Auto Insurance FAQ

19 June 2012 //

Car Insurance – Frequently Asked Questions That Matter

Auto Insurance FAQI am sure you agree that anything you invest in must be
protected from financial losses of any sort. After all, you purchase something to get the best benefit out of it for a long time to come. Same goes for a car or an automobile; the money spent is well earned when it gives you more than the expected mileage and lasts for a considerable number of years. You look after your car as you would your own self and then one day you may put it on the market and expect a good return. Of course, it is natural that you must have maintained your car extremely well for it to give back maximum returns and that leads to insurance plus servicing. Now why would you insure your car and to get answers to more such questions this blog might provide you with all the relevant answers.

Legally it is binding to have your car insured in all countries if you own one. Here are some of the frequently asked questions about car insurance.

#1 Factors to select a car insurance company
Select a company that has a record regarding claim settling ratio. It must have a tie-up with most of the petrol stations that you visit or are likely to visit; and these must be cash-less tie-ups.

#2 Insurance policy
The policy should have the details of your RC details and that includes the car type, fuel type, seating capacity, model etc.

#3 The renewal notice
Check the vehicle registration number; IDV is reduced by a 10 percent minimum; premium lessened if no claims in the last year; NCB (No Claim Bonus) is lessened; watch out for the Third Party Insurance.

#4 Difference between insurance companies
Each insurance company has its own set of offers regarding discounts, P.A. (Personal Accident) cover, IDV, which results in different premium amounts. Check this out before finalizing

#5 Eligibility on NCB
Be confirmed about the No Claim Bonus percentage, which should come down each year if you had no incidents of claiming in the past year.

# 6 Look for the best depreciation
Decide on the insurance company that gives you the best depreciation on the metal parts calculated every year.

#7 Car damage policy
The insurance policy must cover damages to the car in case of an accident – replacement cost or repairing cost must be considered.

#8 Third party insurance
Look through the fine lines of third party damages and third party life compensation.

#9 Excess deductions
Settle only for cubic capacity deduction and never for the excess deduction, which reduces the premium but leaves you empty handed when insurance claim payout is required.

#10 Careful about IDV
IDV is not paid by any insurance company if you have not reduced your car value by ten percent in the last year or increased its value without any valid reason.

#11 Renewal of insurance
Third party insurance does not need any inspection but a comprehensive Auto insurance quotes must go through an inspection before renewal.

#12 Theft repayments
If your car is stolen the insurance company will pay the entire IDV but not the excess. This is dependent on whether you devalued your car by 10% in the past year or increased its value in the past year.

 

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