Don't fall for discounted offers. Agents manipulate policy features to make the price look attractive. Always check under the hood

                                      

Our instinct to get the maximum bang from the buck is particularly visible when it comes to buying car insurance because if one does not make a claim, one does not get any value for the premium paid. By negotiating a policy with a ower premium, one can cut losses. Fortunately , discounts on motor insurance are easy to come by. According to industry officials, in addition to the no claim bonus (NCB ), one can get 5060% discount on the basic vehicle premium.Naturally , we negotiate hard.

However, motor insurance buyers need to be cautious, particularly when the insurer agrees o the discount you are seeking. Mis-selling of the insurance product and miscommunication about it are most likely to happen when you are given huge discounts.

HAS YOUR CAR'S VALUE BEEN LOWERED?

Mis-selling happens when you buy a policy via an insurance agent. "If you negotiate hard with an agent, he may lower the value of your car, hence lower your insured declared value (IDV). Say your car is valued at `7 lakh and you are asked to pay a premium of `22,000. If you push for a bargain, the agent might value your car at `6.50 lakh, thus bringing your premium down by some `2,000.Unfortunately, you will discover this only when you make a claim, and get a low payout.

HAS VOLUNTARY DEDUCTIBLE BEEN INCREASED

When monetary loss is borne by the insured, it is called deductible. It can be compulsory or voluntary . For a policy where a car's IDV is around `6.50 lakh and an insurer offers a lower premium of `18,930, you are also offered a voluntary deductible component of around `5,000. If you increase the voluntary deductible component to, say , `7,500, the premium gets lowered to `18,480. If you increase it to `15,000 your premium could fall to `18,000.

Often agents lower the premium quote by increasing the voluntary deductible. When a loss occurs, you have to cough up a good amount-voluntary and compulsory deductible.

INCORRECT CLAIM HISTORY?

If you want to shift to another in surer, and you do not disclose you had made a claim with your previous insurer, you may get a discounted premium from your new insurer.The problem arises when you make a claim with the new in surer. If non-disclosure or misrepresentation on the part of a policyholder is found out at the time of a claim, the insurance company has the right to reject the claim.

HAVE ADD-ON COVERS BEEN REMOVED?

A typical third-party motor policy has inbuilt covers for drivers and co-passengers.These are detachable, and so often people choose not to take these covers in order to lower the premium payout. Add-on cover can be important, don't get swayed by the lower premium.

STANDARD COVER PITCHED AS SPECIAL OFFER?

Often agents sell a policy by bloating its price and then offering you a 20-30% discount on the premium and project it as a special deal for you.So, if you can do a little research of your own before you buy the policy , it will be helpful.