How to properly understand and explain the terms of a VTC insurance contract?

How to properly understand and explain the terms of a VTC insurance contract?

Understanding and clearly explaining a VTC insurance contract is essential to help customers make informed choices and avoid misunderstandings.

VTC insurance contracts can seem complex, both for brokers and customers. Understanding and explaining the terms clearly is essential to reassure customers and allow them to make an informed choice. Here's how to break down and effectively explain a VTC insurance contract.

1. Deciphering Technical Terms

Insurance contracts contain many technical terms that are important to understand in order to explain them clearly to customers.

Key terms to clarify:

  • Civil liability : Indicates coverage for damage caused to third parties.
  • Deductible : Amount remaining to be paid by the insured in the event of a claim.

Advice for brokers:

Use concrete examples to illustrate terms and facilitate understanding.

2. Highlight Included and Optional Guarantees

It is essential to clearly distinguish between basic and optional warranties to enable customers to understand what they are buying.

Examples of guarantees to be explained:

  • All accident damage : Covers repairs even if the driver is responsible.
  • Breakdown assistance : Support in the event of a breakdown or accident.

Trick :

Present optional warranties based on the customer’s specific needs, helping them identify those that provide real added value.

3. Explain the Exclusion Clauses

Warranty exclusions are often overlooked but crucial points to understand. These clauses specify situations where coverage does not apply.

Common examples:

  • Damage caused by driver negligence.
  • Use of the vehicle outside the conditions specified in the contract.

Recommendation :

Take the time to read and explain each clause to avoid any unpleasant surprises in the event of a claim.

4. Clarify Franchise Details

The deductible is an important point of discussion in insurance contracts. It must be explained in such a way that the customer knows exactly what he must pay in the event of a claim.

Points to clarify:

  • Amount of the deductible : Indicate the different types of deductibles depending on the claims.
  • Impact on Premium : Explain how choosing a higher deductible can reduce the cost of the premium.

5. Explain the Claims Reporting Procedures

The steps to follow in the event of a claim must be clearly explained so that the customer knows how to react quickly and effectively.

Procedures to be detailed:

  • Deadline for reporting a claim.
  • Documents to provide for rapid support.

Practical advice :

Provide a simple guide or checklist that the customer can keep handy.

Conclusion

Understanding and explaining the terms of a VTC insurance contract is essential to establish a relationship of trust with your customers and help them make informed choices. A good explanation helps reduce misunderstandings and increase customer satisfaction.

At KT Courtage , we are here to support brokers in understanding and clearly transmitting contracts to their clients.

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