Your Car Insurance Policy Lapsed? Here is What You Should Do

You have just been hit with the sudden realization that your car insurance policy has lapsed. Now you are just scratching your head, wondering what to do next! A lapsed car insurance policy indicates that you have missed the deadline of renewing your four wheeler insurance policy. Not only is it a legal offence to drive an uninsured vehicle on Indian roads, but it also exposes you to the risk of financial liabilities in case the car is involved in an accident.

So what do you do? The first step is to understand the implications of a lapsed car insurance policy.

• For break-in or lapsed car insurance policy, you would require filling in your details again and then awaiting inspection by the surveyor.
• If the policy is renewed within 90 days, you are eligible for the benefit of NCB. NCB or No Claim Bonus is the discount offered by insurance company for not making any claims in the year. It is a great way of progressively reducing your car insurance premium. Read more about No Claim Bonus and its Benefits.
• If your policy lapsed 90 days ago, you will lose the No Claim Bonus. This in turn will lead to higher premiums.

Step-by Step Guide to Renewing Car Insurance Policy

Choose the Insurance Company

Depending on the vehicle’s age and make, you need to find a car insurance provider that provides premium at competitive rates. To find the best insurance for your vehicle, you can contact your previous insurer and enquire about the renewal process. Or else, you can obtain car insurance quotes by other insurance providers to find the best deal.

Get the Vehicle Survey Done

Once you have shortlisted the insurance company that you want to opt for, you needs to get the car inspected by a surveyor. Call the insurer and they will schedule a date on which the surveyor can inspect your car.

Buy the Policy

Once the survey is done, you can buy the insurance policy. Remember to do this as soon as possible. This will help you avoid heavy fines for driving uninsured and save you from the heavy financial costs in case your vehicle is involved in an accident.

If your car insurance policy has lapsed, then renew it as soon as possible. And in future, just keep a reminder and renew your policy on time to avoid subsequent hassles.

If you are looking to renew your policy and get comprehensive coverage against physical damage, bodily injury and cover against third-party liability, then check out our car insurance policy.

[Source: https://support.bajajallianz.com/support/your-car-insurance-policy-lapsed-here-is-what-you-should-do/]

Build a Cover around Your Car

Modern marvels are dominating modern day life and past looked upon luxuries are now more or less termed as necessities. Necessities are usually those entities which go ahead and provide a easier platform for people to do their day to day work much conveniently.

Leisure has been always linked up with rich class but as the definition of leisure started to change, so did the association. Today leisure can be affordable by people of working class and other professionals.

Automobiles were previously considered to be an expensive affair and average middle class people would think over and over again before thinking of buying a car. But now as the spending power of people increased, thanks to the increased income, people have risen up from old beliefs and thus the whole dimension of class associated leisure have come down.

Car is mechanically defined as wheeled, motor fitted and driven self powered vehicle which is used for various purposes including transportation.

These automobiles are designed as land transport and primarily run on roads, accommodating 6-8 people usually. Cars primarily are used to transport people than goods.

Cars are considered to be valuable assets and thus any kind of damage can be fatal and heart breaking. Car insurance is a legally mandatory insurance based investment which is made mandatory by the law. Buying car insurance ensures maximum safeguarding of your car against any accident, damage and so on. The benefits provide cover up the cost which can incur in repairing of car in case of any damage.

Car insurance policies are devised using the right approach and right understanding of the insurance market. Car insurance plans are devised in accordance to the target audience and made sure the right placement of product is done. Car insurance provider pays for any damage which your car may go through in any accident or any other unfortunate incident.

All an insured has to do is make sure he/she pays the premiums towards the insurer on time and avail benefits of the coverage when ever required. A insurance seeker can also go ahead and buy car insurance online using the various insurance based websites. Rate of car insurance is also affected by lot of reasons which includes location, occupation and so on.

Experts advise a detailed comparison of insurance policies provided by insurers in order to find the best car insurance plan as per need and preference. Policyx.com is one such insurance comparison website which helps in providing detailed report of car insurance plans.

