hen it’s time to renew your car insurance, many thoughts may be running through your mind, such as whether to stay with the same insurer or compare car insurance plans from different companies to see if you can get a better deal. It’s always a good idea to shop around and gather quotes from different companies. Comparing them can be beneficial as you can negotiate the premium with your current provider by showing them the quotes you received from the market if you choose to stay with them. On the other hand, it could also help you switch to a better plan from another company. In summary, don’t renew your policy without comparing options, investigate your options and it’s not necessary to stay with the same provider unless you have add-ons in your policy that can only be benefited from your current provider. Now, let’s understand the basis on which you should compare car insurance plans.
- Compare for premium: One of the most obvious reasons to compare insurance plans is to find a good deal with the cheapest premium available in the market. Compare online on insurance aggregator sites to get free, unbiased comparison at a single web location.
- Highest IDV: Especially for high-end cars, owners want to get the highest IDV (Insured Declared Value). IDV is the highest value recoverable from the insurance company in case of total loss. When your car is expensive, you should go for the company offering the highest IDV.
- Lowest IDV: Similar to highest IDV, companies have a cap of lowest IDV too. When your car is old and saving on premium is your primary goal, in such case look for insurers willing to insure your car at the lowest IDV. As premium increases with the increase in IDV, you have to compare plans based on the lowest IDV a company will insure your car at when looking for insurance for an old or cheap car.
- Maximum cashless facility/garage: Similar to Health Insurance, cashless claim facility is gaining popularity in the car insurance space. Insurers boast of the quality of their partnerships with various car garages where you can send your car for repairs and not pay upfront. When comparing based on plan quality, ensure that the garages near your area are part of their network.
- Free Add-ons: Some companies offer free add-ons to enhance the quality of their car insurance policies. Careful research will tell you about the companies offering such plans.
- Maximum add-ons: Not all car insurance companies offer all the add-ons listed above. Go for companies that offer the add-ons you need and at reasonable rates. Compare premiums after including the add-ons to see how much extra you end up paying and evaluate the added cost against the benefits expected from such add-ons.