An analysis by Policybazaar, shows that a growing share of customers now shop around before buying health, term life and motor insurance and that those who compare consistently end up with lower premiums than those who don’t.
Here’s what the numbers show, and why it matters.
Buyers who compare often pay lower premiums
According to the analysis, customers who compare health insurance plans pay premiums that are, on average, at least 20% lower than those who do not compare.
In motor insurance, buyers who compare multiple policies pay about 15-20% less on average, with potential savings ranging from nearly ₹8,000 for older vehicles to as much as ₹30,000 for newer vehicles.
For term insurance, comparing plans can reduce the first-year premium by nearly 30% for a similar level of cover, the analysis said.
Premiums vary widely across insurers
The report attributes much of the difference in premiums to variations in pricing across insurers.
For instance, a ₹10 lakh family floater health insurance policy for a family of three in Delhi was found to cost between ₹773 and ₹2,426 per month, depending on the insurer and product features. For a 62-year-old couple with pre-existing medical conditions, monthly premiums for comparable cover ranged from ₹2,423 to ₹5,562.
In term insurance, a 30-year-old non-smoking salaried individual seeking ₹1 crore cover until the age of 60 could receive quotes ranging from about ₹635 to ₹958 a month. For a 35-year-old parent opting for ₹2 crore cover, premiums ranged from around ₹1,338 to ₹2,165 per month.
Motor insurance premiums also showed significant variation.
A comprehensive policy for a three-year-old car valued at ₹10 lakh, including common add-ons such as zero depreciation and roadside assistance, ranged from ₹12,000 to ₹25,000 annually. For a three-year-old vehicle worth ₹20 lakh, premiums ranged between ₹15,000 and ₹35,000.
More buyers are comparing plans before purchase
The analysis indicates that comparing policies has become more common across insurance categories.
Nearly three-fourths of health insurance buyers now compare at least three plans before making a purchase. A similar trend was seen in motor insurance, where 70-75% of customers compared multiple options.
In term insurance, just over 40% of buyers compared three or more plans, up from 32% in 2023, suggesting comparison behaviour is increasing in the segment.
The report found that comparison activity was highest among families aged 28-45 years in health insurance, while buyers aged 30-35 years were the most active in comparing term insurance plans. In motor insurance, customers in Tier II and Tier III cities were found to compare policies more extensively than those in metro cities.
Price is one factor among several
The analysis noted that buyers consider several factors in addition to premium while selecting an insurance policy.
For term insurance, claim settlement ratio was among the most important considerations, alongside coverage amount and rider benefits. In motor insurance, buyers also evaluated factors such as claim experience, network garages and insurer reputation. Health insurance customers were found to compare features including hospital network, room rent limits, deductibles and co-payment clauses while balancing premium costs.
Also read: Nearly 9 in 10 unlimited health insurance buyers are under 45: Policybazaar
The report also observed differences between first-time and existing policyholders. First-time buyers were generally more price-sensitive, while customers renewing or upgrading policies tended to focus more on policy features, claims experience and long-term value.
According to Policybazaar, wider use of digital comparison platforms has improved access to information, enabling customers to evaluate multiple policies before making a purchase.
The analysis also comes at a time when healthcare costs continue to rise. With medical inflation estimated at around 14-15% in India, comparing policy features and premiums has become relevant for households seeking adequate insurance cover while managing costs.
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