What are the frequently asked questions about motor insurance? 27^th November 2019

Getting motor insurance regardless of the fact that whether it is new or old, is always confusing. Technical jargons, guarantee amount, clauses, picking motor insurance company, etc. are some things which everybody does not understand, and it leads them to make wrong decisions. They all look lucrative from afar, but which is the right one.

Hence, here we have compiled a list of frequently asked questions that will help you in getting the right motor insurance for you.

Question: What does a motor insurance cover?

Motor insurance covers you against any financial burden due to damage of your insured vehicle.

Question: Does the motor insurance offer different coverage types?

Yes, different types of insurance coverage types are available such as bodily liability, comprehensive, property damage liability and uninsured and underinsured and collision. You can choose the insurance coverage type as per your needs and requirements.

Question: Is buying motor insurance mandatory?

Yes, it is mandatory to buy motor insurance though the laws of carrying insurance vary from state to state. It is recommended you visit the online website of the government transportation of your state to make sure that you got the right motor insurance.

Question: Is a motor insurance expensive?

Yes, motor insurance is relatively expensive. Though you should also consider the credit report and driving the history of your vehicle while buying insurance.

Question: What happens if I forget to pay the premium fee for my insurance policy?

You will get a warning notice from the motor insurance company. But if you forget paying a premium fee over and over again, they can either issue late charges or will cancel your policy. So, it is recommended to pay your premium fee on time.

Question: Can I change the motor insurance coverage if I want to change it?

Yes, if you want to change the motor insurance coverage then you can, but you might need to pay a cancellation fee. But if you wait till the policy maturity then you can change the coverage without extra fee.

Question: How can I get a discount on motor insurance?

Discounts are quite common when it comes to motor insurance. Different motor insurance companies offer different deals and discounts on motor insurance so you can choose the right one as per your needs and requirements.

Question: Can my gender affect the amount of the premium fee?

Yes, gender affects the premium rates of motor insurance. According to the statistics, male drivers are generally involved in more accidents. Therefore, companies offer motor insurance at a higher premium fee to males as compared to females.

Question: Can I get motor insurance even if my vehicle is more than 20 years old?

It depends upon the shape and condition of the vehicle you have. If your vehicle is not in a condition to get coverage, then it is not recommended you to get higher coverage and it does not make sense to spend a higher amount onto it.

Question: What is No Claim Bonus?

It is a discount after a claim-free year or an incentive for driving safe and avoiding accidents.

Question: What are the documents that are required to be submitted for a Motor Insurance claim?

Required documents differ from company to company but some of the most important document that would be required are: Claim form, registration copy of the vehicle, an estimate of the loss, original repair invoice and payment receipt.