Car insurance is undoubtedly the fastest growing industry in Pakistan, with each passing day the number of car insurance service providers is increasing in Pakistan. With such an increase in the players in the market, the things need to be handled with additional care as there are many scams noted in this regard.
Every car insurance service provider is coming up with different plans and offers different kinds of promotions for the clients. So many choices and offers make it difficult for the customers to assess and find which of the following suits the best to their needs and budget.
Despite such extreme demand for car insurance in Pakistan, there is still lack of sufficient amount of information sharing about the matter. One of the main reasons is that the potential car insurance customers do not have access to reliable sources of information.
Keeping in mind the need to educate the car insurance customers, we have compiled some data that is really helpful for the users to do safe buying. To assist the customers in a better way, below are some of the basic questions that are necessary for you to keep in mind if you are really looking for to go for car insurance and planning to buy a policy.
1- Why car insurance is needed in Pakistan?
Car insurance is the best way to own a car without putting a strain on your pocket takes no burden in case of damage, accident or theft.
With the latest advancements in the field, it is much easier for the car owners to get their vehicle insured. There are a lot of insurance service providers in the market who offer competitive packages for the customers to earn maximum benefits.
Another aspect of the matter is that Pakistan is a developing country and there are a number of projects of infrastructure that are in the pipeline in big cities like Peshawar and Lahore. Such situations are creating a challenging situation on the roads and for the drivers. All of this is resulting in increased traffic accidents.
No matter how careful you are but there can be the time that you earn damage to your vehicle due to the carelessness of the driver just behind you. In such conditions, car insurance will help you deal with the situations with an ultimate peace of mind.
2- Is it Necessary to Have Car Insurance in Pakistan?
Yes, it is a must to have. However, according to the traffic laws of Pakistan, the driver must own the third party insurance of liability. If not so, he will have to pay a fine and might be charged with punishment for violation of traffic rules. The third-party liability insurance service providers offer services for property damage, car damage, death by vehicle, and physical injury etc.
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3- What Emblements Impact the Car Insurance Premium in Pakistan?
It is important for you to know what major elements are there that might have an impact on the car insurance premium in Pakistan. The car insurance service providers in Pakistan, consider a number of factors before finalizing terms for the premium of your car insurance. Below are some of the key factors that can have an impact on the car insurance in Pakistan;
- The value of your vehicle
- The insured estimate value
- Model and make of vehicle
- Age of the car
- In which area it is used and where it is parked when not on the ride
- Do the car have a tracker or not
4- Is Car Insurance Policy Only for Registered Owner?
Yes, in Pakistan the insurance policy is issued in the name of the registered owner of the car. However, you can purchase the insurance policy if you own an unregistered vehicle but you have to provide the documentation of registration in time of 15 days. In another case, the policy will be terminated.
5- What if the husband and Wife Both are driving the same car?
If both husband and wife are driving the same car, the insurance policy will go for both of them. The insurance policy in Pakistan is provided on the basis of the vehicle and not the person. However, these service providers will do ask for the details of the car owner and the person who will be driving the car. It is necessary for the registration of the vehicle insurance.
6- Do Service Provider Ask for Driving History?
Before offering the insurance policy the car insurance services providers will do ask for the policy owner various questions. The service provider might ask you your history of driving, if you have had any accidents in the past, or if you are a rash driver. It helps them to calculate the risk level. Also before giving you the insurance policy, they will check the vehicle in detail for if there is any damage to it or not. So the driving history of the people who will be driving the car is a must for the services providers before they will issue you an insurance policy.
7- Do We Separate Insurance for Every Car?
Every car has its own insurance. One policy will be applicable only on one car. If you have more than one car, you will need to buy a separate insurance policy for them. You may find some insurance provider who will transfer a single insurance policy from one car to another but you have to pay the premium separately.
8- An Insurance Policy Covers Entire Pakistan or One Province?
Most of the insurance provider covers entire Pakistan. However, there are some insurance providers who have excluded some sensitive parts of Pakistan including Balochistan. This is done due to the security issues. If the client looks for some insurance for sensitive areas, he/she must ask the service provider and will have to pay some additional amount in this regard.
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9- Can We Get Short-term Insurance Cover?
If you are asking about a genuine car insurance service provider then surely there is not short term car insurance cover in Pakistan. However, the owner of the insurance can cancel the policy at any moment. The policy owner can also claim a refund if he or she has not claimed an accident during this time period and if there are a minimum of 120 days left till the expiration of the policy for car insurance.
10- Car Insurance Requirements while Renting a Car:
When you are renting a car, you do not need to buy the insurance car in your name. the cars that are used by the car rental businesses are insured under the specified category and is done in the name of the actual owner of the car or the company who rent the car to the third party for temporary use.
These are the most general norms of the car insurance industry in Pakistan. There are chances that the insurance provider may have some specified terms and conditions of their own but the above said are to be applicable in all cases.
Otherwise, in any case, we would recommend you to study the policies or terms and conditions in detail before signing an agreement of the car insurance policy in Pakistan, to keep yourself safe and out of any hassle or hidden charges.