An auto insurance quote is the estimated insurance premium price an insurer offers based on various factors. Comparing auto insurance quotes from different insurers is precisely what you need to identify the plans offering the best insurance at a reasonable price.
If this is not enough, auto insurance quotes can help you identify reliable companies by reviewing vital parameters like claim settlement ratio, ease of claim filing, etc.
By comparing auto insurance quotes, you will certainly buy the most reasonable car insurance policy, understand the impact of various add-ons and know the extent of the coverage. It also ensures you make an informed purchase decision.
With that being said, below are some of the things that will affect the auto insurance quotes you get.
Insured Declared Value (IDV)
Insured Declared Value (IDV) is the current market value of your car determined by the insurance company. The insurer determines the IDV by subtracting its depreciated value from its original selling price. In most cases, your comprehensive car insurance price will be lower if your car has a low IDV.
Thereby, you need to follow the guidelines set by the IDV to ensure you are optimally protected. That’s because even if you have a higher IDV, the insurer will settle the claim as per the rules set by the IRDA regarding the same.
Car Model
A car designed to provide great speed and driving performance can pose greater risk than an economical vehicle that offers fuel efficiency. Consequently, your insurance company may charge a higher premium for a performance-driven car with great engine power than a modest family car with lower engine power. Be sure to factor this in the next time you decide to get and compare auto insurance quotes.
There is more to comparing auto insurance quotes than what is merely included in this simple guide. From geographic location of residence to add-ons, you need to be fully aware of what is expected of you before shopping around for auto insurance quotes. It is then that you can enjoy money-saving benefits.