[Source: http://www.policyx.com/blogs/build-a-cover-around-your-car /]

Cheap Car Insurance for Teenage Drivers

Teenage drivers have a difficult time finding cheap car insurance. Rates are often thousands of dollars a year for anyone under 25. Statistics show that teenagers are more likely to get involved in a car accident during their first year of driving than at any other time. Young drivers account for 10 percent of license holders, but are involved in over 29 percent of accidents. The good news is that there a few things teenage drivers can do to make themselves more attractive to car insurers and reduce costs.

Factors That Affect Your Auto Insurance Rates

Teenage drivers are more likely to have a car accident than more experienced drivers. Car insurance rates are set according to risk. The cost of your auto insurance policy depends on how risky the insurance provider thinks you are to insure. Insurance companies determine your premiums based on a number of factors such as your age, gender, driving experience, location, driving violations, credit rating, occupation, education, accident claims, and vehicle type. The number of miles driven each year may affect your car insurance rates too.

The age and driving record of your family members influence your premiums as well. Drivers who have been involved in car accidents pay higher rates than those with good driving records. If you use your car to go to school, you will get higher premiums. People who drive long distances or use their cars on a regular basis pay more than those who drive fewer miles per year.

Select the Right Type of Coverage

Many new drivers feel overwhelmed when it comes to choosing a specific type of coverage. Before you start shopping for car insurance, check the minimum coverage requirements in your state. Do proper research and learn about the most important types of auto insurance. This way you will be able to choose the best type of coverage and make an informed decision.

Liability coverage is required in most states. It is recommended to buy additional coverage because the state minimums may not fully protect you from lawsuits. If you purchase insufficient coverage, you will end up paying thousands of dollars from your own pocket in the event of an accident.

Compare Auto Insurance Quotes Online

The most convenient way to find cheap car insurance for teenage drivers is to shop around and compare free auto insurance quotes from different companies. Millions of people are using the Internet to buy coverage for their vehicles. With a few clicks, you can get hundreds of quotes from leading insurers.

When shopping for car insurance, you should determine what type of coverage you need and how much of it you need. Use a quote comparison website to get free auto insurance quotes from national and local insurance providers. Some websites offer free quotes from over 150 different companies.

Applying for free car insurance quotes takes only a few minutes. You will be required to provide a few details such as your age, marital status, zip code, income, driving record, make and model of your car, and annual mileage. As soon as you fill in the application form, you will get free car insurance quotes that suit your particular needs.

Comparison shopping is the most effective way to reduce insurance rates. Using a quote comparison website can save you time and money. It is advisable to compare at least three car insurance quotes from different carriers. Some experts say that customers should compare up to seven auto insurance quotes in order to get the best deal out there. Many of these websites also provide free auto insurance tips, exclusive deals, and informative articles. Some of them feature quote comparison tools, insurance facts, and online calculators.

Get Lower Car Insurance Rates

Teenage drivers can save money on car insurance by raising their deductible or by taking defensive driving classes. Some auto insurance companies offer discounts to those who get good grades in high school. For extra savings, raise your deductible to at least $1,000. If as a young driver you volunteer to pay a higher deductible, you will get lower car insurance rates. Add some money to your emergency fund and maintain a clean driving record. If you have an older car, you should think about dropping collision and comprehensive coverage entirely.

Reduce Your Annual Mileage

If you are on a tight budget, consider taking a limited mileage policy. Teenage drivers who agree to a mileage restriction pay less on auto insurance. The fewer miles you drive, the less likely you are to get involved in a car accident. Insurance companies recognize this fact and offer massive discounts for low mileage drivers.

Be a Good Student

Statistics show that teenagers who maintain at least a B average tend to be more responsible drivers. For this reason, many auto insurance providers offer a good student discount.

Maintain a Good Driving Record

Safe drivers with a good driving record pay the lowest car insurance rates. Maintaining a good driving record can help you save up to 20 percent on coverage. Plus, if you don’t make any claims for at least five years you will get a no claims bonus. Having no points on your license means lower premiums.

Take a Defensive Driving Course

There are several defensive driving courses designed to help young drivers gain experience on the roads. By taking a driving course, you will become a safer driver and pay less on your policy.

Make sure you take full advantage of the current auto insurance discounts. Paying your premiums in one lump sum or getting an additional driving qualification can save you hundreds of dollars on coverage. Keep in mind that anything that increases the value and performance of your vehicle to thieves will boost your car insurance rates. Add an approved alarm to your car, fit additional security devices, and avoid making modifications to your vehicle.

