Car insurance is not everyone’s cup of tea! To begin with, one has to come to terms with all that insurance lingo! After that, you need to understand how a plan works, which can seem quite complex. All-in-all, it can leave with you several doubts & queries, especially if you have no prior experience with insurance.
We understand and to help you out, we have listed and answered some of the most commonly asked car insurance questions. Hopefully, it will help you and other potential buyers like you make sound & streamlined purchase decisions.
1. Why do I need car insurance?
This is one of the most common questions buyers have when it comes to car insurance. Why do I need to pay for insurance years after year, what do I get in return? Well, first off, you need to buy car insurance because it is mandatory. With a valid policy, you can be fined up to Rs. 2,000 or even more if you are a repeat offender. You could also be jailed in some instances.
In return for your annual returns, you also get protection from the financial impact of numerous unfortunate events, including accidents, storms, theft, and other man-made & natural calamities. Your car insurance policy will cover repair costs or offer compensation in case of the total loss of your vehicle. So that’s why you need a car insurance policy!
2. Do I have to stay the same car insurance plan forever?
This is another common question that buyers have! And no, you do not have to stick to the same insurance plan or provider forever. You can switch to a new plan, type of policy, or insurance provider at any time you like. The process to change insurance providers is known as portability. It is common practice for policyholders to ‘port’ their plans if they find another plan that offers better coverage, lower rates, or better customer service.
3. There is an error in my policy document, what do I need to do?
It happens, your name could be spelled wrong or there might some error in your policy details. Some assume that it is not a big deal, but it could actually cause issues when you need to make a claim. Therefore, when you notice any mistake in the policy details, intimate your insurance provider immediately. It is advisable to do so over the phone and through email as well, the latter will serve as written proof.
4. My car insurance is burning a hole in my pocket, can I lower my premium?
This is probably the most commonly asked question about car insurance! This is because every motorist would love to reduce the cost of his/her motor insurance plan. The good news is that there are several ways to reduce the cost of your policy. Simply not making a claim against your policy could earn you discounts of up to 50% on your annual premium. You can also lower the premium of your policy by installing safety devices and joining the AAI or other such automotive groups.
5. What determines the cost of my car insurance plan?
The cost of your car insurance policy depends on several factors. These include things like the cost of your car, its cubic capacity, its fuel types, where you live, the type of cover you opt for, etc. The best way to ascertain the cost of your plan is to visit an insurance company’s website and look for the ‘buy now’ button. Click on it, enter the details of your car. Within moments, you should be provided with an instant quotation based on the details of your car.
If your doubt or queries is not listed here, we suggest you pick up the phone or visit your nearest insurance provider for assistance. You should only buy a plan once you have complete information about the policy.