In India, automobile insurance is required, thus most people don’t pay much attention to the contents of their policy. They refrain from reading the policy documentation and instead simply renew the coverage on the due date. Such indifference to your insurance coverage prevents you from receiving benefits and leaves many things unaddressed.
A car insurance coverage comes with a slew of benefits and flexibility that can make or break your policy. However, in order to take advantage of such perks, you must be completely aware of them; otherwise, you will be left with a strategy that will be useless when you need it the most.
So, in this article, we’ve listed ten things that most people don’t know about vehicle insurance.
1. Transfer of No claim bonus
The majority of people are unaware of the transfer of NCB while switching insurers. If you have any collected NCB with your current insurer, you can transfer that accrued NCB to the new insurer when you switch insurers. The same procedure can be done while switching cars. Your old automobile’s accumulated NCB can easily be transferred to your new car.
2. Renewal of expired policy
You don’t have to worry if you forget to renew your coverage because you get a 90-day grace period after it expires. You can easily renew your expired auto insurance coverage throughout these 90 days without losing any benefits. After renewal, you can also carry forward your accrued NCB.
3. Cover for towing charge
Driving on highways and in isolated regions comes with the risk of being unable to locate a garage or mechanic in the event of an accident. Even if you find one, the mechanic will charge you a large fee for towing your car if you are unable to drive it to the shop. Charges like these can burn a hole in your wallet. However, due to a car insurance coverage that covers towing costs up to a certain level. So learn the terms and conditions of your policy’s towing coverage and take advantage of it.
The depreciation rate of the car is always deducted from the sum assured obtained following a claim in car insurance. This depreciation rate is computed by dividing the rate at which the value of your automotive parts depreciates (as your car becomes older) by the market cost of a new part. However, you can avoid such a deduction from your claim by purchasing a zero depreciation policy, which allows the policyholder to get the whole sum assured without any depreciation deductions.
So check over the policy terms of your insurance coverage so you can get the most out of it. A car insurance policy has a lot to offer; whether you want to take advantage of them by knowing your policy or miss out due to ignorance is entirely up to you.