[Source: https://bestcarinsuranceblog.wordpress.com/2015/11/25/cheap-car-insurance-for-teenage-drivers/]

TEN TIPS ON HOW TO GET THE BEST DEAL ON CAR INSURANCE

With the high cost of gasoline nowadays, most new drivers think twice of getting car insurance. Driving without any car insurance is a very big risk. Most drivers might think that car insurance is way too expensive, but in the long run it may save you a lot of money. Take for instance this example, if you are in a car accident it may cost you thrice the amount you might have paid for a car insurance to cover for hospitalization and for buying yet another car. Plus without car insurance you will be paying police fines as well as paying for suspended licenses. A total of 47 states require some kind of insurance for your car. It would be wise to know the basic law covering car insurance.

Here are ten tips you can refer to on how you can get the best deal on car insurance. 1. Know the different types of car insurance policy The first thing to know in buying car insurance is to understand the different policies they offer. Choose a policy or policies that would best suit your needs. Liability - This policy covers physical injuries and damages to property.

This includes paying for hospitalization and other medical expenses. Damage to property includes vehicles and other tangible property that might have been damaged during the accident. Liability also includes expenses for court proceedings if the vehicular accident requires one. Collision – This policy covers any damages if your vehicle is crashed to another vehicle, lamp posts, house or any another objects. Comprehensive – This policy covers damages caused by natural disaster like flood, storm, hail or wind. This also includes damages by theft or vandalism. Medical Coverage – Medical expenses are covered by this policy not considering if the cause is a vehicular accident or not.

Personal Injury Protection (PIP) – A personal insurance of the driver. This policy covers for medical expenses and treatment caused by an auto incident. Uninsured Motorist – If by chance you are hit by an uninsured driver, this policy covers the damages done to your vehicle. Underinsured Motorist – This policy will cover the remaining cost for repairing your damaged car if ever the incident is caused by an insured driver with inadequate liability insurance. Rental Reimbursement – In case of a damaged car due to a vehicular accident, this policy will give a daily allowance for rental fee.

2. Know your credit rating: In most states, credit rating has always been the number one factor affecting car insurance rates. Be sure you have a copy of your credit report and check its accuracy and immediately contest any erroneous information.

3. Motor Vehicle Report (MVR) You can get a copy of your Motor Vehicle Report in your respective Department of Driver Services or Department of Public Safety in your state. A three year record may cost you 5$ and a seven year record would cost you 7$. Like credit reports, verify that all information are correct.

4. Accident Reports you can get a copy of your Motor Vehicle Accident Report from the local police department. It may take around six weeks before you can receive the detailed report. You might need to pay a higher car insurance rate if you have reported accidents within the last eighteen months.

5. Scout for a good insurance package there are some car insurance companies that are offering multi-vehicle discounts. You would get a lower rate if you have two or more vehicles that you want to get insured. Also, you can get a good deal from one company that packages all their insurance policies, including home and health insurance.

6. Check out various discounts Most insurance company offers a discount to drivers over 55 years of age. It always pays to be a good student; you can get a student discount if you have a3.0 point average or higher.

7. Obtain a Driving Safety Certificate It is common for car insurance companies to give certain discounts to those who finish a safety driving course with a very good standing. 8. Check the model of your car Insurance rates can be different from vehicle to vehicle. A fancy car will obviously have a higher rate than an older model. 9. Take advantage of added features be sure you are receiving lower rates for safety and security features like antilock brakes and air bags. 10. How much are you willing to pay Choose the option where you can handle the down payment and the monthly paying scheme.

[Source: http://e-carinsurance.blogspot.in/2014/02/ten-tips-on-how-to-get-best-deal-on-car.html]

7 Types of Car Insurance: Which Ones Do You Really Need?

The cost of even a small repair makes car insurance nice to have. When we start adding in the medical expenses that can go with a car accident, insurance becomes downright necessary. In many states, insurance is even a legal requirement before you can drive your car out on the road. But a wide variety of options are available when it comes to insurance — there are actually seven different types of car insurance you can choose from in most cases — and it can be difficult to decide just what type of auto insurance is the best choice for you, your vehicle and your budget.

