How to choose the best car insurance company

How to choose the best car insurance company

Car insurance policies are a legal mandate and that is why almost every general insurance company offers car insurance policies. There are, in fact, more than two dozen car insurance companies in the market offering a car insurance policy for your car. Choosing the best company among so many choices is a difficult task. But this task can be simplified if you know how to choose the best car insurance company. There are some simple parameters which help you decide how you can choose the best car insurance company. These parameters are as follows –

  • The coverage benefits offered

Though every car insurance policy offers similar coverage features, there are some add-ons which companies build in the benefit structure. These inbuilt features enhance the coverage provided by the plan. Look for the coverage benefits in the company’s car insurance plans. If you find the benefits more inclusive than other plans, the company is offering you something extra and you should not let it go.

  • Value added features

Insurance companies often compete against one another by providing their customers enhanced value-added features. These value-added features make one company better than the other. The more the features available, the better is the company. For instance, many companies today have adopted technologically advanced measures to expedite claim settlements. You can upload videos and photos of the damage and get your claim intimated and processed easily. Many companies are also adopting live tracking systems to track the driving history of the vehicle. Attractive premium discounts are allowed if the history is safe and without any offences. Look for these value-added benefits when choosing the best car insurance company

  • Claim settlement ratio

Claim settlement ratio of an insurance company is the number of claims the company has settled in a year compared to the total number of claims made on it. A high ratio indicates that the insurance company settles most of its claims. It is, therefore, a favourable sign. So, compare different companies on their claim settlement ratios. The higher the ratio the better the company would be.

  • List of cashless garages

Cashless claim settlements are possible when you get your car repaired at a garage which is tied-up with the insurance company. Such a garage is called a preferred garage and the insurance company has a list of such garages. You should check this list to find out whether your preferred garage or the garage in your locality features in the preferred network list of the insurer. If it does, it would be easier for you to get cashless settlement of your car insurance claims. Moreover, the company’s network should be wide so that you can locate a preferred garage in any part of the country easily.

  • Premium discounts

Car insurance policies offer attractive premium discounts. These discounts help you in reducing your premium outgo to a large extent. Some common discounts which you can find include the following –

  • Discount for making no claims in the past policy year (s) (No claim discount)
  • Discount for being a member of a recognised automobile association
  • Discount for installing safety devices in the car
  • Discount for buying the policy online
  • Discount for choosing voluntary deductible
  • Discount for existing customers of the company, etc.

Though the no claim discount remains same, the rate of other discounts varies across companies. This variation is also an important parameter of choosing the best insurance company. The company which offers the highest discount would be the best as you would be saving on your premium costs.

These five points, when considered, help you in choosing the best car insurance company. Always compare car insurance companies on these parameters before buying or renewing your coverage. If you do so you would be able to find the best company which would not only give you good coverage benefits, it would also make your car insurance experience the best one.

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