5 Pitfalls to Avoid When You Compare Car Insurance Online

by Bhargav Baweja CMO Marketing

While you can now purchase car insurance online within minutes, with so many insurance providers now offering car insurance, selecting one that perfectly suits your requirement can be challenging.

There are now several portals which provides information about best insurance quotes. Once you have the quotes, you can then go ahead and purchase a policy.  

However, many people comparing insurance quotes online commit some mistakes, especially when they are doing it for the first time. Many times, such mistakes also prove very costly. Here is a list of 5 common mistakes that you should avoid when comparing car insurance online-

1. Selecting the Wrong Car Model/Year of Purchase

While using an online portal for comparing car insurance, you'll usually be first required to provide the make and model of your car along with the year in which you purchased it. Most platforms allow you to select this from a drop-down menu. The quotes you receive abundantly rely on the model and the purchase year you choose.

If you want to make sure that you receive accurate quotes, ensure that you select the model and year of purchase very carefully. Any mistake in these details can significantly affect the premium amount.

2. Going with the Default IDV

When you compare the insurance quotes online, the portal will automatically select the IDV (Insured Declared Value) for the chosen model to provide the best quotes. However, you can also enter your own IDV. The IDV is the maximum amount that your insurance provider will offer in case if your car gets stolen or is totalled.

While you might want to set a higher IDV for safety, know the higher IDV will also mean higher insurance premium. Also, the insurance providers generally have a maximum and minimum limit for IDV based on the model of your car and when it was manufactured.

3. Not Selecting the Correct NCB

If you already have a car insurance policy and want to renew it or switch to another insurance provider, you might have accumulated some NCB (No Claim Bonus) if you haven't claimed in the past year. The NCB can range from 20% to 50% and can help you get a considerable discount on your new insurance.

When comparing car insurance quotes online make sure that you select your NCB carefully to get the most accurate quotes.

4. Not Purchasing Add-on Cover

While add-on covers such as zero depreciation, 24x7 roadside assistance, passenger cover, and others slightly increase the premium, they do offer a host of benefits too. For instance, you can purchase zero depreciation cover with the help of which you will receive complete coverage without factoring the depreciation when you file a claim.

Some insurance portals do allow you to select such add-ons while comparing. Add the ones that you need so that the cost of the add-on is also included in the premium.

5. Only Focusing on the Policy Premium

Most people when they compare car insurance online, solely focus on the premium of the policy and end up buying the cheapest available offer. However, selecting the best policy will require you to consider much more than just the premium amount. 

You should check what is included in the policy, the reputation of the insurance provider, claim process, and other such factors to make the right decision.

Purchasing the Best Car Insurance Online

It is only after thoroughly comparing the insurance policies that you can make the right buying decision. If you want to make sure that you select a feature-packed policy that perfectly suits your requirements and is affordable too, these are some of the most common mistakes that you should avoid.

Most importantly, select a reputed platform for comparing the policies to get the most accurate quotes in a simple and hassle-free manner.

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Created on Mar 5th 2019 04:11. Viewed 450 times.

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