1. Liability Insurance

When your state requires that you carry some sort of insurance for your car, they’re usually looking for liability insurance. In the event that you are in a car accident and the police decide it is your fault, liability insurance covers the cost of repairing any property damaged in the crash (such as cars or buildings), as well as the medical bills from resulting injuries. Most states have a minimum requirement for liability insurance coverage that you absolutely must have.

2. Collision Insurance

The biggest problem with carrying only liability insurance is that if there is an accident, you may wind up without the money to repair your own vehicle. A collision insurance policy makes it so that someone else — your insurer — will pay for the repairs to your car. If your car is totaled in an accident, a collision insurance policy will pay out the value of your car. While the payout won’t cover for a brand new vehicle, the sum will equal approximately what the car was worth before the accident.

Collision car insurance comparison isn’t a must-have, as far as insurance goes. If your car is older, it may not be worth paying for insurance, especially if you can work on saving up enough to replace the car if necessary. If you have a good-sized emergency fund, you may be safe without collision insurance. If you’ve chosen a more expensive car or your car is relatively new, however, collision insurance can help you sleep much better at night.

3. Comprehensive Insurance

Liability and collision insurance policies exclusively cover car accidents. If something else happens to your car — weather damage, theft, an animal collision — you won’t be A comprehensive insurance policy is one of those things that are nice to have. However, coverage can be pricey and may not be worthwhile if your car would be relatively easy for you to replace, if you had to. Note though that you can bring down the price of this policy if your vehicle has an anti-theft and tracking devices installed.

4. Uninsured Motorist Protection

Just because the law requires everyone to have insurance doesn’t actually mean that’s the way things work out. Even if a driver has a liability insurance policy, most states have relatively low minimums that may not cover all of the expenses that can go along with an accident. One of the worst things that can happen is that you get stuck with the bills in an accident that wasn’t even your fault.

5. Medical / Personal-Injury Protection

The costs associated with treating injuries after a car accident can be astronomical. In order to cover those costs, medical and personal-injury protection is available. No matter who is at fault, such protection will cover your medical bills along with those of your passengers.

6. No-Fault Insurance

So far, no-fault insurance is available in twelve states. This option covers injuries and property damage, no matter who is ultimately responsible for a given accident. The decision to choose no-fault insurance really depends on what other insurance options are available to you and at what price. Some no-fault policies can be expensive, making it more cost-effective to choose other options, especially if your car is inexpensive to replace.

7. Gap Insurance

If you are still making car payments, gap insurance may be a good choice. It’s meant for drivers who still owe money on their cars and need to pay off the vehicle if it is totaled in an accident. It’s generally a good choice if you owe more on your car than you could easily pay off on short notice.

Gap insurance is especially worthwhile if you owe more on the car than you could get for it if you sold it today, since many insurance policies will only cover the value of

[Source: https://bestcarinsuranceblog.wordpress.com/2015/11/24/7-types-of-car-insurance-which-ones-do-you-really-need/]

Car Insurance and Road Safety

Background Information to Car & Vehicle Insurance

Motor vehicle insurance has been described as a necessary evil – even if you pay cash for a motor vehicle and you are the most cautious of motorists, you are at great financial risk if you drive an uninsured vehicle.

Having a good insurance policy puts your mind at ease as you drive and this in itself is one of the biggest vehicle insurance benefits – peace of mind that should you be in an accident or have your car stolen, you are covered!

Motor vehicle insurance has become an important business and people are getting more curious about how to safe guard their cars and other vehicles against vehicle accidents, damage and theft. 

Basics of Vehicle & Car Insurance

Motor vehicle insurance is essentially a contract in which an insurance company assumes financial responsibility for any loss the insured may incur through damage or theft to his/her vehicle. The bottom line is that you must read your policy and the schedule and make sure that you clearly understand the terminology, terms and conditions, and any exclusion clauses.

Golden rules of car insurance are:

• Know the promise you’re buying: When you buy car insurance you buy a promise. For years or even decades you may pay your insurer to say: “In certain circumstances that may never arrive, I will give you certain things.” You need to be sure of what these circumstance are and what you will gain from the cover.
• Keep the promise you are making: When you buy your insurance you give your insurer much personal information such as your habits and the ways you will use the items you are insuring. If the information is wrong, sometimes even a little bit wrong, the insurer’s promise won’t hold up.
• It is the insurer’s job to pay you what you are due and not more.

