If you think buying car insurance policy is a straightforward affair that can be accomplished in a jiffy, you couldn’t be more wrong. Finding the right policy that covers all potential risks is important. It is thus prudent to carry out a little research to learn the ins and outs of the policy. Asking a few questions before taking the plunge can help avert unpleasant shockers down the line.
While most of tend to adopt the easiest route when buying an auto insurance policy like asking close friends for suggestions or opting for a popular company, it is not an advisable thing to do. Before committing to a policy, it’s imperative to be well informed about the coverage, rates and all the options available. The solution is to ask your insurer or the customer care personnel (for online car insurance) an array of questions such that you can compare plans to make an informed decision. This list of 6 queries will help you choose the motor insurance policy that's right for you.
# Question 1:
What is the IDV of my car?
The insured declared value (IDV) is the current market value of your vehicle which has a direct bearing on the premium. Agents of insurance companies tend to slash the premium during talks. It is important to ensure they do not subtly reduce the IDV of your car as this can impact your insurance coverage and subsequently lower your claim amount.
# Question 2:
How many authorized garages?
This is another vital question to ask. Taking out a car insurance policy with the company that has a number of authorized garages especially in proximity to your whereabouts is a prudent move. A company with fewer garages means you have to travel a distance to get your car serviced.
# Question 3:
Do you offer discounts/deals?
Most companies offer attractive discounts in return for buying a policy, but often the agents refrain from disclosing the same. It is thus important to inquire about the on-going schemes and bargain hard to clinch them. But then again, you need to be cautious that the discounts don’t come with any unpleasant surprises and hidden extras.
# Question 4:
What about add-on covers?
The standard procedure followed by an agent is to offer a premium quote after taking into account add-on covers. These are additional benefits (prompt roadside help, loss of personal stuff, engine repair, personal accident coverage, key replacement, etc.) that provide better financial protection to your car in the event of a mishap, mechanical glitch or breakdown. You need to pay a little extra for the coverage depending on the make/model/age of the vehicle, but since it boosts your basic insurance policy, it is worth the money dished out.
# Question 5:
What are the Payment options:
Most insurance companies prefer an annual lump sum amount. However, there are a few that offer easier options like monthly or quarterly instalments to disburse the premium. Check out payment schemes available if shelling out the entire amount is difficult.
The above 5 questions can provide you with the correct information needed to choose the right policy. Armed with the right knowledge you can subscribe to car insurance online. The mode is quick, cost-effective and enables easy comparison along with a systematic evaluation.