Car insurance – Know prior to purchasing!

Auto Insurance

What are the most important things to look out for when you are deciding on car insurance?

These are five “C’s” that are most important.

  • Claim Settlement Policy An actual insurance claim is the most effective way to check the credibility of an insurance company. It is possible to determine this by reviewing the past records of claim resolution. This is the best time to determine if existing insurance can be transferred without losing benefits.
  • Coverage What is the appropriate insurance for you? Usually, car insurance policies cover third party liability and own damage. As per the Motor Vehicles Act, it is mandatory to opt for the third party liability insurance cover and own damage insurance is an option. Both are highly recommended since they both protect against damage resulting caused by accidents and loss due to third-party mishaps. Most insurance companies offer “add-ons” that are included in the base policy.
  • Customer service insurance policies can be immediately issued thanks to the advancement of technology. Other issues, like cancellations or modifications to policies are also addressed promptly. In the event of a claim, cashless settlement is also accessible so that repair delivery is quick without incurring charges at the workshop. This is why it is essential to check the insurance company’s network for this facility. The bigger the network is, the more appealing the claimant’s choices.
  • Access to communications – Contact information for insurance companies should be easily accessible. The insured person must be able identify the appropriate contact person, and the process to follow when there’s an issue.
  • Cost – Last but not least, is the price or premium. Car insurance premium is dependent on “insured declared value” IDV or IDV, and the rate multiplier. It is based on the model of the car, the age of the car, daily mileage and the conditions of the place. You must declare the correct IDV and pick an insurance policy that offers the most IDV even if it means you will have to pay a more expensive premium.

Apart from the benefits described above There are additional advantages:

  • No-claim bonus If there was no claim made during the insurance period, the no-claim coupon will be given on risk protection against personal damage during the time of renewal. The discount is increased with each successive year of no claims. It is crucial to keep in mind that the bonus for no-claims applies regardless of whether a vehicle is purchased or a renewal of the policy is made prior to the due date.
  • Opting for deductible Option to take deductible Drivers with a great track record may opt for “voluntary excess” or deductibles to reduce the amount of premium they pay and in addition to the obligatory excess. If there is mandatory excess, the insured is liable to pay a specific amount if a claim is made.
  • Premium based upon car kind – If your vehicle is equipped with additional security features like anti-theft alarms, the risk of theft is lower and insurance can be offered for a cheaper price.
  • Auto insurance renewals are due on time – Inability to renew car insurance prior to the expiry date could result in the loss of coverage, especially in the case that there is an accident. It also means that there will be no discount for the no-claim bonus.
  • Add-ons – Insurance companies offer a variety of optional additional services to your basic insurance coverage. It is crucial to choose the correct add-ons, and only pay for the add-ons. For example, if it is a medical expense cover or cash-back hospital policy, check to see whether you have a health insurance policy that already covers these.
  • With the same insurer or renewing? If it’s the time to renew your insurance for your vehicle, compare insurance providers to determine what they have to offer before making the decision. You may find a cheaper cost elsewhere if searching for the same coverage in the car insurance.

Some final precautions to keep in mind are:

  • Verify that the insurance policy you purchased is legitimate. It is recommended to purchase your car insurance directly through the insurance company or an authorized agent.
  • Always obtain a premium payment receipt.
  • When you receive your policy document, check the IDV, no claim bonus and deductible details to make sure it’s the one you have selected. Any discrepancies must be reported immediately and rectified.
  • Only sign the form for proposal. Always read it before signing it.
  • Don’t opt for the monthly payment option as it is more expensive than annual payments

Car insurance covers you and the passengers in your vehicle against accidental damage, and third-party claims if you’re responsible for an accident. So, make sure you choose your insurance carefully.

Questions to ask before you purchase a car insurance policy

What and who do I have insurance for?

Does the policy protect you or the other party? You need to know the kind and the coverage of the auto insurance that you receive. Third-party insurance is for damages and losses that occur to the car of the other driver. Comprehensive insurance is, however is able to cover third-party damages as well as yours. It is imperative to be aware of the details of what you’re paying for.

My insurance will cover any other drivers of my vehicle?

To avoid being told “You weren’t the driver at the time of the accident time” It is important to ask the question. Some insurance companies make payments depending on whether the policyholder has provided permission for the driver to drive your vehicle.

For instance, if (the policyholder) gave a friend permission to drive your car and they caused an accident, the insurance company will not pay for the claim since the car is registered under the policyholder’s name.

How is the price of my car determined?

It is essential to ask because your insurance provider has a way to calculate the value of your car. This will allow you to calculate the cost of insurance. It is possible that the car’s value is lower than you expected. The answer to this question is the most effective way to become informed.

What time will my car be repaired after an accident?

When a car gets towed following an accident, it’s crucial to determine when it would be repaired. You should decide if the time frame stated in the policy reasonable for you. If not, you can choose a different insurer that has shorter duration. Requesting clarification is the only method to get it, particularly if this isn’t mentioned on the inquiry form.

How much do I pay to start my auto insurance?

It is largely based on your budget and what you can afford. Insurance companies vary in their prices for auto insurance. Comprehensive insurance, which covers more people, is less expensive than third insurance. Take a look at all options before deciding which one is best for you.

Additional Resource: