10 Things You didn’t know about Car Insurance

Car insurance is mandatory in India. And that’s why most people don’t pay much attention to the details of their car insurance. They keep themselves away from going through the policy documents and just renew the policy as per the due date. Such inactiveness toward the insurance policy keeps you away from availing the benefits and leaves many things uncovered. A vehicle insurance policy comes with numerous benefits and flexibility which can do wonders to your car insurance policy. But to take advantage of such benefits of your car insurance, you must be fully aware of them, otherwise, you will be left with a plan which will prove to be useless when you will require it the most. things people didn’t know about the car insurance policy in India.

1. Transfer of No Claim Bonus (NCB)

Most people are not aware of the transfer of NCB while changing the insurer. If you have any accumulated NCB with your current insurer, then while changing to a new insurer, you can transfer that accumulated NCB to the new insurer. The same thing can be done while changing the car also. Your accumulated NCB of your old car can easily be transferred to your new car.

2. Renewal of Expired Policy

You don’t need to worry if you miss renewing your policy on time. As you get a window of 90 days from the date of expiry of your policy. In these 90 days, you can easily renew your expired vehicle insurance policy without losing any benefit. Your accumulated NCB can also be carried forward after renewal.

3. Cover for Towing Charge

Driving on highways and remote areas involves the hassle of not being able to find a garage or mechanic in case of any mishap. And even if you find one, the mechanic charges a high amount for towing your vehicle if you couldn’t drive it to the garage. Such charges can burn a deep hole in your pocket. But thanks to the car insurance policy which covers towing charges up to a limit. To understand the terms and conditions of cover for towing charges in your policy and get benefited from it.

4. Multiple Drivers Affect Your Premium

Motor insurance companies decide the premium amount according to the risk and multiple drivers for a single car increases the risk of accident and claim. That’s why car insurance companies charge high premiums if multiple drivers are driving a single car. So it is better to allow only one person to drive the car.

5. Cover for the Accessories Fitted in Car

Basic car insurance covers the damage for your car only, not for the accessories fitted in the car. But you get the option to cover your accessories fitted in the car by opting for a separate ad which is specially designed for accessories. Such additions to your policy increase the premium price, but it is still more cost-effective than installing a new accessory after damage.

6. Zero Depreciation Cover

The sum assured received upon the claim in vehicle insurance is always deducted by the depreciation rate of the car. This depreciation rate is calculated by subtracting the rate at which the value of your car parts decreases (with the advancement in your car’s age) with the market cost of the new part. But you can avoid such deduction from your claim amount by opting for a zero depreciation cover which allows the policyholder to get the actual sum assured without any deduction due to depreciation.

7. Cover for the Engine

You can opt for an add-on cover for your engine under your vehicle insurance policy which takes care of the engine-related repairs that are not caused due to accidents. It keeps you away from expending a huge amount of money on engine repair. This cover is very much useful in case of damage to the engine due to flooding which can burn a deep hole in your pocket.

8. Cover for Personal usage and Business usage is Different

The cover for your car insurance depends upon the use of the car. If you are using your car for commercial purposes, then it is advisable to go for commercial vehicle insurance otherwise go for a comprehensive car insurance policy if you are using your car for personal purposes.

9. Comprehensive Car Insurance Policy doesn’t Cover Everything

Buying a comprehensive car insurance policy widens. Your area of coverage but it doesn’t mean that it covers everything. There are some exclusions and limitations of the comprehensive car insurance policy also which are clearly mentioned in the policy details. So it is very much necessary to go through the policy details before buying.

10. Key Replacement

If you have lost your ignition key, then you don’t need to worry as most car insurance companies reimburse the cost of a new key.

So go through the policy details of your vehicle insurance policy so that you can avail maximum benefit from it. A car insurance policy has a lot to offer, it all depends on you, whether you want to access them by understanding your policy or miss them due to unawareness.

Compare all arrangements with comparepolicy.com and pick the most appropriate Life protection for yourself.

Some Other Facts about Car Insurance

Whether the “no-fault” insurance option is correct.

Whenever we buy a car and having an insurance option like “no-fault insurance” is quite a good option, but many people mistakenly think that when no-fault car insurance option is available to them, no one will be considered to be at fault or at fault in the event of an accident. Having this type of insurance does not mean that you are safe if you cause an accident while parked or if the car gets scratched in any way while parked. If it’s all your fault and you cause the accident, you can be responsible for it and it’s quite likely.

Your Car’s age will create a huge difference in terms of the insurance.

Driving a luxury car can cost you a lot, because when you buy such a luxury car and get it insured, then you have to spend more money for insurance as compared to other vehicles. Usually, in the event of an accident, you will pay a higher amount to get your car replaced or repaired. Cars that cost less to repair or replace or older cars cost less to insure because they won’t cost your insurance company much in the event of an accident.

Different Insurance companies’ plans have different rates and coverage too.

Well, it’s obvious that every company has their coverage and they keep the things according to profit and possibilities. In this situation, we always try to find some of the best plans for our car with a minimal premium. In India, if you own a car then you should ensure your car or you have to pay a penalty for not insuring a car and new traffic rules are too expensive in terms of paying penalty. And, no one wants to pay a fine.

How to calculate Car Insurance Premium 

This is like a question for all of us because many of us do not even know how car insurance premium is calculated. While all of us should have this common information, we need some information to calculate car insurance premiums:

• Car Model Details 
• Year of Manufacturing
• Make and Model of the car 

With all these documents, we can calculate the premium of the car and with this, we will know about the liability of the car.