How to Choose the Best Car Insurance?

Choosing the right auto insurance policy is a balancing act that often comes down to needs and preferences versus costs. How do you choose the best auto insurance policy for your specific needs? It's possible if you follow a few simple steps, including determining adequate coverage for your situation, a manageable deductible and a carrier you can work with. Here's what you need to know.

Why Do You Need Auto Insurance?

Although it seems like an obvious question, knowing why you need auto insurance helps you to understand your objectives when shopping for an auto insurance policy. Car insurance consists of many moving parts, so knowing what you'd like to get out of the bargain is an important place to start. Here are a few things to consider:

  • You need insurance to drive legally. Most states require at least a minimum level of liability coverage.
  • You want to live up to your financial responsibility if you have an accident. If you cause damage or injury, you could be liable for tens or even hundreds of thousands of dollars in repairs or medical treatment.
  • You want to ensure you have a safe car to drive. Plenty of mishaps can befall your car—accidents, tornadoes, theft. Insurance can help you recoup those losses and repair or replace your vehicle.

Compare the Plans

Once you are sure about the type of car insurance policy you need; it is a good practice to compare the plans from different insurance companies before making the purchase decision. You must compare the plans in terms of the sum insured, inclusions and exclusion of the policy, type of add-ons offered, claim process, deductibles, etc. Choose a plan that is cost-effective for the premium you pay.

Know About the Claim Settlement Ratio of The Insurer

Not many car insurance buyers understand the importance of claim settlement ratio (CSR). You must check the claim settlement ratio before finalising the insurer. The CSR indicates the number of claims the insurer has successfully settled against the number of claim applications they received in one year. It is better to purchase a policy from a company that has high CSR, as it would mean that you have better chances of getting your claim approved.

Check the Claim Process

Buying the insurance policy is not enough. It should deliver when you need it the most – at the time of a claim. So, check the claim process and ensure it is suitable. This will go a long way in providing you with a good car insurance cover.

Choose A Good Insurer

Your motor insurance policy’s value will greatly depend on the insurer that issues it. To get the best plan, look for the best insurance provider first. Your insurer should have a good customer support facility and should also have a healthy claim settlement record.

Options for Flexible Coverage

When looking to buy the best car insurance policy, flexible coverage is of significance as well. As the customer base is very vast, there is no ‘one-size-fits-all’ type of policy. You should select a car insurance plan based on your specific insurance needs. An insurance company that offers the facility of flexi-coverage should be given priority over the others. This implies that if the insurer offers pre-existing packages that it is willing to customise for your needs, you should consider that as a positive sign.

Cost Effectiveness

Although third-party liability-only policies can be bought at low costs, such schemes also offer limited coverage. It is best to buy a plan that is sturdy (in terms of coverage) at a reasonable cost. You can choose appropriate add-on covers based on your situation as well. As indicated above, comparing insurance plans between companies is a great way to narrow down on a suitable plan.