What to watch out for while choosing a car insurance?
The most important criteria are the five “C” s. Here is a brief description of each:
• Claim settlement policy – The true test insurance company at the time of actual insurance claim. This can be checked by looking at the past records of the company on the claim resolution. Now it’s time to check if the current insurance can be transferred to another insurance company without losing benefits already paid for.
• Discussion – What is the correct coverage for you? Usually, car insurance cover third party liability and own damage. According to the law on motor vehicles, it is necessary to vote for third party liability insurance cover, while net claims is optional. Opting for both the standard method since they cover damage due to accidents and loss of third party accidents. Most insurance companies offer “add-ons” with the basic policy.
• Customer Service – Thanks to technology, insurance are now issued instead. Besides this, other factors, such as changes in policies, cancellation processed quickly. In the event of a claim, cashless settlement is also available so that after repair delivery is quick without incurring bills of the workshop. It is therefore important to check your insurance network for this facility. The bigger the network, the better potential creditors.
• Communication cable – insurance information must be available. If there is a problem that the insured person must know whom to get in touch with and the procedure to follow.
• Cost – Finally, is the price or premium. Car insurance premiums are based on the “insured declared value” or IDV and rate multiplied, depending on the car model, the age of the car daily mileage and terrain location. It is important to correctly describe the IDV and choose a policy that offers maximum IDV even if you have to carry a slightly higher premium.
In addition to the above, the following are benefits to look for:
• No claims bonus – if no claim has been credited to the insurance period, a no-claims discount is offered risk cover against their damage at the time of policy renewal. For each row of the claim-free year, the discount increases gradually. The point to note is that no claim bonus eligibility but good, even in the event of a new acquisition vehicle or existing insurance renewal for maturity from different insurance provider.
• Opting deductible – Drivers with good record can opt for “voluntary excess” or deductible to lower their premiums, in addition to the compulsory excess. In the case of compulsory excess, the insured is obliged to pay a certain amount if a claim is filed.
• Premium based on the type of vehicle – if car has enhanced security features such as anti-theft alarm probability of theft is lower and security may be at a lower premium.
• Timely renewal of insurance – if insurance is not renewed before the expiry date, renewal premium may result in loss of coverage especially if there is an accident and also mean no discount for no -claim bonus.
• Selection of Add-ons – increase basic car insurance, insurance providers offer several optional add-ons. It is important to choose the right ones and pay only for them. For example, if there is a medical expense cover or hospital cash cover, check to see if you have a health insurance policy already covers this.
• To renew or not to renew – with the same insurance provider? When it is time to renew your car insurance, compare insurance providers to see what they are offering before making a decision. The car 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
• Check whether the security is genuine. Always buy insurance directly from an insurance company or authorized agent.
• Always get the premium receipt.
• When you receive the policy document, check IDV, no claim bonus and deductible information to make sure it is what you choose. Discrepancies must be notified and correct immediately.
• Make sure that only you sign the proposal form and always read before signing
• Do not opt for monthly payments as this is more expensive than annual payments
Remember that car insurance protects you and passenger car on two counts: from the damage and claims from third parties when you are responsible for the accident. Therefore choose with care.