Make Your Purchase Easier with a Car Insurance Checklist

Getting a car insurance can be a challenge, whether you are new at buying insurance or not. To make your car insurance journey simpler, we have a checklist that will guide you through the process. But before we dive into the checklist, there are 5 important questions you need to ask yourself beforehand.

5 Questions to Ask Before Buying Car Insurance

What do I expect from my car insurance policy?

People often think that getting car insurance is just something that needs to be done.  It should not just be a matter of selecting a plan and paying for it. When it comes time to file a claim, this approach might backfire. What if you didn’t buy enough insurance? You should consider listing your requirements before buying a car insurance policy to avoid last-minute problems.

What is not covered under my car insurance plan?

Exclusions are the items that are not covered by your automobile insurance policy. It is essential to understand what the policy covers and what it does not.

How much should I pay for car insurance?

The cost of each car insurance policy depends on a number of things.  There are factors such as the type of car insurance policy you have, the number of add-ons you have, the model of the car, its current market value, and so on. So, before you buy car insurance, estimate your premium costs.

Which add-ons do I require?

Assessing your demands to determine which add-ons are most appropriate will benefit in the long run. Here are some examples of add-on coverages:

• Roadside Assistance Coverage
• Zero Depreciation Coverage
• Key Cover Replacement
• Outstation Emergency Coverage
• Consumables Protection
• Engine Protection Engine Coverage
• No Claim Bonus Coverage
• Return to Invoice Cover
• Passengers’ Accident Coverage

Is it a good idea to have a voluntary deductible?

Deductibles are included in the amount of your car insurance claim settlement. While your insurance provider will cover most of the repair costs, you still have to pay the deductibles. There are two kinds of deductibles in car insurance: mandatory and voluntary. For voluntary deductibles, you decide how much you want to pay. For mandatory deductibles, the insurer decides how much you have to pay.

Is this a good thing?

Yes, you can choose a voluntary deductible if you’re sure you won’t need to file a claim.  By doing so, you guarantee the car insurance provider that you will pay for part of the claim. As a result, you will receive a discount on your car insurance payments.

Now let’s look at a few things you should look into before purchasing your auto insurance policy.

Information Required to Get a Car Insurance Quote

The first step in buying car insurance is getting insurance quotes. You can get better policies if you shop around and compare car insurance from different companies.  Additionally, your coverage choices, deductible, and policy cost will be determined using car and personal information, as well as brief driving history.

Here is a list of information you might require while requesting insurance quotes.

• Vehicle Information
• Year, make, model and body style of the vehicle
• Vehicle Information Number (VIN)
• Name of the registered owner
• Purchase date
• Mileage
• Garage Address
• Prior insurance company and date of insurance expiration
• Drivers Information
• Name(s) and date(s) of birth of the driver(s)
• Driver’s License number(s) and state(s) of issue
• Driving History
• History of tickets and accidents
• Information on the suspension of your license
• Car Insurance Discounts

Every car owner wants a discount on their insurance, but they don’t know how to qualify for one. By getting discounts on your car insurance, you could lower your insurance rates and save money. Here are some ways to receive discounts on your car insurance.

Therefore, we have listed some insurance discounts below:

• Multi-policy discount
• Discount for multiple vehicles
• Discounts for defensive driving
• New vehicle discount
• Discounts on anti-theft devices
• Good student discount
• Discounts for vehicle safety
• Good drivers discount
• Pay in full discount
• Discount for early birds
• Usage-based insurance program discount

Documents You Will Receive After Purchase

Once you’ve decided on your car insurance, your insurance company will provide you with a set of documents related to your policy. Here is a list of documents required in order to get car insurance:

Covering Letter

This includes the following:

• Details about document pack
• The next step that needs to be taken
• Important contact information of the company
• Reminders to give the company if any documents, like Proof of No Claims Discount, are still pending.
• Motor Insurance Certificate

This is a certificate of proof that you have at least the minimum insurance required by the Road Traffic Act. Each insured vehicle will have its own certificate.

Insurance Statement

This document shows all of the information you provided the insurance company about yourself and your vehicle while purchasing your policy.

Insurance Schedule

This document contains:

• Insurance information
• Your insurance policy number
• Coverage details
• Who is insured to drive your vehicle
• Any excesses applicable to your insurance
• What sections of the policy apply to you
• The name and address of the insurer of your insurance.

Motor Policy Pointers

This document contains all of the essential details regarding your auto insurance coverage. It also details your duties as a policyholder, the rights of insurer, and any policy-wide exclusions.

Fixed Sum Loan Agreement

The Consumer Credit Act of 1974 regulates the Fixed Sum Loan Agreement, which is a legal contract to provide credit to a client.

The contract includes important financial details such as:

• The credit limits
• Term of the contract
• Annual Percentage Rate (APR)
• Amounts and frequency of installments
• Charges incurred (e.g., if you miss a payment)
• Pre-paid amounts
• Arrangements for Policy Payment

This document explains:

• Amount of payments
• Instruction on how Direct Debit Guarantee works
• Details about account or card from which the amount will be deducted from
• Credit information for pre-contract transactions
• Direct Debit Instruction

When you buy your policy the insurance company usually sets up a DDI over the phone. The company will also give you a printed version if:

They are unable to obtain verbal approval from the account holder.
The company didn’t speak with the account holder at the time of insurance purchase
The account holder’s bank has already cancelled the DDI.
Important Details About Insurance Services

This document outlines essential details about how the company will arrange and handle your insurance policy on your behalf. It functions as a separate contract between you and the company. It outlines the services they will provide, their costs and charges, and how your policy will be renewed.

Credit Information

If you’re paying monthly installments, the company will send you this document. It includes:

• The credit payment’s total cost
• The credit arrangement’s primary components
• The company’s contact details if needed