Answers to 10 Embarrassing Car Insurance Questions
Updated On Oct 15, 2023
It can be confusing to buy car insurance, particularly if you are insuring your car for the first time. While there is a lot of knowledge available on the website, and the consumer service executives of the insurance firm are there to help you out, yet you may feel embarrassed to ask any queries.
It can sound as if purchasing auto insurance is a daunting task. There are also questions that you might have and which you might be too embarrassed to find the answer to. You can find out that car insurance is less daunting than it sounds and that, you can easily know more about it, particularly with all this quick knowledge.
Answers to Questions that A Policyholder May Feel Embarrassed to Ask
Here are answers to 10 questions that you may be embarrassed to ask for car insurance are listed below.
1. Is Car Insurance Mandatory?
If you want to drive your car in India, the Motor Vehicles Act, 1988 makes it compulsory to buy car insurance. Failure to do so would lead to penalties. It is mandatory to buy a third-party liability car insurance policy at least. It is recommended, though, to go for comprehensive car insurance.
2. Can I Only Buy Add-Ons?
No, since they are not individual products, you cannot buy only the add-on covers. Add-ons are complementary covers that can be bought together with a comprehensive car insurance plan.
3. What is No-Claim Bonus (NCB)?
It is a discount that is available during the car insurance renewal policy in case you have not made any claims during the tenure of the policy. It is cumulative and can go up to 50 percent.
4. To Reduce My Claim Can Any Action Be Taken by Me?
Yes, at the time of renewal, you can collect NCB over the years to gain a discount. You may also install anti-theft equipment accredited by the AAI. The insurance company would see this as reducing the chance of fraud and therefore offering you a lower premium.
5. What are Deductibles?
Deductibles are a certain amount you will have to pay as the policyholder in the event of a claim. They are both obligatory and voluntary in nature. Voluntary deductibles will lower the premium; however, while raising a claim, they are not advisable since they incur unnecessary costs.
6. What is Insured Declared Value (IDV)?
IDV is the estimated selling price of the vehicle that the insurance provider decides. It depreciates over time and you will be paid for the IDV of your car where you make a claim.
7. How Can I Be Covered for the On-Road Price of the Car?
You should add to the basic/standard car insurance policy the Return to Invoice cover. Through this, in the event of a claim, you will be paid for the entire road price of your vehicle instead of the depreciated IDV.
8. Should I Specify the Usage Purpose of the Car?
Yes. While the method of insuring a commercial/personal vehicle is identical, when having the car covered, it has to be specified. Insuring commercial vehicles is a separate vertical insurance scheme.
9. Is Car Insurance Valid Across India?
Yes, car insurance in India is valid. However, if you intend to travel permanently to another Indian territory, you will have to obey and notify the car insurance provider of the process specified by the appropriate Regional Transport Office (RTO).
10. How Can I Change My Insurer?
By getting your car insurance renewed by your preferred insurance broker, you can change your car insurance provider.
Before buying a car insurance policy, it is essential to be aware of the different aspects of the method of buying car insurance. You can then feel more secure and knowledgeable about car insurance with this experience.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.