Auto insurance facts that the company hides from you

We buy car insurance and pay a timely premium in the hope that we will never require to file a claim. However, unfortunately, if we need to file any claim, we expect the insurer to provide us claim. The insurance providers always work in a way to safeguard their own interests. That’s the reason why the companies try to hide some important auto insurance facts from the insured.

Whenever you buy auto insurance, try to do some research and compare among the various options always. It helps you to purchase your vehicle’s protection satisfying your needs. Make it very clear in your mind that purchasing a cheap car insurance policy is not going to help you at all. You have to check both the budget and the coverage of the insurance.

Once you will be happier to pay a lesser premium for your insurance, but when you will it of no use if it will not be covering the protections you require. At the time of checking various insurance plans, focus on the covers provided by the company. Also, try to find out the hidden auto insurance facts.

In this article, we will try to disclose some of the major auto insurance facts. Hope this will work for you.

How Insurance providers try to save their money

Insurance providers try to save their money by declaring your vehicle a total loss.  A major road mishap can cause huge damage to your vehicle. In this case, you will pray that your insurance provider will declare your vehicle as a total loss. But wait, it can fire you up back.

In case your vehicle is declared a total loss, you will get a claim which is of lesser worth than what a new vehicle will cost you. Having your vehicle declared total loss will give more benefit to the insurer. It will be of a loss to you. And since it’s a total benefit for them, they will always go for it.

Whom to approach for buying insurance

As you all know, there are numerous ways to buy auto insurance. Whether it be your car dealer, a broker or you directly contact an agent to buy one.

Be assured that they are a member of the Insurance Regulatory and Development Authority and they have a valid registration number. It speaks about their authenticity.

Here is some pointer that will help you regarding whom to approach regarding insurance.

  • Dealer- dealers are those from where you buy your vehicle. They will explain to you some offers with comparatively lesser premiums. But they are going to adjust that discounted amount in the payment of your vehicle. As a result, you will be paying much higher than what you did save. Purchasing an insurance policy online will let you save plenty of money and with the same benefits.
  • Brokers- car insurance brokers have the IRDA license and they aren’t belonging to a single company. They are registered with various companies and they provide you various deals from all those companies. Since brokers do not belong to any particular insurance company, they represent you as a client in the court of law.
  • Agents-  each agent represents a specific car insurance company. A company hires them so that there is always a medium to contact between the agent and the insured. They do not offer you policies from other companies. It means that you might miss out on a great plan just because an agent is not offering that plan. An agent will not represent you in the court of law.
  • Web Aggregators– A web aggregator will not only allow you to check the insurance providers but also provide you with a platform to compare among them all. So this is considered to be the best way to buy insurance.

Mandatory Timely Checks

It is always suggested to evaluate your auto insurance policy at regular intervals. The best time to evaluate your policy is when your vehicle insurance plan expires or its due date is close to renewal.

Check if your existing insurance provider has offered you a satisfied customer care service or not.

It’s a good idea to evaluate if your insurance policy cover is sufficient according to your insurance needs. If you have purchased a new vehicle, it’s an excellent idea to upgrade your coverage.

Also, Read- Myth About Health Insurance Policy