5 Questions to Ask Your Car Insurance Provider Before Purchasing a Policy

As a vehicle owner, you would want to take every possible precaution to secure your car or SUV. Right from getting the best quality car cover that protects the paint job to installing a top-notch anti-theft system, you leave no stone unturned in safeguarding your purchase. Taking car insurance also forms an important part of keeping your ride secure. Now, we all are aware that having motor insurance is mandatory by law in India. In an effort to keep with this compliance, you might rush and buy the first plan that comes your way; however, doing so could be a mistake.

Before buying insurance, you need to talk to your agent or provider to get a detailed understanding of what they can offer you. This will ensure that the plan you opt for will truly work as per your requirements. To help you get started, here is a list of 5 questions to ask your car insurance provider before purchasing a policy.

  1. What is the extent of coverage offered?

Before buying car insurance, do ask the agent questions on the extent of coverage of the policy they are selling you. For instance, you may want to inquire whether non-accident related calamities such as fire, flood, or riots are eligible for claims. Write down the coverage offered by 2 or 3 providers, compare them, and choose the one that gives you the most value.

  1. What is the deductible?

Many people often forget that car insurance comes along with a deductible. If you are new to insurance, the deductible is an amount that the policyholder needs to shell out before the coverage payout is made by the provider. There are two parts to the deductible – compulsory and voluntary. The compulsory part is pre-determined and has to be paid. The voluntary figure can be selected by the policyholder. Do calculate how much of a deductible you can afford to pay in the voluntary portion and choose an amount accordingly.

  1. Can the premium be paid in instalments?

It may so happen that when your policy is due for renewal, your finances are tied up elsewhere. In such a situation, it would help to know that your car insurance company allows you to make premium payments in instalments. However, this facility should be used only when needed as instalments often add up to a bigger amount getting paid.

  1. What add-ons are offered?

Make sure to ask your car insurance provider to send you an entire list of add-ons that they offer. Don’t simply pick the ones that people have told you about. Rather, choose add-ons that will truly help fine tune your policy to your needs.

  1. Are there any discounts?

The insurance market is highly competitive. Each provider does their best to offer great deals that will help build their pool of customers. So, do not hesitate in asking your agent whether they have any discounts that may benefit you. Chances are, they may actually go out of their way to offer you a fabulous deal as a new customer.

As a vehicle owner, car insurance is one of the most important products in your insurance portfolio. Do make sure to read the terms and conditions before choosing a plan. We hope this article has been helpful.