If the word car-insurance stirs up some sweet or unpleasant memories in you, chances are you are either in the company of a right insurer or in need for a change. While digitalisation has revolutionised the whole process of insurance into a reasonably simple activity, there are still many nuances to it than what meets the eye. The part of buying an insurance policy is easy; it’s choosing the right company that is difficult. Here are 10 parameters to judge your next insurance company.
- Claim settlement ratio – Claim settlement ratio is the ratio of the total number of claims accepted to the total number of claims submitted to them. A higher claim settlement ratio means the company settles most of the claims that are submitted to them, and very few are subjected to rejection. Thus, if you were to submit a claim with them, there is a higher chance that it would get accepted. A high claim settlement ratio is important because if your insurance company is going to reject your claims on unnecessary grounds, then all the premium that you have paid will go to waste.
Read more : What Is a Claim Settlement Ratio?
- Customer care availability – If you get into an accident, then you must call up your insurance company to intimate them of this event. If the company doesn’t have a 24×7 customer care to guide you through the process, or if they are not responsive, then you might catch yourself in a pickle situation. Only once the company receives information about your accident can they send in an investigator to survey the damages or else send you a link to upload the pictures. A fast and diligent customer care service is impertinent to the workings of an insurance company.
- Buying and claiming process – The Internet has revolutionised every nook and cranny of the world. Insurance too, has taken their seat in the digital world. Buying a car insurance policy is now easy and is only a matter of minutes. The whole process of claiming the insurance policy too has been revolutionised digitally. The pre-era of the internet will have you running around with tons of paperwork. If your insurance company still hasn’t made this change to a digital platform, it is time to re-evaluate it.
- NPS score – Net Promoter Score calculates the willingness of a customer to recommend a company and its services. It is measured on a scale of -100 to +100. Customers are asked to rate the company on a scale of 1 to 10. This is then transferred into a percentage amount categorising the customers as unhappy Detractors, Passivers who are satisfied but can jump ship to other companies, and Promoters who are loyal to the company. The higher the NPS score of the company, the higher amount of satisfied and loyal customers it has.
Read more : NPS Score and calculation
- The network of cashless garages – Cashless garages facilities is a nifty little feature that allows customers to get their vehicle repaired at garages that have a tie-up with the insurance company and get the bills paid directly from the company. The company will pay the IDV amount to the garage directly, so you won’t have to go through the hassle of paying upfront and then get the amount reimbursed from the insurer. If the insurer has an extensive network of cashless garages, it not only helps customers avail this handy feature easily, it also cements the credibility of the company.
- TAT for claim settlement – Turn Around Time for a claim settlement refers to the time duration for settling a claim after it has been filed. A reduced turnaround time for settling your claim is the scale of efficiency of the company. Your claim will be processed faster, and you will receive your IDV amount quicker.
- Add-ons provided – You can extend the scope of the insurance policy coverage with extra add-ons. Usually, add-ons include Zero Depreciation Add-on, Return To Invoice add-on etc. But if your insurance company offers a varied choice in the add-on segment, it is an added advantage. You can thus customise your policy to better suit the driver you are.
- Pricing of the premium and discounts provided – If too little is covered for an exorbitant premium amount, then steer clear of such insurance companies. While at the same time, if the premium is too low, be wary of them as well, because you cannot know what corners they would be cutting to give you a below the market premium amount. Compare the premium prices with major market players and make sure you are paying a worthy amount. Good companies also reward their loyal customers with discounts and other perks. Hence this is another criteria to judge your company with.
Read more: Should I Call My Insurance if Car Accident Wasn’t My Fault?
- Customer reviews and feedbacks – It is easier now to get hold of customer reviews and feedbacks thanks to numerous review sites. Google ratings and Facebook ratings are one way to gauge the general sentiments customers have towards a company. Asking questions about the company reputation through Quora is another method. If the company website also has testimonials from satisfied customers, that can also be another pointer.
- History of the company – Companies that have been in the market since the beginning and those that still manage to draw in a lot many customers are a fail-safe choice. They have a reputation and a brand-name to care about and will not compromise it for anything. But that doesn’t mean you shouldn’t give the new players a chance. Do a thorough research and call up their eager consulting team and get to know them better. In most cases, they would offer you a good deal in a bid to lure in more customers.
Read more : Your Car’s Age Determines Its Insurance Premium. Here’s How
