Car insurance has become an essential requirement considering the increasing number of accidents. Any third party who suffers damage due to an accident caused by your vehicle needs to be reimbursed and often the insurance policy comes to your rescue. A car insurance policy will help you reduce the financial burden in case of damage to your car. Moreover, it will ensure that repairs are undertaken at the right place and your car is ready for the road.
Only a genuine car insurance plan will suffice for these needs. So, how do you check the authenticity of your car insurance policy?
Here are ten tips for assisting you in this regard.
- Do not buy car insurance through fake or unaccredited agents: Although buying through agents may seem easier, fake or unaccredited agents can sell car insurance policies. There is also the possibility that the broker might misrepresent the overall car insurance plan features and sell it to you for increasing the number of policies sold under their name to get recognized by the insurance company for additional incentives. In that case, you might have a basic insurance policy with no special benefits. Be wary of anyone who accepts cash payment for the premium.
- Background check of the insurer: Before choosing the insurer, you must research and make a background check to ensure authenticity primarily. For example, you can check if it is registered under the IRDA (Insurance Regulatory and Development Authority) and their claim settlement ratio.
- Verify the identity if you choose an agent: Suppose you are a busy professional with time commitments at the workplace and having enough responsibilities at home. In that case, you will prefer an agent to help you with purchasing the right car insurance policy. In such a scenario, you have to verify the identity of the broker. You can ask for the identity card provided by the insurance company. You can cross-check it with the company as well.
- Check the policy document online: Brokers can sell fake insurance plans by disclosing only some of the features of the car insurance policy. They might elaborate on the attractive features and sell a low priced car insurance plan that may not provide sufficient coverage and benefits. Most of the insurers have a genuine website for availing of online car insurance facilities. TATA AIG car insurance has a brochure and policy document for all the products to detail the features for the customers in a user-friendly platform.
- Compare different car insurance policies: If you are purchasing car insurance for the first time, you may not be aware of the basic features that real car insurance should provide. So, compare the policies of different insurers based on the insured declared value, deductibles, premium rates etc.
- Read the policy reviews as mentioned by the policyholders: One of the best ways to check the authenticity of the car insurance policy is to read through the user reviews. There might be a good number of people who might have availed of car insurance policies and had a bitter experience and shared it online or on social media tagging the insurer. Finding such reviews online can help you avoid purchasing such policies.
- Beware of cash payment frauds: An agent selling a fake car insurance policy can compel you to make cash payments. However, most insurance companies have resorted to digital payments for secure transactions. You can also maintain the payment history for any discrepancies in the future.
- Ensure to get the payment receipts: Every time you make a premium payment towards the car insurance policy or during the car-renewal insurance process, ensure to get an acknowledgement or the payment receipt and secure it for any further correspondence with the insurer. If the car insurance is not original, they may not provide valid receipts.
- Keep a record of the documents submitted: It is also possible that the entire process of purchasing a car insurance policy goes on smoothly, even in the case of fake car insurance. Later, at a certain instance, you may realize that it is not valid insurance. To report such issues and receive compensation later, you must keep a record of all the documents provided to the insurer as a precaution. Also, ensure to get the car insurance policy in original for all future purposes.
- Know the garage networks: Car insurance is necessary to manage the financial requirements associated with car repairs. You, as a customer, must know the garage networks that are available for this purpose. The insurer might have only a few low profile garages as a part of their plan and may not share such information deliberately during the policy’s inception.
Buying insurance for your car is a moral obligation rather than a compulsion. However, you will certainly realize the significance of insurance when you have met with an unexpected accident and need financial assistance to get your car repaired. In such a case, if you find that the car insurance policy that you hold is fake and cannot be claimed, you will be put to much financial hardship.
Hence, it is always important to check the authenticity of the car insurance policy from inception and during the policy tenure as well. The tips discussed above will be beneficial and can be considered when you shop for a car insurance policy. Be aware of the technologies and fraudulent practices to save money and protect your car wisely