Car Insurance Policy: 8 Important Things You Must Check!

(Photo Credit: freepik)

When it comes to car insurance, you’ve probably heard the term "policy" quite often, but have you ever actually read through it?

Your car insurance policy is a crucial document! If you don’t want to miss out on benefits or run into problems when filing a claim, here are the key things you should check.

What is a Car Insurance Policy?

A car insurance policy is a contract between you (the policyholder) and the insurance company that outlines coverage details, terms, exclusions, and the insured amount.

Nowadays, policies are available in both physical and electronic formats (e-Policy), and both are equally valid for claims!

8 Key Things to Check in Your Car Insurance Policy

1. Policy Number

• Why check it?
  • Your policy number is like your car insurance’s ID—it’s needed when filing a claim or contacting the insurer.
  • If you need to report a claim to the insurance company or an auto repair shop, this number is essential.
• How to check
  • Find the policy number in your documents (both paper and e-Policy).
  • If you can’t find it, check the insurer’s mobile app or contact customer service.

2. Policyholder’s Personal Information

• Why check it?
  • Incorrect personal details may cause issues when filing a claim or even void your policy.
  • If your policy is driver-specific, an incorrect name could lead to a denied claim.
• How to check
  • Ensure your name, address, and occupation are correct.
  • If you’ve changed your address or any details, notify the insurance company immediately.

3. Vehicle Information

• Why check it?
  • Any mismatch in your vehicle details can cause issues when making a claim.
  • For example, if your license plate number is incorrect, the system may not recognize your policy.
• How to check
  • Verify details such as make, model, registration year, chassis number, and license plate number.
  • If anything is incorrect, contact the insurer to update it immediately.

4. Coverage Details & Limits

• Why check it?
  • Knowing exactly what your policy covers and the claim limits will help you avoid surprises during an accident.
• How to check
  • Look at what’s included in your coverage:
    • Vehicle coverage (for collisions, theft, fire, etc.).
    • Third-party coverage (medical expenses and property damage for others).
    • Personal accident coverage (for the driver and passengers).
  • Check the maximum claim amount for each coverage type.

(Photo Credit: freepik)

5. Premium Costs & Fees

• Why check it?
  • Ensure you're paying the correct premium and receiving any applicable discounts.
• How to check
  • Compare the premium amount with what you agreed to.
  • Look for discounts, such as: Named driver discounts, Group discounts, No-claim discounts.
  • Verify the total amount payable, including VAT and stamp duty.

6. Policy Terms & Exclusions

• Why check it?

  • Exclusions can affect your claims. For instance, if your policy doesn’t cover racing or commercial use, you won’t be compensated if an accident occurs while using the car for these purposes.

• How to check
  • Read the exclusions carefully, such as: No coverage for accidents outside the country, No coverage if the driver is intoxicated beyond legal limits, No coverage if the car is used for an unapproved purpose (e.g., using a personal car for hire services).

7. Policy Cancellation & Refund Policy

• Why check it?

  • If you decide to cancel your policy before it expires, you should know how much of your premium will be refunded.

• How to check
  • Review the cancellation terms, such as: How much of your premium will be refunded if you cancel? or If the insurance company cancels, what kind of refund will you receive?

8. Additional Coverage & Endorsements

• Why check it?
  • Some policies offer extra coverage through endorsements, such as bail bond coverage for drivers.
• How to check
  • Check for any additional benefits, such as: Extra medical coverage for the driver and passengers, Daily compensation while the car is under repair, Coverage for additional car accessories.

Your car insurance policy is more than just a piece of paper—it’s an important contract that you should fully understand before purchasing insurance. Carefully checking all these details will help prevent future issues, especially when filing a claim or renewing your policy.

If you’ve reviewed your policy and still have questions, don’t hesitate to contact your insurance provider!

Looking for the best car insurance deal? Let Motorist help you find the most suitable and cost-effective policy for your car!

Read More:  How Many Days After an Accident Can You File an Insurance Claim?

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