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How many us actually take the time to read our car insurance policy document before signing up for an annual cover? While many would happily opt for the cheapest option available, others would be willing to settle for the first option they come across. Sounds familiar?
You may be in for a nasty surprise if you skip reading the policy document until your car’s been in an accident and you need to file a claim. But it would be too late by the time you realize how restrictive your insurance policy actually is! That’s exactly why it’s a good idea to spend some time evaluating your options and fully understanding what a policy entails before investing in one.
The fine print in your policy tells you how it works, its limitations, exclusions, terms and conditions. If you are unaware of these details, you may end up getting your claim rejected and accidentally invalidate your policy in the process.
The Souqalmal.com team explains why you must check the policy wordingthoroughly before signing on the dotted line.
If you are someone who enjoys off-roading, then you should choose an offroad add-on insurance cover that will be worth every extra penny you paid. Just be sure to check your policy’s limitations in terms of distance from a paved road. Sometimes insurance providers can put a limit from anywhere between 10m to 1km.
You are required to inform your insurance company about any modifications you make to your vehicle during the course of your policy. Failing to do this can result in policy cancellation or rejection of claims. After you inform the insurance provider, it is up to them whether they want to cover the modified parts in their policy or not. You may be asked to pay an additional premium for the extended coverage as well.
We all know that cars lose their value over a period of time. However, do you know how insurance providers calculate the depreciation rate for your car with regards to its current value? In some cases, the depreciation value calculated by an insurer is higher than optimum value. This is why you should always ask about the percentage your insurer is using at the time of calculating depreciation. This is an important factor that impacts your claim payout if a car is considered a total loss following an accident.
It is your decision to choose a policy with a high deductible, low deductible, or no deductible at all. However, it is important to understand how each of these options influence your insurance premium. Needless to say, a higher deductible will mean higher out-of-pocket expenses, and a lower up-front premium. If you see a policy with an unbelievably low premium, make sure to check the deductible specifications.
When you request for a quote, an insurer will calculate your car’s value based on the car make and model details you provide. However, you can change the value of your car within a permissible limit rather than simply going with the value determined by the insurance company. This is useful information, especially when you want to insure a luxury car that may be undervalued by the insurer.
If you are choosing garage repair instead of agency repair, it is important to check the list ofgarages authorizedby the insurance provider, along with the repair quality they offer. It is the insurer’s job to check that all repairs meet the quality benchmark established by the company. You should also confirm if your policy will pay for premium garage repair when planning to buy one.
If your car has been in an accident, it is recommended that you file for a claim as soon as possible. Any delays can jeopardize your claim and lead to it being rejected. Verify the timelines with your insurer and make sure that you file for claims within the stipulated time.
IncreasedPremium Upon Renewal
When you renew your insurance policy, you may notice that your premium has increased. There are a number of reasons that can be behind this. Have you been in an accident that was your fault? Do you have a poor driving record? Do you have a long history of past claims? If the premium is unreasonably high at the time of renewal, you always have an option to choose a new policy rather than renewing with your current insurer.
Natural Disaster Cover
The best part of choosing a comprehensive insurance plan over of a basic third party policy is that your car is covered against damage caused due to natural disasters. However, it is important to check all natural disasters your policy covers. Be sure to ask for all the pertinent details and go over the fine print when buying the policy, especially if you live in a disaster-prone area.
Don’t simply take the agent’s word at face value. Be sure to check and validate all the details of the policy that have been discussed with you on the phone or online. Lack of documentation and no proof of communication may result in fewer benefits than you agreed upon at the time of buying the policy.
Did you know that auto-renewal of your policy can actually cost you more even if it seems like a convenient option? Instead, compare insurance policies before renewal so that you can get the right coverage for your car, at the right price.
Contributed by:- Ambareen Musa, Founder & CEO of Souqalmal.com