By 
Most of us tend to buy a car insurance policy merely as a formality. We buy whatever is presented or suggested to us with scant thought to it. This often lands you into trouble especially when your car gets involved in an accident. To avoid such disappointments and avoid such monetary troubles; it is imperative that you act prudently investigate well before committing to any car insurance policy. Even though most of the car policies are available online; it is advisable to call up the customer care of the insurance policy providers and have them answer the following questions for you to truly compare plans and make an educated choice.
Q1. What is the IDV of my car?
It is not unknown for agents to mis-sell a car insurance plan. As customers, we are also likely to bargain with the agent and almost force him to lower the payable premium amount for you. Most of the time, the agent bends to your will but he tactfully lowers the value of the IDV or ‘insured declared value’ of your car. You do not realize this except at the time of the insurance claim. Because of the lowered IDV; you get a lower claimed amount than what should have been given to you. Checking your vehicle’s IDV and probably getting a written proof of from the insurance company provider would save you plenty of headache in the future.
Q2. What is my voluntary deductible limit?
Most car insurances require you to pay certain expenses out of your pocket post which the insurance company foots the rest of the expense amount. This out-of-pocket expense of yours is defined as a deductible. It is predominantly of two types- compulsory and voluntary.
The compulsory deductible is the amount fixed by the insurer and must be paid by the insured in scenarios of an accident claim. This is often a high rate in India as it ensures minimum claims.
The second type of deductible is the voluntary deductible whose amount is decided by the insured or the policyholder of the car. This voluntary deductible limit is raised effortlessly by all those cautious drivers who foresee little danger of getting involved in an accident in the future. You can easily get your premium amount lowered by raising this voluntary deductible. The only point of consideration here is to look into your financial situation critically and find yourself capable of bearing the cost of both types of deductibles during an accident.
Q3. Do I need to disclose my previous claim history?
You are likely to land a lower premium if you switch to a different insurance provider and hide all details of your previous claims. But this could blow up on your face when you are trying to make a claim. It is inevitable that your current potential insurance provider will get in touch with your previous provider and get to know your claim history. Any discrepancy or false information is likely to get your claim rejected. Thus, it is vital that you ask this important question and declare this from your end such that there is no discrepancy arising at any point.
Q4. What add-on covers should I go for?
Most of the time, the insurance agents throw in the add-ons and give you the resultant premium amount. When you ask them to lower that premium amount, they simply remove an add-on and give you the reduced quote. You should be alert and vigilant enough to ask the representative about all add-ons available to you and their advantages and disadvantages to you. The most common add-on covers include personal accident cover for the passengers, cover for loss of personal items, road breakdown assistance, etc. Based on your unique conditions and requirements; you can merge the add-ons with your policy. However, you must ensure that you are not overpaying by purchasing add-ons that hold little value for you.
Q5. Is there any discount available for me?
Most insurers have a raft of discounts in their bounty but they do not drool it out involuntarily. You have to specifically ask about them and check if you qualify for that discount. These discounts are typically offered if you are going for a bundle insurance plan with that company; have enhanced the safety and security of your car by installing the latest technological gizmos like the anti-theft security system, airbags, GPS tracker, etc. You are also likely to get a discount if you have a good credit score, have a clean driving record; have not been involved in an accident in the past, etc. You have to dig and make the agent offer you a discount.
Wrapping up
The car insurance market is getting highly competitive. By asking these vital questions to most car insurance providers; you are almost certain to land the best car insurance deal for yourself. Worrying about your car insurance would be a far-fetched dream.
Comments