< Back

Motor

big-banner-question-ask

Car insurance providers ask a few questions when you purchase or renew a policy to better understand your insurance needs. Check out this post to know 7 such questions.

Choosing the right car insurance policy is about understanding your insurance needs and matching them with the available products. But to assist you in selecting the right insurance policy, it is essential for the insurers to know about your requirements as well.

For this reason, when you purchase or renew car insurance online or offline, the insurance providers ask a few questions which should be answered as accurately as possible.

1. What is your car’s make, model, and manufacture Year?

The insurer would first like to know your vehicle's make, model, and manufacture year. The make and model help the insurer know the approximate cost of the vehicle. Similarly, the manufacture year enables them to calculate vehicle depreciation.

Insurers consider these details to calculate the premium you’ll have to pay for the selected insurance policy.

2. What is your Car’s registration number?

You’ll also be asked to provide your car's registration number when purchasing or renewing a car insurance policy. The registration number works as an identification number that proves vehicle ownership and RTO registration of the car.

As the insurance policy will be issued on the registration number you provide to the insurer, ensure you cross-check the number before submitting.

3. What is your mobile number and email ID?

The insurer will also ask for personal details, like your mobile number and email address. These details are generally used by insurers to send insurance-related communication and other notifications.

Moreover, when you purchase car insurance online, the insurance certificate and other documents are sent to your registered email address.

4. Is the vehicle used for personal or commercial purposes?

You might be using your car for personal or commercial purposes. If it is a commercial vehicle, it’ll pose additional risks to the insurer compared to a car only used for personal purposes. As a result, the premium for commercial vehicles is slightly higher than for personal vehicles.

Note that insurers will reject your claim if the vehicle is used for reasons not explicitly disclosed to the insurer. So, if the vehicle is used for commercial purposes, ensure you purchase insurance for a commercial vehicle.

5. Where do you live?

The insurer would like to know where you live, as location also influences the insurance premium. Car insurance policies are generally slightly costlier in urban cities than in rural areas.

It is because traffic congestion, theft, and accidents, are more common in cities. Due to this, insurers are required to carry a higher risk level than insuring vehicles in rural areas. So, the higher risk is compensated through higher premiums.

6. What is the status of your current car insurance policy?

If you’re renewing car insurance online or offline, the insurer would also like to know whether your current policy is active or expired. The information is also used in premium calculation.

It is wise to renew car insurance before the current policy expires to ensure complete protection at all times. Remember, you lose the safety net of car insurance if your policy has already expired.

7. Do you have existing NCB?

No Claim Bonus or NCB helps reduce insurance renewal premiums up to a specific limit if you’ve not filed a claim in the previous policy year. The NCB ranges from 10% to 50% for 1 to 5 consecutive claim-free years.

So, the insurer would like to know if you have an existing NCB to deduct the applicable discount from the insurance premium.

Be cautious while purchasing car insurance

The insurer will use your answers to these questions to generate your car insurance policy. Any error from your end could lead to severe problems, like claim rejections, in the future. So, provide accurate details and cross-check all the information before submitting.

Disclaimer: The content provided is for education and informational purpose only, none of the information contained in our blog amounts to any form of opinion or advice. Please go through policy related documents carefully or consult an expert before making any insurance-related decisions.

RELATED ARTICLES

Car Insurance Benefits

Motor

Benefits of car insurance

A car insurance can help you offset substantial financial loss that you may incur because of damage caused to your car

Add-on covers for Car Insurance

Motor

Must have Add On Covers for Car Insurance

A basic comprehensive car insurance covers damage to car, 3rd party liability and theft & loss of vehicle.

Car insurance

Motor

Right time to buy vehicle insurance

Buying a vehicle insurance is an important decision and you need to ensure that you make a timely purchase of vehicle insurance

know-how-car-insurance-premium-is-calculatedcde

Motor

Know How Car Insurance Premium Is Calculated

Car insurance premium calculation is based on various important factors. Learn about these factors.

rules-to-follow-for-safe-driving-th

Motor

Rules to follow for safe driving

Know About The Important Road Safety Rules To Follow

 

 

significance-of-a-motor-vehicle-insurance-policy

Motor

Significance of a motor vehicle insurance policy

Learn all the benefits a motor insurance policy has, aside from financial security.

maintenance-tips-for-car-engine

Motor

Maintenance tips for car engine

Follow these engine maintenance tips and buy a car insurance with engine protection cover to keep engine secure.

Monsoon Tips Car

Motor

Monsoon Tips for Car

Simple tips to help you stay safe and keep your car moving ahead during monsoon.

What is Zero Depreciation Cover

Motor

What is Zero Depreciation Cover

Read on to understand what is zero depreciation car insurance cover and how it works.

Questions Regarding Motor Insurance Policies

Motor

Questions Regarding Motor Insurance Policies

Essential questions about motor vehicle insurance policies in India.