Team AckoOct 14, 2022
Car insurance is an excellent way of creating a strong financial backup. But the core concepts can sometimes be confusing. The legal terms, the coverages or exclusions, can mislead you. So the best way of understanding how to buy a suitable policy is by asking the right questions. It will help you clear the concepts about car insurance and you can buy a better-suited policy upon your next renewal (or purchase).
Here is a list of questions you must be asking before you buy a car insurance policy.
Below are some basic questions to ask while buying a Comprehensive Car Insurance Plan.
1. What am I expecting from my car insurance policy?
People often treat buying car insurance as a task that must be completed without giving it much thought. It should not be just choosing a plan and making payment. This approach can be counterproductive when you need to raise a claim. What if you bought insufficient coverage? To avoid last minute-hassles, you can note your requirements before purchasing a car insurance plan.
For example, consider how often you drive with co-passengers. If you frequently drive with your family or friends then consider buying the Personal Accident Cover for Passengers add-on.Another example is if you have a history of claims, you should consider getting the No Claim Bonus (NCB) Protection add-on to avoid losing your accumulated NCB.
2. What is not covered under my car insurance plan?
As important it is to know what is covered under the policy, it is also necessary to understand what is not. The term for the things not covered under your car insurance policy is — Exclusions. In case you raise a claim against an exclusion, it will get rejected. So what are the common exclusions of a car insurance policy? Here is a list.
Damage to the car from regular wear and tear is not covered.
Mechanical or electrical issues with the vehicle or manufacturing defects are an exclusion.
Damage to the car if you are driving after consuming an intoxicating substance, say alcohol.
Damage when you are not carrying the necessary documents, eg. Driving Licence.
Other exclusions mentioned in the policy document.
3. How much do I pay for buying car insurance?
The cost of every car insurance policy is slightly different because there are many factors at play for deciding the premium. There are things like the type of your car insurance policy, the number of car insurance add-ons, the model of the car, its current market price, etc.
So when you set out to buy a car insurance policy, ensure to use the car insurance premium calculator before finalising the plan. It will help you know the approximate cost of the policy. The premium calculator is a free online tool that is usually available on any car insurance company’s website. At ACKO, you can use this tool while purchasing a car insurance plan.
4. Car insurance jargons are so confusing. What should I do?
The terms used in a car insurance policy can get a little technical and lead to confusion. Check the car insurance glossary to take a quick look at all the important terms related to motor insurance. These terms are listed in alphabetical order for quick browsing.
Once you get familiar with car insurance terms you will understand the coverages better. You can then buy the most suitable plan for your car.
5. Is voluntary deductible a good thing?
Deductibles are a part of your car insurance claim settlement amount. While your insurance company will bear most of the repair bill, you need to pay the Deductibles. There are two types of deductibles in car insurance, compulsory and voluntary. The names are self-explanatory. You can choose the percentage of voluntary deductibles whereas the compulsory deductibles are fixed by the insurer.
So is this a good thing? Yes if you are confident of avoiding a claim then you can opt for a voluntary deductible. By doing so, you are promising the car insurance company that you will bear a part of the claim amount. In turn, you will get a discount on car insurance premiums.
6. Which add-ons do I need?
Assessing your needs to find which are the most suitable add-ons will be helpful in the long run. At ACKO, you will find add-ons like,
Roadside Assistance Cover
Key Replacement Cover
Outstation Emergency Cover
No Claim Bonus Protection
Return to Invoice Cover
Personal Accident Cover for Passengers
Each of these add-ons offers particular coverage to cover your needs and give maximum benefit. Out of the above list, Zero Depreciation Cover and Roadside Assistance Cover are universally useful.
7. Do I need to buy car insurance every year?
The validity of your car insurance plan depends upon the tenure you choose. Some are long-term plans while others are valid for a shorter period of time. As per the laws, it is necessary to buy at least a Third-party Car Insurance policy, the tenure can be annual or more depending upon the terms and conditions of the insurance company. You can then choose to buy a Comprehensive policy for extensive coverage.
8. Is my car insurance company reliable?
You must always check the IRDAI (Insurance Regulatory and Development Authority of India) registration number of the insurance company to know if it is a genuine insurer. For example, ACKO's IRDAI Registration number is 157.
You can cross-check the company’s registration number on IRDAI’s website to know more details about your car insurance company.
Here are some basic tips for buying car insurance if you are new to the concept.
Always compare: Comparing motor insurance policies will allow you to know the details of each plan and compare them on the basis of coverage, services, and cost.
Know your requirements: As mentioned before, it will be helpful to know your personal requirements before you buy the plan. This will help in avoiding unnecessary add-ons or coverage. Additionally, you can be sure about buying exactly what you need.
Understand the reputation of the insurance company: Nowadays, you can go online (on social media handles) and check how well a company is performing. Simply go through the company’s user comments, star ratings, and testimonials.
Understanding car insurance is pretty easy. You don’t have to master the concept to buy a suitable policy neither do you need to rely on someone else to buy a policy for you. Thanks to digital insurance, the process has become transparent and straightforward. It will be helpful if you revisit your current plan when you renew car insurance.
Being transparent about the claim history will be very helpful and build trust with the insurance company. Avoid any misleading or false information if you wish to fairly receive the claim amount.
You must check the coverage, exclusions, and terms of the car insurance plan you are buying.
You will find the contact details of your car insurance company on your policy document.
|Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet; and is subject to changes. Please go through the applicable policy wordings for updated ACKO-centric content and before making any insurance-related decisions.|
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