Why do I need Car/ Vehicle Insurance?

The South African vehicle hijackings and road crash statistics provide more than enough evidence to the importance of vehicle insurance. Over the last couple of years the cost of repairs has increased dramatically and there has been a significant increase in the average cost of a claim. An increase in vehicle theft, accidents and rising repair costs force insurance companies to recalculate the risk and cost of insuring our vehicles.

If you are an uninsured driver, you alone are responsible for covering the costs of repairing your car or even buying a new one if it is seriously damaged. You will also bear the legal costs of trying to claim damages from another uninsured driver without the assistance of an insurer.

I need Car Insurance - what do I need to know?

The Ombudsman for Short-Term Insurance in his annual report emphasized the need to educate the public on insurance matters. The Ombudsman for Short-term Insurance in South Africa recovered a record amount of R83.9 million from insurance companies on behalf of complainants in 2007.

A staggering 67 percent of the complaints received in 2007 related to motor vehicles. A large number of complaints arose from a lack of understanding of insurance or a failure to understand the significance of the information given to an insurer when applying for insurance.

There are many insurance companies out there and it can be quite tough deciding which to opt for.  Before getting vehicle insurance, it is necessary for you to get a detailed view of different insurance quotes from more than one insurance company. The car insurance quotes may be different for different companies, so it is your responsibility to carefully look into the insurance quotes and then decide which one is suitable for you and your vehicle.

[Source: https://bestcarinsuranceblog.wordpress.com/2015/11/23/car-insurance-and-road-safety/]

How to Buy Cheap Car Insurance

When you buy a car it’s general that you will buy car insurance, but the tricky part is to buy cheap car insurance. Buying cheap car insurance will be easy if you know how to search and compare insurance policy.

Many car insurance companies offer discounted policy, but getting cheaper insurance policy doesn’t mean you get the best car insurance policy. Don’t buy at the first shot, read carefully the total policy conditions; what the policy covers and what the privileges are and compare your policy with other discounted car insurance policy from different companies.

The car owners who are above 50 years old can be the member of the American Association of Retired People (AARP) and the member has to pay only $12.50 a year who is USA citizens. It seems AARP offers heavily discounted car insurance and older people can easily get free online cheap car insurance quotes.

Car insurance premiums won’t lower or discounted for teenage drivers who don’t have driving record. In some cases insurance companies have cheap car insurance for young drivers. Young drivers who pass the recognized driving test can get cheap car insurance or car insurance companies discount for them. Car insurance companies provide car insurance cheap for the good and skilled drivers.

If car drivers have well driving records without any incident it’s for sure that they are going to get car insurance. But being with the same car insurance company again doesn’t mean car owners will get cheapest car insurance, so check what is the policy your current insurance company offers for renew and what is the policy offering from other companies. Compare as many insurance quotes from different policy and sort out which policy has more discount and cheap then other for you as good driver.

Experiencing having car insurance policy car owners may have edit few coverage, so they should check what coverage they need and what coverage are extra while getting renewed the policy. This simple routine check may reduce the insurance premium and if lucky, they can get cheaper car insurance policy then existing one.

If drivers are women, many car insurance companies have special offer for them such as discount or cheaper. When woman driver is going to buy car insurance online, she should first ask free quotes providing detail information and after getting various insurance rates, she can again provide her basic information such as good driving history, driving license and certificate of immediate taking driving test and describe her present situation with the coverage she need. This process may be providing cheap car insurance.

What car drivers don’t know is that buying car insurance often saves their money if they can go the right way. So follow these tips and you can get some idea how to buy cheap car insurance.

[Source: http://bestinsurancestock.blogspot.in/2013/05/how-to-buy-cheap-car-insurance.html]

3 Top Tips for Cheaper Car Insurance

Despite the economic recovery, car insurance is one of the few industries where customers are still seeing rising prices year on year.

In part this is due to the increasing number of young and accident prone drivers on the road, but it’s also because insurance companies are aware that most people will happily auto-renew their premium without checking the details. However, with a few tips and tricks, you can easily get cheaper car insurance.

Haggle

The first and most important step when your new car insurance policy comes through the post is to immediately pick up the phone and start to negotiate the terms.

