4 Must-Knows of Car Insurance Policy Renewals

Portrait of happy mother and son in car
Portrait of happy mother and son in car

There are certain must knows of Car Insurance Policy Renewals. Mind you, I mentioned Renewals because the first policy is usually purchased from the car dealer and hardly any thought goes into the same. But if you are buying your first car, you need to look around for the best policies.

It is only from the first renewal that it makes sense to analyse the need and then purchase your policy. Thus it makes sense to choose the best policy that suits your needs keeping the following points in mind.

Compulsory and Voluntary Deductibles
The deductible is the basic minimum amount that needs to be paid for each and every claim. Including deductibles usually reduces premium so that fake or small claims are avoided or at least reduced. The deductible is the amount of an insurance claim you agree to pay out of your pocket before the insurance company pays the remainder of the claim. The deductible represents the amount of financial risk you are willing to assume. If you are willing to assume more financial risk in the form of a higher deductible, your premium cost is lower. In simple words, let’s assume your claim is P10,000; the insurance company would pay an amount of P9,000. The P1000 is the risk you will be taking personally.

Insured Declared Value (IDV) or Sum Insured
Insured Declared Value is the basic amount which is fixed by the insurer for that year’s current market value of the vehicle which is provided in case the vehicle is stolen or total loss of vehicle.

Brokerage commissions
Many policies will include brokerage commissions amounting to a certain percentage of the policy value. Direct insurance companies like Alpha Direct do not levy brokerage commissions as they deal directly with customers.

Claim Procedure
The most important aspect of a “good” motor insurance policy would be easy and efficient claim procedure and hence knowing the same and being aware is a very important factor while shopping for your car insurance renewal policy. Alpha Direct has a superior claims processing system to ensure the industry beating turnaround times on claims.

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