When one decides to buy car insurance, it is natural to have several questions regarding the insurance company, the type of policy, etc. Likewise, insurance companies will also have some questions for the policyholder. Read further to know more about questions car insurance companies ask and why:
What Is Your Car Model and What Is the Year of Manufacture?
The first and foremost question that any insurer would ask before providing insurance, is the model and year of manufacturing the car. This serves as a very important detail in calculating the insurance premium. The car’s model indicates the approximate market value of the vehicle, the year of manufacture helps determine the depreciation of the vehicle. These two factors help in determining the Insured Declared Value
What Is Your Vehicle’s Registration Number?
The registration number of the vehicle is vital to insure a vehicle. This way the policy is exclusive to that vehicle. Along with the registration number, the mobile number of the policyholder is also important for insurers to send notifications and insurance-related information
What Is the Purpose of Your Car?
Insurance companies would like to know whether the car is being used for commercial or personal use. A commercial vehicle generates income by transporting goods or passengers. The car insurance premium for commercial vehicles differs from personal vehicles. Typically, commercial car insurance attracts a higher insurance premium compared to personal vehicle insurance
Where Do You Live?
One of the most important factors that determine a car insurance policy is a location of where the policyholder lives. If one lives in an urban area, the chances of accidents are higher, and one may have to pay a higher premium. Likewise, if one lives in a hilly region, there is a high risk of landslides or accidents, and insurance companies might charge a higher insurance premium. On the other hand, people living in small towns and rural areas might have to pay a lesser premium
What Type of Fuel Is Used?
Insurance companies must know the type of fuel used in the car to calculate the insurance premium. If one has installed a Compressed Natural Gas (CNG) kit, the insurance premium will be higher since, the maintenance of CNG kits is slightly higher. One might even have to pay an additional premium for insuring the CNG kit
How Much Is Your Existing NCB?
Insurers generally ask if policyholders have an existing No Claim Bonus, which is an accumulated discount when claims are not made over a policy period. One can avail up to 50% discount and if one has an existing NCB, they will accordingly receive a discount at the time of policy renewal
Do You Have an Anti-Theft Device Installed in The Car?
If one has an anti-theft device installed in the car, it reduces the risk of the vehicle getting stolen and insurance companies offer discounts to such cars.
Who Is the Nominee?
The policyholder will be asked to mention the nominee when the policy is bought. In case of the demise of the policyholder, the insurance policy will be transferred to the nominee. If the nominee is not mentioned, the policy will be transferred to the legal heir
Would You opt for Voluntary Deductibles?
Voluntary Deductible is an amount that the policyholder is willing to pay when a claim is raised. If the policyholder offers to pay voluntary deductibles, there are chances of the insurer reducing the insurance premium
Insurance companies ask many questions to make sure they have the required information to assess the risk of coverage and how much of a liability the policyholder might be. The higher the liability, the higher the insurance premium and vice versa. To know more about car insurance policies, click here!