Questions To Ask Before You Commit To An Attractive Car Insurance Deal

Before you seal the deal with an insurance company, make sure you read the following.

Purchasing insurance for your car is a decision that is mostly judged on face value. Don’t let a seemingly attractive insurance deal fool you. You’ll never know what’s underneath all that make-up.

Here are a couple of questions you need to ask your insurance company before committing to the deal.

What’s my car’s insured declared value (IDV)?

While you’re negotiating with the agent to lower your premium from, say, Rs. 20,000 to Rs. 18,000, or searching for the cheapest deal online, make sure that the discount doesn’t come at a price. Often, the IDV is reduced in order to accommodate the discounted premium. Sometimes, the insurer gets to know this only at the time of filing a claim. Therefore, asking the question about your IDV is a very important step.

What are the deductibles?

‘Deductibles’ is the amount of money that the insured has to pay out of his/her own pocket before the insurance company will pay the claim amount. Often, an agent will reduce the premium amount without letting you know that he’s increasing the deductibles in your policy.

Will my car be replaced with original parts in case of damage?

Sometimes, insurance companies don’t necessarily replace your car with original parts. There are automobile spare parts available in India that fit all types of cars. Don’t be deluded into believing that the insurance company vows to replace your car with original parts. Ask your insurance company about this first!

Will I get any discounts?

Most insurance companies will offer a discount. However, like the tactful salesmen they are, don’t expect them to spit it out themselves. Persuade them to give you a discount. Discounts usually include lower premiums, or an extended period of coverage.

Should I disclose previous claims history?

Not being transparent with your new insurer about your previous claims may earn you lower premiums. But, your claim may get rejected in the event that there are discrepancies in your statement, and your previous insurance company’s statement. Your current company verifies with them before covering your claim. So, it’s in everybody’s best interest that the customer discloses his/her previous claims history.