The rapid rise of insurance comparison websites means that you can arm yourself with a multitude of other quotes in a matter of minutes.

The person in the call centre will be heavily invested through commission to retain your custom, so simply tell them the cheaper car insurance deals that you’ve found and they’ll usually be able to match it or reduce their price.

You can play the more risky game of threatening to leave and it will depend on the person you’re talking to as to whether they’ll simply let you go or will go find a supervisor to knock some more money off.

Drop The Perks

If you’re finding that your cheap car insurance premiums are rising each year, even when you’ve not had an accident, have a look at what additional perks have been added to your policy. Insurance companies are notorious for scaremongering their clients into having more protection than they could possibly need and each level of protection can be charged for.

Typical perks that boost up your premiums include unnecessary levels of medical and legal fee coverage, road side assistance and a courtesy car till you’re back on the road. Regardless of the fact that you can get these perks for cheaper with a breakdown recovery service like the RAC or Green Flag, you’ll still save money by removing these from the policy.

he salesperson you speak to will try to guilt you into keeping them, so make sure you’re focused on the cheap car insurance that awaits you at the end of the phone call.

Have A Higher Excess

Finally, having a higher excess in the case of an accident is a sure fire way of getting cheap car insurance. As a general rule of thumb, you’ll pay an extra £100 in premiums for each £200 less of excess you choose to pay.

Of course, the amount of excess you choose has to be dictated by how much spare cash you have available in the case of an accident, but if you’re a safe driver or don’t do a huge number of miles each year, you should be safe with an excess of £500 which should save you around £200 a year.

[Source: https://bestcarinsuranceblog.wordpress.com/2015/11/17/3-top-tips-for-cheaper-car-insurance/]

Compare Car Insurance Online

Even though, you can do your utmost to keep your vehicle safe, you cannot avoid damages due to some unavoidable circumstances. Auto insurance or car insurance in India can provide the insurer several benefits and can help keep it up and running. In India, third party motor insurance is mandatory under 1988's Motor Vehicle Act. Online car insurance or auto insurance plans provide financial support to the insurer in the event of damages because of accidents, fire, explosion and the likes. At GIBL, you can compare car insurance online and choose the best plan available in India for your vehicle with latest tools and techniques available.

What is covered under Car insurance in India?

·         Third party liability: This online car insurance policy provides compensation for damages caused to third party vehicle due to your fault.

·         Accident coverage policy: The coverage is against all types of accident that cause damage of your insured vehicle.

·         Comprehensive coverage policy: This is one of the most profitable types of auto insurance policy. In this online car insurance policy, thefts or accidental damages are compensated. Moreover, the policy also provides coverage for personal accidents.

Why should you compare online car insurance plans?

All auto insurance companies in India provide plenty of benefits at a reasonable price. GIBL's comparison site brings forth all those renowned insurance providers to facilitate a flawless car insurance comparison experience in car insurance. Here, you can compare car insurance features of various insurance policies and buy the best car insurance online the best possible plan that suits your requirements and budget. As a consumer you can rightfully gather knowledge on various car insurance online policies available in the market and understand what is covered and what's not. GIBL's blog posts and articles can help you understand the terms and clauses of online car insurance policies in a better way.

Benefits of choosing Car Insurance policy from GIBL

·         Get best quotes of top car insurance in India

·         Insurers can avail information about newly added benefits

·         Latest information on offers and discounts to assist you save money on annual premium

·         Get the best car insurance comparison within few minutes

·         Purchase motor insurance plans online instantly

·         Free consultation with GIBL's auto insurance experts to get most comprehensive car insurance policies

·         Get the best comparison rates directly from the insurer

·         Availability of support and reminder service for renewal of car insurance

Car Insurance Renewal

When the time of your car insurance renewal comes, it is best to reconsider your existing auto insurance company. You should assess if the plan was able to deliver all the promised benefits or not. If you are unsatisfied you can choose not to renew your current auto insurance policy; instead you can search and find better car insurance in India and opt for the one that is worth spending your hard-earned money. You have to renew your car policy as per the expiry date of your policy. GIBL offers unique renewal facility online to facilitate policyholders' quick renewal just by submitting policy details and making payment. It takes just a few mouse clicks you to renew your motor policy from the comfort of your home. When it comes to car insurance in India, GIBL is your one-stop solution.

