These Commonly Asked Questions Will Help You Solve Your Car Insurance Queries
Your life and health are two critical components of life that must not be overlooked to create a financial backup for. While it ranks above everything else in your life, it does not mean you can skip other forms of insurance covers. Many drivers are ignorant of the traffic laws and end up damaging vehicles around them. Your car could be one of them. So, to remain on the right side of law and ensure protection to your vehicle, it is best to buy a car insurance policy.
A car insurance policy is mandatory by law. The Motor Vehicles Act of 1988 lays down this requirement and hence all car buyers need to buy one. You can buy a car insurance online that simplifies the buying process, all the convenience of your couch. There exist myriad insurance plans that can often confuse new buyers. Let alone new buyers, the ones that renew their policy at each period are also confused. Here are some of the commonly asked questions about car insurance helping you attain a clear understanding of it:
What are the types of car insurance policies that can be purchased?
Car insurance plans are available in either of the two types—a third party car insurance plan or a comprehensive policy.
Third-party cover offers limited coverage for liabilities that arise as a result of accident injuring a third person or damaging their property. Hence, it is also called as a liability-only plan. This type of insurance cover is the bare minimum that is required and hence the premiums are determined by the regulator.
Contrary to third-party plans, comprehensive policies are those that offer financial protection against damages to your car too; all of it in addition to the third-party coverage. Hence, it offers a broader coverage and as a result priced steeper. Moreover, these plans can be customised using add-on facility thereby enhancing the policy’s scope.
What are the documents required for buying a car insurance policy?
Insurance companies require the vehicle registration documents and identification proof of the policyholder. Your vehicle’s registration certificate and PUC certificate are sufficient documents for the vehicle, whereas identity proof and address proof are enough for the policyholder.
Can car insurance be renewed online?
As discussed above, online purchase of a car insurance policy adds convenience and simplicity to the buying process. Not just that, you can make car insurance renewal online in which any modification to the coverage can be carried out as per requirement.
What are the factors based on which the premiums are decided?
The premium of your car insurance policy is not based on any one factor but a combination of many. Model and make of the vehicle, year of registration, insured declared value or IDV, location of registration, engine capacity, type of policy, policy features opted are some of the factors.
What are the documents needed to raise a claim for insurance?
A duly filled claim form, copy of insurance policy, copy of registration certificate of the car, and invoice for all the repair costs are the documents that must be submitted to the insurance company to raise a claim.
With these commonly encountered questions addressed, it is now easy and straightforward to decide which policy is right for you. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.