10 Things You Didn’t Know About Car Insurance

Car Insurance

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.

4. Multiple drivers affect your premium
Car insurance companies set premiums based on risk, and having numerous drivers in a single vehicle raises the probability of an accident and a claim. That is why, when numerous drivers share a single vehicle, car insurance firms charge a higher rate. As a result, only allowing one person to drive the car is preferable.
5. Cover for the accessories fitted in a car
Basic insurance only covers damage to your automobile, not the accessories you have installed. However, you can cover your car’s installed accessories by purchasing a separate add-on that is specifically designed for them. Although such upgrades to your policy raise your premium, they are still less expensive than replacing an accessory after it has been damaged.
6. Zero depreciation cover

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.

7. Cover for the engine
Under your car insurance policy, you can get an engine add-on cover that covers engine-related repairs that are not caused by an accident. It prevents you from spending a lot of money on engine repairs. This cover comes in handy in the event that the engine is damaged due to floods, which might leave a large hole in your wallet.
8. Cover for personal usage and business usage is different
The amount of coverage provided by your car insurance is determined on the vehicle’s use. If you use your automobile for business, commercial vehicle insurance is recommended; otherwise, if you use your car for personal reasons, a comprehensive insurance coverage is recommended.
9. Comprehensive car insurance policy doesn’t cover everything
Purchasing a comprehensive auto insurance policy expands your coverage area, but it does not cover everything. The comprehensive insurance coverage also has some exclusions and limitations, which are explicitly stated in the policy terms. As a result, it is critical to read the policy details before purchasing.
10. Key replacement
If you lose your ignition key, don’t fret; most auto insurance companies will pay the cost of a replacement key.
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.

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