How to Compare Auto Insurance
Comprehensive insurance provides comprehensive coverage for your vehicle. Protects against any increased risk of loss due to theft, damage to the vehicle, injury or death to the driver and/or passengers in the vehicle, and loss caused by the vehicle to other persons or their property.
Third party insurance covers only damage caused by the vehicle to other people or property.
The premium policy for a new car is based on the sale value of the car. Whereas, the policy premium for an old car is based on the Insured Declared Value (IDV). The IDV is nothing more than the depreciated value of the vehicle. This value is agreed by both the insurer and the policyholder. Generally, insurance companies have a predefined list of vehicle IDVs, by make, by model, and by year. However, the conditioning of the vehicle will determine the final IDV.
The insurance company is not responsible for indemnifying if the driver was driving with an invalid driver’s license at the time of the accident, or for damages occurred under the influence of drugs or liquor, riots, civil war, etc. If a private car is in an accident while being used as a taxi, the insurance company is not required to compensate.
Auto insurance is generally sold at competitive rates. Before taking out Car Insurance, the following factors must be taken into account:
No Claim Bonus: If the car owner does not make any claims on the auto insurance policy in one year, the insurance company gives a premium discount in the following year. This discount is called the No Claims Bonus. The policy holder obtains a discount of up to 20% for no claims in the first two years. This discount percentage will increase in the following years as long as there are no claims. The opposite is also true. If a claim occurs in two consecutive years, the premium will increase. The no claims bonus clause should be read carefully before finalizing an auto insurance policy.
Memberships: If the vehicle owner is associated with a recognized automobile association, the owner will get a premium discount. If the vehicle owner installs a burglar alarm or any protection device in the vehicle, then he is entitled to an additional discount on the premium. The anti-theft device must be authorized by the Automobile Association itself.
Special discounts available for people with disabilities, available or not: Certain companies offer special discounts on premiums for people with disabilities.
To make use of this discount, the vehicle must have been modified for the use of the disabled person. Different insurance companies offer various discount rates. If you are using such a vehicle, compare discount rates before purchasing auto insurance.
Easy renewal procedure: In addition to monetary factors, check to see which company offers simple and easy paperwork for renewal and claims.
