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Posted On: March 21st, 2017    To  Auto Insurance

Car Insurance

Do you have a car? Is it insured? No? You must have a car insurance as it has become mandatory now. Let me explain. Earlier, car insurance was not so important. Very few people had it but majority of them didn’t have. However, today if you own a car, an auto coverage policy is very crucial. Irrespective of their car being a modest or a luxurious one, a proper coverage is needed.

Earlier, for buying a car insurance you needed to meet your neighborhood and ask for one. It is not the same now as a wider range of coverage choices are available now at the counters, where you can get your desired car insurance. Now, let’s get some common ideas about the policies and the fraud ones, so that you will be on the safe side while insuring your car.

Various Types of Available Insurance

If you talk of the standard policy, then it’s for a single car and 12 months. Based on your variable requirements, there are other varieties available:

  • Multi-car: Get a discount by insuring all your cars at your address.
  • Learner: This policy is for those are under driving learning process either in their own car or others car.
  • Temporary: It covers for a brief span of 1-28 days.
  • Business: This policy is required in case apart from domestic use you are using your car to drive from your work place to somewhere.
  • Black box/telematics: An app or a box installed in your car gives a detailed information about your driving speed, time, handling the car, braking, etc. to the insurance company to decide the policy prices on.
  • Classic car: This policy has been provided for the owners of a classic car. The classic car can be any car but older than 15 years.

Kinds of Insurance Policy you should get

On getting a quote you will be asked what kind of insurance you want.

The three major categories to choose from are:

  • Third Party: It is the minimum level of available insurance. This policy aims at insuring the damages caused to someone’s property or someone’s life including the passengers in your car during an accident. Be clear that this doesn’t include coverage for car replacement or repair.
  • Comprehensive: It is one of the most beneficial covering for you, your car, the passengers and their property.
  • Third Party, Fire and Theft: It is as same as the third party offering the same coverage but with added facility of covering the repairing or replacement of your car damaged by fire or stolen.

Car insurance Fraud

Cheating in the insurance process, providing inappropriate info about the quotation and claiming falsely for a whiplash is what is insurance fraud. Besides this, an insurance denying to offered the due benefit to the customer is also fraud.

Types of fraud

  • Fronting
  • Crash-for-cash
  • Fabricated or Exaggerated claims
  • Phantom passenger claims
  • Contrived accidents
  • Application Fraud

Some cautions to be taken

To avoid these frauds it is necessary to have some precautions in mind:

  • Verify whether the insurance policy is genuine or not and always ensure to buy an insurance directly from the company rather than from an agent.
  • Don’t forget to have a premium payment receipt.
  • Check the deductible details, IDV, no claim bonus while receiving your policy document to assure yourself that it is the policy what you required. Any deviation must be notified and got rectified as soon as possible.
  • None other than you must sign the proposal form and always make it a point to read before you sign.
  • Don’t go for monthly payment as this scheme is expensive than the annual payments.

Consider these while Choosing

  • Coverage: Generally, own damage and third party liability is covered by such policies. As per the Motor Vehicles Act it is compulsory to opt for the liability of third party insurance while own damage is optional. Still, it’s well and good if you opt both of them.
  • Contact info of the company: The contact info of the insurance company must be easily accessible. If it is not so, then you must know whom to contact with and the procedure to be followed.
  • Policies of settling the claim: The instance of an actual insurance claim is the real test of an insurance company. By having a glance of the previous claim resolving record will allow you to check this. Next, verify whether you can transfer the existing insurance to another company devoid of the loss of benefits already paid for.
  • Price: The price or premium is another important factor. This premium insurance depends on the IDV, car model, daily mileage, age of the car, location’s terrain and the rate multiplier. It is wiser and also crucial to declare the correct IDV and avail a policy with right IDV, even though you have to pay a bit higher premium.
  • Reliable Service for customers: Technology has made it easy for the insurance policies to be issued, modified or canceled within no time. Thanks to technology, insurance policies are now issued instantly. Besides this, other issues such as changes in policy or cancellations are processed quickly. For claims, making the post-repair delivery fast without incurring bills in the workshop, the cashless settlements are available. So, for this facility it is necessary to check company’s network.

Saving Money Due to Car Insurance

Wrap up

Did you get now? Yeah…. Now hurry up and soon choose the perfect insurance for your car. Remember, the car insurance protects both you and your car. So, be very cautious and make sure to choose the best car insurance. Besides these considerations, I would like to offer you one important advice. Always make a thorough inquiry about the company in detail before you start dealing with it.

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