Insuring your car with the best car insurance plan is crucial, but buying it looks pretty perplexing, especially if you are doing it for the first time. Even after buying new car insurance online or offline, people may often think about some questions which they feel are too embarrassing to ask.
However, if you fail to ask such questions, you may end up being at a loss or buying car insurance policy, which may not be appropriate in your case. Finding the answers to such embarrassing questions is important to take corrective measures and eliminate confusion.
For this reason, it is better to build up confidence and ask questions. This article will help you resolve all your muddles by answering the most confusing queries you are afraid to ask the insurance company. So, read the article till the end to get complete knowledge regarding your car insurance policy.
Why is Four-wheeler Insurance Obligatory?
According to motor insurance law, having third-party car insurance is obligatory for every car owner to drive their four-wheeler on the road legally. If a car on the road meets any mishap, insurance companies allow an adequate reimbursement on the victim's losses without depleting their finances. In a nutshell, third-party car insurance protects third parties against unforeseen situations and unplanned liability by offering them financial aid. It does not cover the losses of the first party. Still, they get protection against the financial losses of the 3rd party.
Will Insurance Premium Increase with the Increasing Vehicle Age?
The impact of age on car insurance premiums remains the case with a comprehensive or standalone own damage car insurance policy only. Usually, the premiums are dependent mostly on the insured declared value (IDV) of the car. The IDV reduces with time, so the premium falls basis this factor. However, the third-party premium component is expected to rise every year as the Insurance Regulatory and Development Authority of India (IRDAI) revises it annually based on the cubic capacity of the car.
Can I Buy an Add-on Cover without Car Insurance?
No, you cannot buy add-on covers without a four-wheeler insurance policy. Car insurance add-on covers are additional products you can buy along with a comprehensive car insurance policy or standalone own-damage car insurance policy. But add-ons are not available with 3rd party car insurance, except for a personal accident cover.
What is IDV in a Car Insurance Policy?
IDV is an abbreviation of the insured declared value, which is the estimated market price of the car that the insurer determines and offers on the loss or theft to the policyholder. If the insured vehicle suffers total loss, policyholders get compensated with the IDV. However, the value of IDV in car insurance tumbles with time.
Can I Change My Insurance Provider and How?
Yes, you can change your car insurance provider. You can change the insurer by getting your insurance policy renewed by your desirable insurance provider. You can also renew your car insurance from a preferred insurer before its due date. Paytm Insurance, a renowned insurance marketplace, offers you the best car insurance purchase and renewal deals.
Should I Buy a New Car Insurance Policy Again If I Lost My Documents?
No, you do not need to purchase a new car insurance policy if you lose your documents. You can simply contact your insurance provider if your plan is active. Ask your insurance policy executive for a copy of your policy document. Then, they will send you a soft copy of the policy documents on your registered email id containing details of your insurance policy. You can even visit the official website of your insurer to download your policy document online.
Will I be Punished If I Don't Renew My Car Insurance Policy?
Yes, you will be punished if you drive your car with a lapsed/expired car insurance policy. As per the law, having a new or renewed car insurance is mandatory, and if you are found without a car insurance policy or with expired car insurance, you will have to pay a fine, or get imprisonment, or sometimes both. Thus, the renewal of car insurance at times not only saves you from legal troubles but also aids you with financial crises.
Should I Specify the Usage of Vehicle While Buying an Insurance Policy?
Whether you buy a car for personal or commercial use, you must specify the usage while purchasing a car insurance policy. Even though the method of insuring the personal or commercial vehicle are similar, you still have to specify the usage as the commercial cars is a different vertical insurance plan.
Are Car Insurance Policy Valid Across Borders?
Yes, car insurance policies are valid all over India. However, if you are going to shift to a different Indian state permanently, you will need to inform your insurance company and follow the procedure prescribed by your Regional Transport Office (RTO).
What is NCB in Car Insurance?
NCB is an abbreviation of the term no-claim bonus, a discount offer to the policyholder for not filing any claim during the policy year. NCB in car insurance accumulates and goes up to 50% if the policyholder does not claim for five consecutive years. It applies to the policyholder at the time of policy renewal.
If you are planning to buy new car insurance, it is vital to resolve all your queries and be aware of every aspect of car insurance before making any decision. You can purchase new car insurance online with Paytm Insurance, which offers the best and quick online services for paying insurance premiums. You can also check the best car insurance companies and compare car insurance policies with Paytm Insurance.
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