Topmost Car Insurance Myths – Busted

Do you know everything about the car insurance your broker or insurance company is offering you? You probably don’t!

Like in driving, where most of us are in misconceptions such as “I am perfect in driving and accident will never happen to me” or “that animal (dog or cow) will not jump in front of my vehicle” abound, the car insurance also has many myths.

This topic enlightens to the people looking for car insurance and having many myths. Read below these myths and misconceptions busted:

• Myth: Buying Car Insurance is a clumsy and complex process

Reality: Buying best policy plan or renewing car insurance has never been easier.

The process has become easy with internet technology. Through filling some basic information, customer will get an instant quote of premium plan and can get policy at their place by following few steps.

In case of policy renewal, some insurance companies follow advance technology such as Photo Quote option, wherein customers only need to upload photo of the existing policy. After that, they will receive a quick quote to renew their policy.

• Myth: If I will change my insurance company to another, I will fail to get my NCB (No Claim Bonus)

Reality: Customer will get their NCB bonus whether they change their insurer

Customers will get NCB benefits if they don’t file any claim during the policy period. This benefit will be added as a discount to the premium for next year renewal. And, yes definitely NCB is transferable to other insurer. Customers should make sure the transferable period while purchasing the policy. Some insurers provide this till the expiry date and some other consider within 90 days of expiry.

• Myth: Car Insurance Policy gives protection against accidents only

Reality: Insurance is not only covers accidents. It also covers against man-made and natural disasters.

Car insurance also provides protection against the losses/damages incurred by the natural disasters such as earthquake, flood, storm, hurricanes, landslide etc. and man-made disasters such as terrorist activity, theft, riots etc.

• Myth: If an accident incurred, the only way is to pay from pocket first and then follow many difficult claim process

Reality: Either the customers need not to pay or if pay, they will get reimbursed afterwards.

Customers can find a list of networked garages in their area online i.e. the one associated with the insurers in their list. In this case, insurer will directly settle the expanse with the garage without any issue.

In case, if the customers are unable to visit a networked garage for some reason, they can claim reimbursement and insurer will pay them directly.

• Myth: If my car has been damaged /lost, I can claim a total sum that will be equivalent to the price of a new one.

Reality: This is not the true logic.

The real fact is that if a customer files a claim, he/she will get the financial support of the condition of the vehicle, which was in before the damage occurred. The true value is calculated on the basis of the current value and depreciation rate of the car.

Also Read

List of IRDA Approved General Insurers

IRDA circular about Rejection of Claims

List of Top 5 Insurers in Canada

Here is a list of top 5 insurers in Canada:

• Empire Life

Established in 1923, the company is one of oldest insurance companies in Canada. Empire Life has 29,880 partners with professional financial advisors, agents, managing general brokers, group producers and mutual fund dealers. The top brand has offered its services to more than 7,000 clients.

Empire Life offers a full range of financial products and services include Life insurance and critical illness coverage, group life and health benefits, RSP plans and investment options.

Read more at Empire Life

• AXA Canada

With a strong network, AXA Canada has distinctive business portfolio, serving more than 100 million smiles in 64 countries. The company is providing its expertise in Property/Casualty, Life & Saving, and Asset Management.

The strategy, technologies and multi-channel distribution used in the business model allow its customer to select for best services.

The company is spread in Europe, North America, America and Asia Pacific with its wide and diverse networked operations and made its reputation in high-growth markets.

Read more at AXA Canada

• Blue Cross Canada

The company is a renowned name in Canada, known for reasonable, quality supplementary individual health and travel insurance coverage.  Blue Cross Canada also offers its trustworthy and personalized services for group benefits and group life insurance.

The plan offered by the company allows its customers to save on medical, vision care and more services across Canada.

Read more at Blue Cross Canada

• Gore Mutual Insurance Company

An outstanding company in insurance industry, the company commits to provide its excellent services to the customers.

Established in 1839, the company is one of the oldest Canadian Insurers. It is names as the first insurance company in British Columbia and Ontario according to the IBABC (Insurance Brokers Association of British Columbia) and IBAO (Insurance Brokers Association of Ontario).

Read more at Gore Mutual Insurance Company

• Hub International

The company provides property/casualty, life and health insurance to its customers. Additional services such as investment and risk management solutions and employee benefits are also offered by the company.

Ranked among the top brands worldwide, Hub International was established with the merging of 11 private Canadian insurers in 1988.

