Important numbers to keep in mind when buying a car insurance policy.

Buying a car insurance policy can be a little tricky, especially with the number of options you have today. There are dozens of insurance providers and they will all have a bunch of USPs and benefits that sets them apart from others. However, since car insurance is a financial product and financial products are all about the numbers, here are five important digits to remember when buying a car insurance policy that will help ease the entire purchase process.

1. Network garages.

This is one of the most important numbers to keep in mind when buying a car insurance policy. The more network garages an insurance provider has under its belt, the easier it will be for you to access cashless claim in case of an accident.

Don’t settle for a motor insurance plan if has a network garage near your home but fewer network garages in general. This is because an accident can happen anywhere or you could relocate, therefore the key is to have a widespread choice of network garages.

2. Claim settlement ratio.

This is the next most important thing you need to look at when buying a car insurance policy. Claim settlement ratio is the number of claims an insurance company settles with respect to the total number of claims it receives. It could be defined as the number of claims settled per 100 claims received by the insurance company.

Claim settlement rations of all the insurance companies can be found on the net. Insurance companies should mention their respective CSRs on their websites. Additionally, the Insurance Regulatory and Development Authority of India (IRDAI)posts the CSRs of all insurance companies in India every year on its website. So you can easily compare them online, anything above 95 is considered as a good CSR.

3. The premium amount.

 

Lastly, but most importantly, you should look at the premium of the different car insurance policies. Of course the premium will be determined by the add-ons you choose and numerous other factors related to your car. To get a better idea of the premium amount of a car insurance policy, you could try getting instant quotes online. 

You can do this by filling your details on an aggregator site. These sites will then send your information to the various insurance providers who will then start calling you with quotes. If you want more immediate results, you can visit insurance company websites. Most of the better providers will have an instant quote calculator. Just feed in your details and your requirements and it will tell you the premium amounts. Do this across insurance providers to get a fair idea of the market. 

These were 3 of the most important numbers to keep in mind when buying a car insurance policy. A good suggestion is to first understand your own needs before setting out to buy a plan. This will ensure you are able to shortlist plans better. I hope this has been helpful, good luck and all the best.