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How Do Car Insurance Providers Evaluate Your Profile?
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A four-wheeler is a necessity if you regularly commute with your family. Most households have at least one automobile to make travel convenient. Now, owning a vehicle is not limited to possession. When you drive it, you also become responsible for road safety. You must follow the legal guidelines to keep yourself and others safe. Hence, accompanying your car with Motor Insurance is essential.
The law mandates this to compensate for third-party damages. For this, a Liability Only Car Policy is the minimum requirement. You may extend it to a Comprehensive Plan if you need additional protection. Based on this coverage, you get extra benefits and riders to suit your needs. As insurers take responsibility for financially compensating your losses, they verify your profile thoroughly. They scrutinise the following factors:
Personal details
The Insurance Regulatory and Development Authority of India or IRDAI regulates KYC. It requires all the registered Car Insurance companies to fulfil the formalities for record-keeping. Owing to this, policy providers ask for your personal information. They verify your identity with details like your name, address, date of birth, etc. Doing so also helps prevent data fraud. They use the same data to ease the Car Insurance renewal process.
Credit records
Having sufficient income is not the only indication of a healthy financial status. The way you utilise the funds also has a bearing on its longevity. Hence, insurers understand your financial standing by assessing your credit behaviour. This information tells them about your ability to pay the premium and handle minor claims. The voluntary and compulsory deductibles get affected. This impacts the premium and sum insured on Four Wheeler Insurance.
Driving history
The primary intention behind getting your automobile insured is to secure it against the financial implications of mishaps. However, it is only a precautionary measure. It does not give you the free will to rash drive. Contrarily, a clean driving record is essential to get a favourable premium. When buying Car Insurance online, you benefit from competitive quotes only when you have a good driving history.
Criminal conduct
Policy providers verify your claim when you file a claim for accidents, theft, mishaps, or vandalism. They inspect the incident to authenticate it. If they find criminal history, your credibility gets violated. This is because insurers are an easy target for scammers. They need to protect themselves from fraud by evaluating the claims carefully. This also affects the Car Insurance Policy premium based on the risk.
Additionally, your vehicle's condition also determines its susceptibility to damages. Hence, insurers send an authorised vehicle inspector to investigate its condition. The officer assesses your vehicle's condition, model, documents, and activity record.
