Car insurance: be careful before you buy!
What to keep in mind when choosing car insurance?
The most important criteria include the five “Cs”. Here is a brief description of each one:
• Claims settlement policy – The true test of an insurance company is at the time of an actual insurance claim. This can be verified by consulting the company’s previous claim resolution records. Now is the time to check if the existing insurance can be transferred to another insurance company without losing the benefits already paid.
• Coverage – What is the right coverage for you? Generally, auto insurance policies cover your own personal liability and damages. According to the Motor Vehicle Law, it is mandatory to opt for liability insurance coverage, while own damages are optional. Opting for both is standard procedure as they cover accident damages and third party mishaps losses. Most insurance companies offer “add-ons” to the basic policy.
• Customer service – Thanks to technology, insurance policies are now issued instantly. In addition to this, other issues such as policy changes or cancellations are processed quickly. In the event of a claim, cashless settlement is also available for quick post-repair delivery without incurring workshop invoices. Therefore, it is important to check the network of the insurance company for this installation. The larger the network, the better the claimant’s options.
• Access to communication – Contact information for the insurance company should be easily accessible. If there is a problem, the insured must know who to contact and the procedure to follow.
• cost – Last but not least, there is the price or the premium. The auto insurance premium is based on the “insured declared value” or IDV and the rate multiplier and depends on the car model, the age of the car, the daily mileage and the terrain of the location. It is important to declare the correct IDV and select a policy that offers the maximum IDV even if you have to incur a slightly higher premium.
In addition to the above, the following are the benefits to look for:
• No claim bonus – If no claim has been filed during the insurance period, a no-claim discount on self-damage risk coverage is offered at the time of policy renewal. For each consecutive year without claims, the discount increases progressively. The point to note is that the eligibility for the no-claim bonus is valid even in the case of the purchase of a new vehicle or the renewal of the existing insurance before the expiration date from a different insurance provider.
• Opting for deductible – Drivers with a good record can opt for “voluntary franchise” or deductible to reduce the payment of their premiums, in addition to the mandatory franchise. In the case of a compulsory excess, the insured is obliged to pay a specific amount if a claim is made.
• Premium according to the type of car – If your car has additional security features, such as burglar alarms, the chances of theft are lower and the insurance may have a lower premium.
• Timely renewal of insurance – If the car insurance is not renewed before the expiration date, the renewal premium can result in the loss of coverage, especially if there is an accident and it also means that there is no discount for the no-claim bonus.
• Choice of add-ons– In addition to basic auto insurance coverage, insurance providers offer several optional add-ons. It is important to select the correct ones and pay only for them. For example, if there is medical expense coverage or hospital cash coverage, check to see if you have a medical insurance policy that already covers them.
• To renew or not to renew – With the same insurance provider? When it comes time to renew your car insurance, shop around for insurance providers to see what they offer before making a decision. The auto insurance industry is very competitive, and for the same coverage, you can probably get a better price elsewhere.
Some final precautions to keep in mind are:
• Verify that the insurance policy is genuine. Always buy your auto insurance directly from the insurance company or its authorized agent.
• Always get a receipt for your premium payment.
• When you receive your policy document, check the IDV, the no-claim bonus and deductible details to make sure it is what you chose. Any discrepancies must be reported and remedied immediately.
• Be sure to only sign the proposal form and always read before signing
• Do not opt for monthly payments, as they are more expensive than annual payments.
Remember it Car insurance It protects you and the occupants of your car for two reasons: against accidental damage and against third party claims when you are responsible for the accident. So choose carefully.