Read more at Hub International

Know the coverage in Home Insurance Policy

Today’s lifestyle has been gradually changed. Because of the life full of stress in day-to-day affairs, human-beings are dependent on machines, so household possessions have increased considerably.

Life of every human-being is unimaginable without Fan, AC, Refrigerator, Washing Machine, Microwave and more. Whenever, a person buys an appliance, he/she have to keep in mind the wear and tear condition of that and the maintenance cost allied with it.

Generally, each appliance comes with a manufacture warranty period of one-three years. During this period, Manufacturer Company takes care of the damages.

After this warranty period, how you decide to pay for the maintenance of the appliances? Home Insurance offers this coverage.

Customers have two options whether they can extend warranty period by manufacturer or can buy home appliance insurance cover.

• Is extending the warranty period worthy?

Extending the warranty period is a one option to opt for once the warranty period comes to expire. Retailer might force customers to extend it. But extend the warranty for each appliance turns out to be more expensive.

• Why to buy insurance coverage to household goods?

There may be many causes that can lead to the damage of the household goods. Damages such as mechanical breakdowns, physical damage, theft or natural disasters or damages due to power fluctuations may lead a major loss. Through home insurance, customers can claim compensation.

Now-a-days, to attract the buyers, dealers are selling appliances with insurance policies. Customers should read the fine print carefully before they take the plan.

• Selecting Home Insurance Policy Plan

Buying home insurance policy is the best option for everyone. Extending warranty of each appliance might be expensive. This insurance policy comes in a package that covers against:

• Domestic appliances
• Damage due to fire
• Baggage cover
• TV, DVD and music system
• Jewellery and other valuable
• Theft
• PA cover
• Coverage of house

While buying the policy, one should opt for the plan as per their requirement. If a person lives in a rented house, there is no mean to buy a vast coverage plan.

Also Read:

Are Private Sector Insurers as Trustworthy as Public Sector Insurers?

How to Get Easy and Speedy Insurance Renewal?

Renew Policy with Same or Different Insurer Online

Know Limits and Restrictions Levied in the Health Insurance

How to Opt for a Safe Insurance Company?

How Insurance Company Decides Auto Insurance Premium for a Customer?

When purchasing for best-suit auto insurance, the insurance company collects information in order to quote the amount of the premium. Common information such as car manufacturer name, car model, social security number and estimated miles driven per week are asked by the insurer to the policyholder.

Apart from this information, insurance company also inquire the lifestyle, education level, occupation, number of the children for the auto insurance policy.  Here is the inside scoop on this topic:

Classification to Calculate Risk

To disregard the ambiguity, insurance companies rely on predicting the risk depends on the many factors such as accident occurrence, vehicle theft, any type of damage or loss related to vehicle and the how many times claims are done for that.

In general, insurance agent or company spend about 10-15 minutes with the customer that is not enough to understand the risks factor. So they analyse the risk by filling a statistical data.

Insurers also use predictive modelling techniques to categorized customers based on the statistical data information. Some personal information is also gathered that can either boost or minimize the cost of auto insurance.

Financial Status

Insurance companies also analyse customers’ CIBS (Credit Based Insurance Score) based on the various information such as payment history credit accounts, bankruptcy etc.

Each insurance company has its own protected system to calculate the CIBS of the customer. In case of bad credit record, insurance application may be rejected. Moreover, maintaining good credit record and paying bill on time can save money on the insurance.

Customers’ Lifestyle

Single person are perceived as more risky than the married people. Occupation and education also play a great role in deciding the premium. If you are either an engineer or teacher or scientists, you have to pay a lower premium.

On the other hand, if you are currently enrolled in college and receiving good grades, it will help you get lower premium. Multiple insurance policies also help in lowering the policy premium.

How, Where, When and What Customer Drives

New vehicle has more chances of replacement in case of damage and so will always cost more to cover than old vehicle. How you drive, accidents occurrence and geographic location also matter in analysing premium for insurance policy.

FAQ about Auto Insurance Policy

List of Top Five Insurers in Germany

Here is a list of Germany’s Top five insurance companies:

1)    Munich RE

One of the largest insurance and reinsurance groups, Munich RE offers a wide range of insurance products and assistance.

Services offered are Comprises Composite Risk Solutions, Advice on Balance-Sheet Management, Widespread Consultancy. The company also provides its services in healthcare with its aim to provide affordable across the world.

ERGO, Primary Insurance Group of Car, Property, Health and Life insurance with Reinsurance operations has named as Munich RE in 2009.

