What to watch out for while choosing car insurance?
The most important criteria include the five "C"s.
Here's a brief description of each:
• Claim settlement policy - The true test of an insurance company
is at the time of an actual insurance claim. This is possible to check by
looking at the company's past records of claim resolution. Now is the time to
check if the existing insurance can be transferred to another insurance company
without loss of benefits already paid for.
• Coverage - What is the right coverage for you? Usually, car
insurance policies cover third party liability and own damage. According to the
Motor Vehicles Act, it is mandatory to opt for third party liability insurance
cover while own damage is optional. Opting for both is the standard procedure
since they cover any damage due to accidents and loss from third party mishaps.
Most insurance companies offer "add-ons" with the basic policy.
• Customer service - Thanks to technology, insurance policies are
now issued instantly. Besides this, other issues such as changes in policy or
cancellations are processed quickly. In the event of a claim, cashless
settlement is also available so that post-repair delivery is quick without
incurring bills at the workshop. It is therefore important to check the
insurance company's network for this facility. The bigger the network, the
better the claimant's options.
• Communication access - The insurance company's contact
information must be easily accessible. If there is a problem the insured
individual must know whom to get in touch with and the procedure to follow.
• Cost - Last but not least, is the price or premium. Car
insurance premium is based on "insured declared value" or IDV and the
rate multiplier and depends on the car model, the age of the car, daily mileage
and the terrain of the location. It is important to declare the right IDV and
select a policy that offers the maximum IDV even if you have to incur a
slightly higher premium.
Besides the above, the following are the benefits to look for:
• No claim bonus - if no claim has been filed during the insurance
period, a no-claim discount is offered on risk cover against own damage at the
time of policy renewal. For each consecutive claim-free year, the discount
increases progressively. The point to note is that the no claim bonus
eligibility holds good even in the event of a new vehicle purchase or existing
insurance renewal before the due date from a different insurance provider.
• Opting for deductible - Drivers with a good record can opt for
"voluntary excess" or deductible to lower their premium payments, in
addition to the compulsory excess. In the case of a compulsory excess, the
insured is liable to pay a specific amount if a claim is filed.
• Premium based on car type - If your car has extra security
features such as anti-theft alarms the chances of theft is lower and insurance
can come at a lower premium.
• Timely insurance renewal - If car insurance is not renewed
before the expiry date the renewal premium can result in loss of coverage
especially if there is an accident and also mean no discount for the no-claim
bonus.
• Choice of Add-ons- Besides the basic car insurance coverage,
insurance providers offer several optional add-ons. It is important to select
the right ones and only pay for those. For example, if there is a medical
expense cover or hospital cash cover, check to see if you have a medical
insurance policy that already covers these.
• 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 bear in mind are:
• Check that the insurance policy is genuine. Always buy your car
insurance directly from the insurance company or from its authorized agent.
• Always get a premium payment receipt.
• When you receive your policy document, check the IDV, no claim
bonus and deductible details to make sure it is what you opted for. Any
discrepancies must be notified and rectified immediately.
• Make sure 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 the occupants of your
car on two counts: from accidental damage and from third party claims when you
are responsible for the accident. Therefore, choose with care.
Here is your one stop source for invaluable auto insurance
information, all designed to help you purchase cheap car insurance in the
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Article Source:
http://EzineArticles.com/expert/Krishan_Dwivedi/2160332
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