12 Smart Tips For First Time Car Insurance Buyers

We all are aware about numerous companies offering Car Insurance policies at the time of purchase when you plan to buy a car. However, there are some hidden facts you should know before you finalize from which company you plan to buy the insurance.

Remember, once you buy it, you would already have given the money, but below mentioned tips can help you decide and negotiate with your dealer or insurer to provide you best car insurance plan.

car insurance buyer

What is the period for which Car Insurance policy is issued?

The timeframe of a car insurance policy is dependent on the nature of policy you purchase. Usually, car insurance plans are issued for one year under third party as well as comprehensive policies.

However, if the car is bought on or after 1st September 2018, a third party policy would be issued for a compulsory period of 3 years. For one’s own damage coverage on such cars, you have an option.

You can either sign in for a year own damage coverage with three years third party cover or three years comprehensive policy. In the latter, the third party and own damage cover would be issued for a period of 3 years.

Can I pay Car Insurance premium in instalments?

No, the car insurance premium is not permissible in installments. You are required to pay the premium upfront at the time of buying the policy.

Can I get my money/unused premium refunded?

On cancellation of your car insurance plan, a certain portion of the premium shall be refunded factoring in the period after which the cancellation of the policy took place.

The later you cancel the plan in the policy period the lower would be the refund of premium. Insurance companies have a cancellation refund grid which shows the amount of premium refunded depending on the period after which the policy is cancelled.

You should, therefore, verify the grid to ascertain the refund amount to be claimed. However, you should keep in mind that policy cancellation would be allowed on adequate proof of an alternate third party liability cover.

A car insurance policy is mandatory and only when you have an alternative third party cover you are eligible in getting an existing policy cancelled. To avail a premium refund, connect with Policystar.

Policystar’s experts will help you with the refund of the claim under your car insurance policy. Alternatively, you may contact the insurance company and avail the refund.

Is it possible to opt for an add-on without a policy?

No, opting for an add-on cover in absence of a basic comprehensive car insurance policy. is not possible. The add-on may be selected with the car insurance plan and further choose to enhance the coverage with the add-on.

Will my gender affect my premium rates?

Yes, gender affects car insurance premiums. The fact is statistically it has been found that female drivers are more careful and suffer fewer accidents. Hence, the premiums charged from females are lower than premiums for males.

Does the main driver have to be the policy holder?

Not necessary. The policyholder is actually the legal owner of the car. The main driver of the car does not affect the ownership of the car insurance policy.

The policy is issued in the name of the legal owner and the owner might or might not be the main driver. That is why you can keep a driver to support you while travelling by car but the insurance should definitely be on the name of the car own.

Can I change details in a policy?

Any change in policy is allowed only if it does not affect the coverage of the plan and its premium. This means, you can change your address, contact number, etc. by making an endorsement in the existing policy.

You can raise a request with the insurance company to change your policy details. Insurance company’s team of experts would then help you with the process of recording the changes to be done to the policy.

You can, alternatively, inform the insurance broker also for the change and the company would make the change by putting in an endorsement on the policy. These changes can be made anytime during the coverage tenure.

However, changes relevant to the coverage, like change in the type of plan, change in add-ons, are allowed only at the time of renewal of the policy. We suggest you to check the details of your policy wording very carefully at the time of policy purchase or renewal so that there are no updations or changes required at later stage.

Is there any limit to the number of add-ons I can opt for with my policy?

No, no limit has been specified in respect to the number of add-ons to opt with your plan. You have the freedom to choose as many add-ons as you want based your coverage needs.

However, keep in mind that every add-on comes with an additional premium. So, consider your affordability while picking the add-on.

How can I apply for liability only insurance online?

You can go to the insurance company’s website to purchase a liability only policy for your car online. Choose the policy that you want to buy, provide the information of your car, pay the premiums online and the policy would be issued in an instant.

Alternatively, you can also opt for a third party policy online via policystar. Policystar features some of the best third party policies available in the market.

Visit www.policystar.com, choose a car insurance, choose the type of policy that you intend to buy, furnish the car details, fill an online proposal form and pay the premiums online. The policy would be issued instantly.

What is the procedure to transfer my insurance?

Whenever you plan to sell your car to some other person or business entity, transfer of your insurance policy becomes necessary. You can research on policystar for process of transferring your insurance policy.

Even during the transfer, when you contact with the Insurance companies’ experts, they will guide you with the process of transfer so that it can be done easily and quickly.

Alternatively, you can inform the broker or web aggregator from where you would have purchased the car insurance policy about the transfer so that the policy can be transferred to the new buyer. This process of change in the motor insurance policy document is known as Endorsement.

To transfer the policy you would have to submit the updated registration certificate of the car which shows the name of the buyer as the owner, existing policy document, a new proposal form containing the details of the buyer, identity proof of the buyer, sale agreement showing that the car has been sold and a fee for transferring the policy.

Thereafter the insurance company would transfer the car insurance policy from the name of the seller to the name of the buyer. This process is fairly simpler these days, we suggest you to drop a mail to Insurance company’s email address for written request.

What is the procedure for recording any changes in the policy?

If there are any kind of changes in the policy, you can connect with Policystar for recording the changes. Policystar offers complete support services for every policy-related changes. Connect at 1800 266 2626 or drop a mail at [email protected].

The Policystar’s experts would guide you at every step with the process of recording a change in your car insurance plan. Alternatively, you can also contact the insurance company about the same and record the changes in your insurance policy.

These changes are recorded and implemented through an endorsement. You can inform the insurance company of the said changes via writing, via their helpline desk or simply via a mail. The company would then immediately update your policies.

What is an endorsement?

An endorsement refers to any changes made to the insurance policy. Whenever you request for any changes in the existing insurance policy the insurance company would incorporate those changes through an endorsement in the policy document.

Thus, if an endorsement has been made in the policy, it implies that some details have been changed and the specifics of such changes would be specified in the endorsement.