Car Insurance Online: How To Buy; Compare And Evaluate
Car insurance is a contract between you (the car owner) and the insurance company that offers you cover against financial losses in case of a vehicle’s accident or theft. In return for the premium paid, the insurance company agrees to pay your losses as outlined in your policy.
Car insurance offers coverage for:
- Property – such as damage to or theft of your car
- Medical – the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses
- Liability – your legal responsibility to others for bodily injury or property damage
Benefits of getting a car insurance:
Car insurance offers you protection against the following situations:
- Coverage against loss/damage to the vehicle insured
- Accident cover
- Coverage against damage/loss caused by theft, fire, self-ignition, accident, strikes, accidents, lightning, terrorism and natural calamities
- Coverage against financial liability caused by death/injury of a third party
What to compare before getting a car insurance
Since there are a number of insurance policies in the market, it is always advised to compare all the policies available and go for the one that best suits your requirements.
These are some of the things that you must compare before getting car insurance:
- Requirement of your coverage – Before opting for any car insurance, it is a mandate that you thoroughly compare and take a note of the various benefits and kind of coverage the policy offers.
- Compare the coverage option – The coverage that is given in all the policies varies from the comprehensive policy. The limit of the plan differs from plan to plan.
- Compare the Insured Declared Value – Insured Declared Value (IDV) is the current market value of the vehicle minus the depreciation on its parts. The different rate of IDV’s reflects different rates of premium. The rate of depreciation depends on the age of your car, meaning older the car, higher the depreciation and lower the IDV.
- Compare the Insurer’s Claim Settlement Practice – Every person who has an insurance policy expects a hassle-free claim process and smooth investment method the insurer plans to invest in. Each insurance company has their own procedure, thus it is important to compare all the protocols before settling the insurance plan.