[Source : https://bestcarinsuranceblog.wordpress.com/2015/11/10/get-the-best-car-insurance-renewal-plans-online-in-india/]

Car Insurance

Basis to Choose Best Car Insurance Policy

If you have bought a new car it is mandatory to buy a motor insurance policy. And for existing motor insurance policyholders it is important to renew it in time. Motor insurance is portable –you can shift to another insurance company without losing any benefit you are eligible for.

Most motor insurance policies that are available in the market are similar hence it becomes difficult to choose the best for oneself. However, you can base your decision on certain factors such as brand, policy coverage, customer service, distribution and access, and price.

Brand: This is one of the most important parameter that distinguishes one insurer from another. One can easily check the past record of an insurance company on various parameters such as claim settlement and time taken for claim settlement on their website.

Coverage: It is important to choose the right insurance cover that suits your requirement. A standard car insurance, commonly referred to as motor package policy, consists of a third party liability cover and an own damage cover. Third party covers is mandatory by law for every vehicle plying on road and own damage cover is optional. However, it is advisable to buy both the covers.

Customer service: Now many insurance companies have started focusing on Over the Counter (OTC) issuance of policies. Agents are provided with technology to ensure faster delivery of motor insurance policies. Apart from this, some companies have been able to demonstrate significant reduction in turnaround time for other service requests like endorsements for effecting any change in an existing policy and cancellation of policies among others.

To make the claim settlement process fast and stress free for customers, in case a vehicle meets an accident, many insurance companies have tied-up with garages for cashless settlement of claims.

Distribution and access: Sometimes, it is observed that one is not aware of whom to reach out to in case of any difficulty. In such a situation, a wide network and multiple distribution and communication channels have become the need of the hour for insurers.

Price: Premium is also an important criterion to buy a motor insurance policy. But your decision should not solely depend on this factor alone. The premium of a car depends on its Insured Declared Value (IDV) and the rate multiplier which is decided by the insurance company. Generally, the model of the vehicle and geography are the two most important factors which decide the premium rate.

[Source: https://www.policymantra.com/blog/basis-to-choose-best-car-insurance-policy/]

Car insurance will become cheaper, but there are still problems with the cost of cover

Great news for motorists – the Competition and Markets Authority is going to ban exclusive pricing deals between motor insurers and price comparison websites. Why is that good news? It could cut the cost of a typical policy by £20, experts reckon.

The CMA revealed this morning the results of a three year investigation into the £11bn motor insurance market.

It criticised the cosy pricing deals and warned that they prevented insurers from selling their policies more cheaply elsewhere.

More than half of all new car insurance business goes through price comparison websites, and up to 90 per cent of it is priced according to the restrictive deals.

“There needs to be improvements to the way price comparison websites operate,” said Alasdair Smith, the CMA’s deputy panel chairman. “They certainly help motorists look for the best deal, but we want to see an end to clauses which restrict an insurer’s ability to price its products differently on different online channels.”

It has ordered the agreements to end which is likely to happen by early next year, unless there is an appeal by the industry.

Steve White, chief executive of the British Insurance Brokers’ Association, welcomed the ban. He said: “We are pleased that the CMA is outlawing anti-competitive ‘wide’ most favoured nation (MFN) parity clauses as these are detrimental to customers.”

But the insurance industry criticised the CMA for not introducing price controls on the cost of courtesy cars for drivers involved in accidents, a move that had been widely expected.

James Dalton, head of motor insurance at the Association of British Insurers, said: “The fact that the report fails to do anything to address the excessive costs of replacement vehicles – a problem that the CMA itself identified – will be a bitter pill to swallow for honest motorists.”

Meanwhile Janet Connor, managing director of AA Insurance, said: “While of course we welcome any measures that help to contain consumer costs and improve transparency, 

there remains much greater scope to reduce costs by continuing to tackle the tide of insurance fraud. For example, attempts to exaggerate or make false whiplash injury claims cost up to £90 per policy. This remains a considerable burden on insurance companies but it was outside the remit of this enquiry.”

[Source : https://bestcarinsuranceblog.wordpress.com/2015/11/07/car-insurance-will-become-cheaper-but-there-are-still-problems-with-the-cost-of-cover/]