When considering the purchase of car insurance, you’ll need to provide certain details concerning your location, car, and previous policy. Insurance providers typically request specific information before issuing a policy, ensuring that it aligns with your needs. To facilitate this process, they will ask you a series of questions related to your vehicle and personal information. Below, we’ve compiled a list of common questions asked by car insurance companies and the rationale behind seeking this information.
Selecting the perfect insurance plan for your car can be a daunting task, particularly if it’s your first time getting car insurance. The abundance of information available online might leave you with some unanswered questions. This article aims to address those queries and provide clarity to make the insurance decision-making process smoother.
Most common questions you need to answer while buying car insurance
What is your car model and year of manufacture?
When insurers inquire about your car, the model and year of manufacture take precedence as the most crucial questions. These details are essential for calculating your vehicle’s premium or insurance cost.
The car model reflects the approximate market value of the vehicle, while the year of manufacture plays a vital role in determining its depreciation. Providing accurate answers to these questions is of utmost importance when obtaining car insurance.
What is your vehicle number and mobile number?
The car registration number is a critical piece of information necessary to issue an insurance policy specifically for the registered vehicle. It ensures that the policy is exclusively linked to that particular car. Additionally, providing your mobile number is essential for insurers to send important notifications and other communication related to your insurance coverage.
Where do you stay?
The geographical location of your car registration significantly impacts the premium calculation. Generally, urban areas attract higher premium rates than rural regions.
Insurers evaluate various factors, including the frequency and severity of claims in a particular area, to set the base rates. Due to increased traffic congestion, accidents, and crime in urban centers, the number of claims is higher, resulting in higher insurance premium rates compared to rural areas.
Has your existing policy expired or not?
Renewing your car insurance policy before its expiry date is vital to ensure uninterrupted coverage. Insurers take into account whether your current policy has lapsed or not to calculate the premium rate for your car. At Chola MS, you have the option to renew your car insurance online, even if it has already expired.
Did you raise a claim in the last policy period?
If you refrain from filing any claims during the policy period, you become eligible for the No Claim Bonus (NCB). This bonus is applied as a discount on your renewal premium. Over time, the NCB can accumulate to as much as 50% if you manage not to raise any claims for five consecutive years.
When you renew your car insurance policy, any NCB earned during the previous policy period will be utilized to reduce the overall insurance cost, offering you potential savings.
Santosh Kumar is a Professional SEO and Blogger, With the help of this blog he is trying to share top 10 lists, facts, entertainment news from India and all around the world.