Know more about Munich RE

2)    ERGO Insurance Group

Topmost company in Germany, it has its operation in more than 30 countries across the world. Products offered are Life, Car, Health and Home insurance for all type of business enterprises.

The company also provides comprehensive range of Financial, Annuities and Consultancy Services.

Know more about ERGO Insurance Group

3)    Generali Deutschland

With an extensive variety of products, the company offers primary insurance and related financial services for all small, medium and large size clients in Germany.

Generali Deutschland offers its clients optimum solution with innumerable sales channels. Products offered are Life, Property/Casualty and Health insurance.

The brand portfolio is made up of nine brands, in which four insurers are multi-line having collaboration with five single-line insurers.

Know more about Generali Deutschland

4)    Allianz

One of the greatest insurance companies, Allianz is offering its services in more than 70 countries with happy smiles of approximate 85 million customers.

Insurance products offered are Life, Health and Property/Casualty for both personal and corporate clients. Assistance services, Global Corporate Customers, Global Automotive and Reinsurance and many services are offered at the company.

Know more about Allianz

5)    ARAG Group

One of the top international companies, the group operates in 15 countries all over the world including United States. The company is the leading family-owned enterprise functioning as a versatile, popular and self-regulating quality insurer.

Products offered at the company are composite, life and health insurance.

Know more about ARAG Group

How to Pay Premium Plan for Life Insurance Policy

Premium for life insurance is paid yearly. But there may be a risk of policy lapse if the premium is not paid on or before expiry. Life insurance plan has many options to pay the premium. Customers can select as per their convenience.

•   Online Mode

To pay online, customers can log on the website of insurance company and select online premium payment option. Information such as PAN and policy number is required to fill the form. Payment options available are Net Banking, Debit Card, Online Banking and Credit Card.

One should make sure that he/she has saved the online premium paid print/receipt copy provided by the insurer after completion of the process.

Payment can also be processed by filling the bank specifics of the insurer on the bank of policyholder.

•   Auto Debit Mode

One of the most convenient option, wherein the customers can place an auto debit instruction by using their credit card with the insurance company. They can also do this by registering an ECS or NACH.

Insurance companies already have collaboration with banks or other electronic bill processing machines. After registering through this process, the premium amount will automatically deducted on or before the scheduled date. In this case, relevant form is required to fill with cancelled cheque that will be submitted to the insurer.

•   Branch Drop Box Option

Insurers also have collaboration with the banks to offer the cheque drop facilities. This premium cheque can be submitted to the insurer or the insurance broker. Online NEFT and RTGS option are also available.

•   Mobile Phone Mode

Premium payment of life insurance policy can be processed through phone. This process is done by calling an assigned authorized person of the insurance company. Credit card information is needed to make payment done.

Know your Rights and Duties for Policy

How to Get Easy and Speedy Insurance Renewal?

Renewing insurance policy is a tricky challenge but taken wisely can make smart decision. Moreover, launches of many online portals for comparing premium plan and purchasing with lots of benefits is a great way to save money as well.

Here are some tips to get easy and speedy insurance renewal:

•   Get Renewal of the Policy on Time

If the renewal of the policy is not done at the expiry of policy, customers have to pay some penalties. So the best thing is to done renewal on time to avoid such penalties. Best way is to start working on renewal before expiry because it will take some time in searching, comparing and opting for the right one. Customers can also choose different insurers for renewal by comparing various competitive plans from various insurers. This will help to get renewal easily.

•   Get Set Ready Your documents

Get ready all your earlier policy documents and claim-related papers. At the time of the renewal, insurers need these documents to read the claim history and provide the profits such as No Claim Bonus (NCB) accordingly.

Also manage your documents and check the list such as manufacture name of the vehicle, car model, registration city, brand details, RTO address etc. These factors are also important at the time of renewal in order to avoid any issues.

•  Get Easy Renewal from Online

Now everything has become easy due to internet. Getting renewal online is a brilliant option. It saves time and avoids complex manual paperwork. Just register online at the insurer’s website and fill all the necessary information mentioned with important documents. After filling all the requirements, click on the renewal button or tab.

Make sure, you have filled all the details including insurance policy number, registration details and information correctly.

After submitting the information, the insurer will send you a quote shortly. This is the easiest and speedy way to get renewal without any hassle.

Option to Select Different Insurers for Renewing Policy

If the policyholder wants to renew the policy from different insurers, he/she can select that. Customers just need to collect all the documents and other required information of the previous year’s policy.

One should keep the points in mind in order to avoid hassles.

Also read How to Lower the Cost of Car Insurance Renewal?