CoverageCollision coverage protects the insured financially against damage of their own car. It pays the insured for damage caused by collision which is usually an accident. Damage or loss due to theft or vandalism is not included in collision coverage.
3. Comprehensive CoverageA comprehensive coverage is extensive and includes damage of car, theft of vehicle, third party legal liability and personal accident cover. The policy coverage can be further extended by opting for add-ons like accessories cover, engine protector, zero depreciation cover, medical expenses, etc. This type of coverage is the most popular as it offers end-to-end coverage and thus less stress for the policyholder.
People mostly purchase fully comprehensive auto insurance policy as it covers all types of cases like theft, accident and other damage. It is an expensive policy but whenever you go to buy this one you should try to get 100% security for your vehicle. Third party insurance is cheapest than others and it offers coverage only if you’re at fault and hit other party. It is the best option in case you owned an old vehicle.
What is not covered in auto Insurance?Following features are usually not covered in auto insurance:
- Loss or damage if a policy is not in force.
- Gradual wear and tear of car and its parts.
- Loss or damage to vehicle when driven by person without a valid driving license.
- Loss or damage to vehicle as a result of intoxication due to drugs, alcohol etc.
- Loss or damage to engine as a result of oil leakage.
- Loss or damage to vehicle as a result of abuse of car manufacturer's guidelines.
Eligibility Required for auto Insurance Getting a auto insured requires minimal documentation. For a new policy, you must submit the filled up proposal form and copy of the Registration Certificate (RC). For renewals, you will need copy of the RC (Registration Certificate) along with the copy of previous insurance policy.
Carefully fill in your complete details. This is an important step and will save you a lot of hassle during claim time.
Tips and Trick to Compare Auto Insurance OnlineWhen you comparing the auto insurance policies, you have to fill a few simple details like make of the car, model, variant, year of manufacture, etc. You will then get quotes from various insurance providers. To get better discounts you must fill the form carefully. This way you will get customized quotes, one which saves money (upto 50%) on premiums and is also the best fit as per your needs.
You must be familiar with the following terms while filling the form:
- Car Make, Model and Variant
This information is critical to calculate base premium. Luxurious, powerful and expensive car will attract more premiums. For e.g. a SUV car will always have a higher premium than a family car.
- Year of Manufacture
The manufacture year of your car lets the insurance company assess its Insured Declared Value (IDV) that facilitates the underwriter to decide the annual premium for your car.
- CNG Fitted Car
Being more vulnerable to combustion, a CNG fitted car is usually insured at a slightly higher premium than a plain petrol/diesel car.
- Additional Covers
You need to mention whether you do or do not want to get a cover on electrical and non-electrical accessories fitted in your car. Most insurers provide a cover for your car accessories at an additional premium of 4% on its value.
For every claim free year, the insured is rewarded with discount on the renewal premium. This discount is called - No Claim Bonus (NCB). It is cumulative and increases every year. It usually ranges from 10% to 50% and can save a substantial amount of money on your premium.
There are so many options available in today’s auto insurance market that it would be quite time consuming if not utterly impossible to make the “perfect” choice. However, understanding the market and the variables over which you have control will assist you in making a smart decision. Take the time to consider your options and you will find auto insurance that works well for you.
