Importance of Your Car Insurance History. How Does It Affect Your Present Claim?

8192143_mlIf you are of the opinion that buying a car simply means funding for the fuel, then you are sadly wrong. Speaking in the context of the present day, this simply isn’t enough. You need to think about dealing with the financial constraints that might arise out of sudden damage to your car. And what could protect you better in such a situation other than car insurance policy?

Getting Your Car Covered- What Options Do You Have?

Okay, so, that is the very first question that you need to ask yourself. What options do you have as far as car insurance is concerned? Well, insurance companies generally have two types of car insurance policies up their sleeves- the comprehensive ca insurance policy and the policy covering the car from certain potential risks. So, what does comprehensive car insurance coverage mean? Putting it very simply, comprehensive coverage for your car refers to that policy that protects your car from all possible threat- earthquake, fire, theft or burglary, accident to the ignorance of others and the like.

What Role Does Your Prior Insurance Or The Insurance Claim Record Has To Play In The Current Insurance Deal?

Consider a situation where you car has met with an accident. You file for a claim with your insurance company and you are asked to provide for details related to your previous insurance claims and the associated claims record. Why do you think the insurance company asks for these details? What importance do they have in the entire scheme of things?

One of the reasons why insurance companies might ask for previous records related to your car insurance is to verify the reason for your previous claims. For instance, let us consider a situation where your car had suffered a breakdown on some previous occasion due to faulty brakes and the entire repair charges was paid for by the insurance company. Your insurance claim record will help the car insurance company to assess if you had repaired the brakes and whether the reason for the latest breakdown is the same. Your insurance adjuster goes through this entire procedure and finds out if your current claim against your car insurance is at all justified.

How Does the Insurance History and Claim Record Affect Your Car Insurance Premium?

Now the next question that must be buzzing around your head is whether the entire car insurance history and claim record has got to do anything with the premiums that you pay periodically. If one had to answer this question in a monosyllable, then they would only have to say ‘yes’. If your claim record shows that you have a lea record and haven’t made a claim, then the insurance company is likely to grant you a certain discount on the premium of the car insurance. Some companies even go as far as ignoring minor claims not changing the status of clean record. Now, if your car gets involved in an accident and you are found to be at fault, then the premium rates of the car insurance policy goes back to normal rates, until you gain back the status of clean record.

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