Having insurance ensures that you are financially secure to deal with unforeseen problems in life. This is why insurance is a vital part of financial planning. Health, travel, home, and motor vehicle insurance are all available through general insurance companies. Another purpose of insurance is to manage risks. Buying insurance means transferring the risk of a potential loss to the insurer in exchange for a fee. This fee is called a premium. Insurance companies create funds that are made of the premiums provided by the customers. The companies then invest these funds securely so they can grow. They make payouts when a claim is made using this invested money.
Over the years, insurers and aggregators have made it convenient for consumers to purchase insurance online. Whether buying a medical policy online or a car insurance policy online, purchasing insurance has become a seamless affair.
With a vast number of insurance options available in the market, the task of choosing which one to buy can be intimidating for those who are not very familiar with the concept of insurance.
Mentioned below are 5 top tips to compare insurance plans online:
1. Use a reliable online portal
Multiple insurers are offering several insurance plans across the country. Therefore consumers find it challenging to shortlist reliable insurers. However, thanks to online portals, consumers can quickly compare insurance plans online and pick plans that are most suitable for their needs. Insurance portals not only simplify the process of choosing an insurance policy but may also provide substantial support in clarifying your doubts. More importantly, an insurance portal would also assist in filing and processing claims.
2. Analyze your needs
While comparing insurance policies online, remember to analyse your needs. Due to the availability of multiple plans, one may be tempted to purchase a plan with all the bells and whistles. This is because consumers may be influenced to purchase plans or benefits which they may not require.
However, it is crucial to determine your needs rather than getting swayed by the options available online. For example, a simple thumb rule when it comes to health insurance is that your cover should be ten times your monthly income. However, it may also depend on whether your current employer provides an existing cover.
Most importantly, remember that you should be able to afford the premium of the plan you wish to purchase.
3. Be sure to read the fine print
The fine print of an insurance plan consists of all the details of the insurance. When comparing insurance plans online, carefully read the “terms and conditions” section of the fine print. This way, you will be able to clear up any doubt you may have regarding the policy’s coverage. Find out about what is offered by the insurance provider and learn about the inclusions and benefits. This will give you the confidence you need to go ahead with your insurance plan.
4. Take your time while comparing plans
Working quickly without rushing is the key. Consider your options carefully. Identify the factors that matter most to you and compare them across different insurance plans. Make sure that the one you choose matches the features that you have shortlisted. You can even buy medical policies online which matches your requirements once you compare different policies.
5. Check for other factors
While comparing insurance policies online, remember to check out the credibility of the online portal. You can check for elements such as an SSL certificate (if the portal has an SSL certificate, then its URL will begin with HTTPS rather than HTTP), tie-ups with insurers and availability of information. Users would have offered reviews about the portal on Google Reviews or other platforms. You could analyse those reviews as well. It is vital to choose an unbiased portal that transparently provides details about insurers.
Finally, while comparing insurance online, remember to cross-check information offered on portals with the information offered on the insurer’s website. This will ensure that you are updated about the latest features of an insurance policy.