Top 5 Reasons Of Reading Your Car Insurance Documents Thoroughly

If you were given the option to choose between reading the policy document of insurance and doing a mundane task, what would you choose? It is almost a no-brainer. Most of us would rather do a mundane task than having to go through the insurance policy document. The policy document is a rather lengthy paper which has jargons and terms which a common man might not be able to understand.

Most of the insured people do not give much importance to reading a policy document. However, it is one of those things that you must do. A policy document is essentially a legal binding between you and your insurer. During your car insurance renewal, the document consists of details such as the vehicle insured, the breakdown of the premium, the period for which the policy is active and so on. All these details are essential and play a pivotal role at the time of claim settlement.

However, going through the policy document in details will ensure that there aren’t any discrepancies during a claim. After all, the whole point of doing a car insurance renewal is to be able to claim the policy in the time of need. A policy which does not pay at the time of claim is a complete waste.

Here are the top reasons why you must read your insurance document carefully before buying car insurance online.

  1. Coverage Details: Unless you read the policy details, you will not know the exact extent to which the policy offers coverage. Coverage over here refers to the conditions or situations where your policy has your backing and you can claim the same. The coverage lists out all the conditions where you can claim the policy. Being aware of them will certainly help you with a smoother claims process.
  2. Being aware of the Jargon: There are a lot of jargons and legal words in a car insurance policy document. But there is a definitions section at the bottom, which explains what each of them means. Some of the most commonly used jargons include IDV (Insured Declared Value), cancellation, deductible and so on. Being aware of them will help you better understand the policy and keep you away from situations where someone has the upper hand.
  3. Exclusions List: While it is important to be aware of the coverage of your plan, it is equally important to be aware of the exclusions. It is essentially a list that states all the conditions where your policy is not valid. Being aware of the list will avoid any unwanted claim cancellations. And more importantly, some insurers can convert some of these exclusions into policy features on the payment of additional premium.
  4. Geographical Limits: When you buy car insurance online, not many are aware of the geographical limits of the policy. In simple words, your policy is only valid in certain geographical locations. If you want to make any claims beyond these limits, the insurance company will not honor policy. Being aware of the limits will help you avoid claim rejections.
  5. Discrepancies: As soon as you receive a policy document, it is important to check for all the details and ensure that they are correct. Any form of discrepancy must be reported immediately. Failing to do so upfront, might lead to claims rejections at a later date, citing the exact same reasons. If there are any discrepancies, reach out to your insurer to get it rectified at the earliest.

Keeping the above points in mind will help you better understand your policy and handle claims in a much better way. Buying car insurance online has several other benefits embedded to it. One of the most prominent ones being the usage of car insurance calculator.

A car insurance calculator is an online tool which expects some mandatory details from your end. Post this, the tool would fetch quotes from various insurers and present them to you. This process ensures that you are able to buy a policy that is rich in features and doesn’t burn a hole in your pockets at the same time.

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