FAQ

Automobile Insurance Policy

Motor Insurance - What is meant by Motor Insurance?

The Road Traffic Act says, Motor Insurance is obligatory by anyone who is either driving or keeping a vehicle on the roads. The insurance company under the Motor Insurance policy, you have to compensate a premium in exchange for the insurance company covering your risk of driving.

How much auto insurance do I require?

Under the Road Traffic Act, when you are using your own vehicle in public place or on a road. It is compulsory for all the motorists to have minimum liability for injuries to others (including passengers) and also for the damage caused to third party's vehicle.This minimum cover level is often pertains to Third Party Cover. If you do not have at least this level of cover and you are driving a car, then you are against the Law.

What are the different categories of motor insurance are available to take out?

Cover comes in three levels, they are:

1.Third Party Only Cover : Usually this includes:

• Liability for injuries to passengers, including other people

• -Liability for damage to third party's property. Liability of your passengers for an accidents, if they are at-fault.

2.Third Party, Fire and Theft - Usually this covers as per Third Party Only and also:

• Theft or Fire – This pertains to certain conditions, for example: If your car is not normally kept in a garage overnight, theft cover may be excluded. There is usually an "excess" - which is the part of the cost of the claim that you will still be responsible for - following theft.

3.Comprehensive Coverage : Usually this covers Fire and Theft

• Accidental damage that is caused to your own vehicle. Once again there may be an "excess" for this.
• Personal accident benefit : Certain amount will be paid out at an event of death or specific permanent disablement of the policyholder. This can sometimes, depends on the policy and also on the policyholder's spouse or other member of their family.
• Medical expenses up to a declared limit.
• The loss of or damage to the personal things that are in the car, once again up to a stated limit.

 

I don't know the registration number of a car, would I still get a quote?

you can still get the quote for auto insurance. But, to initiate the auto policy insurer needs the correct registration number.

Will my motor insurance cover me to use other cars?

This will rely on the particular type of motor insurance policy that you bear. It is usually only open to those people aged over 25 and usually available to people who work in the motor trade.

After a claim, do I fall back all my no claims bonus?

In case of an accident that was deemed your fault, or an accident where you have had to make a claim on your own motor insurance, you would normally be stepped back a number of years.

This wholly depends on your insurer, however almost they will step you back for 2 years, from a maximum of 4. For example; if you had 6 years no claims bonus without protection and had an accident that was your fault, you would step back to 2 years no claims bonus.

This is because you would be taken back from the maximum of 4 years, and will also not receive your extra year no claims bonus on your auto insurance renewal.

Physical Damage Coverage

Q. What is meant by collision coverage?

If your vehicle collides with an object, Collision coverage compensates for physical damage of your car. In the event of an accident, collision coverage will feed to repair your vehicle up to the amount equal to the market value of the vehicle before the accident. Your insurer will pay for such damage even if the collision is by your fault.

Collision premiums are rely on the make and model year of your car. You should estimate the current market value of your car and your ability to afford a similar car. You may not need this coverage if your car has decreased in value or if you can afford to replace it.

Q. What is meant be comprehensive coverage?

Comprehensive coverage, this compensates for the damage caused to your vehicle resulting from fire, malicious mischief, flood, hail, glass breakage, wind, falling objects, civic commotion, or hitting a bird or an animal. It is important to know that most policies covers hitting an animal under comprehensive, not collision, insurance.

Comprehensive coverage also makes up if your vehicle or parts of it, such as a battery or tires, are stolen.

Q. How is the deductible for comprehensive or collision coverage enforced?

Deductibles for comprehensive or collision coverage are enforced at an each accident. A deductible is the dollar amount that is paid from your pocket toward the loss before the insurance company begins to make payments on the loss. For example, if you had a comprehensive loss (an animal hit) and the same day had a collision loss (a rock hit your windshield), your policy allows the insurer to apply two different deductibles.

Q. Financing a car is enough or do I need to buy motor insurance?

Even though if you finance the car, the financial organization will ask you to have a car insurance. The terms of your loan would requires you to provide the comprehensive and the collision insurance. This is because the financier (bank) considers your vehicle validatory for the loan. If your policy lapses, the bank asks for force coverage (obtain a policy) and add it to your loan. Forced coverage gives protection to the bank, not you.

The Claims Process

Q. Can I ask the insurance company for replacement of my car?

The personal auto policy is not a replacement policy. Coverage for your car depends on actual cash value of your car. The actual cash value (ACV) of your car is nothing but its current market value. Therefore, the insurance company's duty is to repair the car based upon its actual cash value not its replacement cost.

Q. What are aftermarket parts?

Auto repair stores may use aftermarket and/or used parts when repairing or replacing a damaged part (i.e., bumpers, bumper covers, and associated bumper parts, etc.). Aftermarket parts are produced by the companies other than the original equipment manufacturers (known as OEM parts).

Auto insurance deals do not generally specify what parts will be used. You may request not to use aftermarket parts to repair your motor, but you are responsible for any repair costs that surpasses the final claim settlement negotiated with the insurer.

Q. The other driver's insurance company request me to sign a release on my injury claim. How far I can delay this?

Sign the release when you are quenched with your total settlement. Get a letter from your doctor evaluating the cost and length of your future medical treatment. You can, of course, consult an attorney prior to accepting a settlement.

How can I reduce my premium?

Every auto insurance company has its own package of special discounts to fascinate customers. Most insurers facilitates discounts for at least a few of the following : An accident-free drivers discount; a package discount for insuring your home and auto with the same company;multiple auto discount; good student discount; non-smokers discount; and passive restraint discount (for vehicles with air bags or automatic seat belts). You may also consider higher deductibles for your comprehensive and collision coverages.

Q. Do my insurance company increase my premium because of an accident or traffic ticket?

Your insurer may charge an extra fee, a surcharge, if you are indulged in a chargeable accident or were ticketed for a traffic offense. This definitely results in a higher premium. However, rules are different in state to state and company to company.

What happen if I meet with an accident?

Depending on your car cover, the company will arrange for your vehicle to be recovered and you and your passengers will be taken home or to your destination safely. If you are at fault then you have to pay to the other party's vehicle damage and to the injuries that he/she receives and even to his/her passengers if any.

How to make a claim?

If you have an accident. Make a call to 24-hours claim service of your insurance company. The incident manager will take the details of the incident. Then he begins to sort out your problem. There are no forms to fill in, your incident manager confirms whether your policy covers for the incident; how much you have to pay and the other steps involved in your claim will be settled down.