When you pick up the phone and start shopping around for a car insurance quote, how do you know if you’re not going to be required to have your car fully inspected? Frankly, it is rare that an insurance company asks for an inspection. However, if you are requesting full coverage for an old car and you tell them the car is in prime condition, the insurance company may take pause, and in order to verify your veracity will require a car inspection.
Using the VIN number the agent would get all the information required about the vehicle, and may even like to arrange an inspection of that particular vehicle so that your actual rates is reduced to a much lower price. Car accessories such a custom made rims, wheels or expensive stereos which you would like to claim along with the vehicle, needs to be inspected before the insurance company provides you with the coverage. This is because there is a possibility of people having an ordinary cassette player, giving false information about it and claiming it to be an expensive one in order to get it covered, which might actually reduce the asset of the Insurance company.
Since the insurance company is interested in protecting its interests, they may require you to have your car inspected just to get an overall assessment of the total value of your car. If your car is in excellent condition, they then can match it up with the appropriate blue book value and write you the appropriate policy. However, if you have a leaking radiator, a slipping transmission, or leather seats that have rips and tears in them, the insurance company will most likely downgrade the value of your car and find the appropriate blue book value.
Remember, the insurance company needs to find the correct blue book value based on the current condition of your car just in case you get into a major accident and total your car. They are not in the business to lose money or in the habit of paying out on policies that were written based on false information. By having an inspection, they will know the true value of your car.
Sometimes there is damage to a vehicle that is not noticed by the current owner and has never been reported. Sometimes previous owners do not report minor accidents. They make quick patches and sell the car to unsuspecting buyers. Unfortunately, there are other types of fraud which insurance companies must look for. Filing false claims based on questionable values costs insurance companies millions of dollars each year.
This is why inspections can happen at any time. The insurance company needs to know if you are honest. So it is best to be truthful when looking for a quote because the day after you get your policy, the insurance company might be at your place taking pictures of your car.
About the Author:
Graham McKenzie is the content syndication coordinator for Carinsurancesa.co.za. South Arica?s leading car and vechile portal, which helps people save on their car and vechile.
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