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Why is the lowest priced car insurance policy different from the best policy?

lowest price car insurance policy

The reality is that affordable plans are not usually the best policies and vice versa, so much so that I want to highlight policy and characterize it as the cheapest and best insurance policy.

Why is the lowest price policy different from the best policy?

 It's easy — third-party policies are the cheapest policies. These are the most basic car insurance type and, therefore, the most affordable. Nevertheless, these policies do not cover your vehicle damages, repair costs, and total damage. They only provide compensation for third party injuries and property damage. Therefore, I agree, third-party plans are certainly not the best available plans, although they are the most economical form of car insurance available.

If you are looking for value and don't want the added protection of a comprehensive plan, then third party car insurance is the cheapest and best option for you. Besides, IRDAI strictly regulates the rates of third-party insurance plans, which ensures that the prices of such policies will be substantially the same with insurance companies. However, since they are the most vanilla form of car insurance, there is nothing to compare per se - you can choose any IRDAI approved insurance company.

On the other hand, if you want more coverage, you have to look at the comprehensive plans. What happens when it gets a bit tricky — so many policies and actions can be compared to find the best package? Let me try to simplify the best plan by exposing some functionality that will only be presented by the best comprehensive policy.

Network garage: The higher the number of garages in the network, the better. Here guarantees that your car repair is easy and hassle-free.

Sound rating: The cheapest car insurance policy will always have a useful review.

Claim Settlement Ratio: Look out for car insurance providers that have a good claim settlement ratio. It will ensure a higher chance of your claim being accepted.

Selection of Add-ons: The more add-ons available, the better and easier it is for you to customize the plan to fit your needs.

There is less exclusion: Each car insurance policy will have its list of exclusions, which is why you should look for a package that offers more coverage for your money.

Convenient procedure: Some plans include applications where you can buy, upgrade and claim with just a few taps. That makes policy operations extremely comfortable to manage. 

How to get the best policy at the lowest possible cost?

Now that you have compared the plans based on the above features, you should have a few options worthy of you. The following tips can be used to obtain them at a low cost.

Buy online: Online car insurance is generally far cheaper than offline policies. The insurance company sells you the plans directly and subtracts intermediaries' costs & other overheads.

Buy long-term plans: Long-term versions of these plans can be chosen. They protect you from annual third-party premium price increases that make annual renewals more expensive.

Voluntary deductible option and low IDV: If you pay a percentage of the claim amount, it is allowable. Pay more amounts and reduce your premium. In the event of a total loss, IDV will benefit you the most from a car insurance policy, lower IDV and you will get a lower premium.

Maximize your NCB discount: Drive carefully and stay away from small claims once you buy a package - this will help you reduce your car insurance premium by up to 50 percent.

I hope this helps you in finding the best plan at the lowest cost. Good luck and safe driving!


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