1. Home
2. Blogs

Five Things About Car Insurance You May Not Have Known

• 
• 
• 
• 0
• 0

Despite the digitization of car insurance, understanding the basics of car insurance policy can be challenging, let alone cracking the fine print of the contract. Of course, one could opt for the traditional route of involving intermediaries, but that could add to the complexity of the process. Thus, for the benefit of your understanding, we have outlined some obscure yet important car insurance facts, so you are ‘in-the-know’ when you are ‘on-the-go’!

So, here are five facts about car insurance that you need to keep in mind before choosing a policy.

Fact #1: You can get cars repaired without paying cash at network garages

Imagine you have met with an accident and your car has suffered serious damage. You don’t need to worry about the out-of-pocket expenses for repairs. You just need to call your insurance company and tell them about the situation. They will direct you to a network garage where you can repair your car without making any advance payment. Once the repair is done, you have to pay only a percentage of your bill, known as the deductible. Depending on your policy, this is a percentage of your bill and some fixed charges. The rest is resolved between your insurance company and the repair garage.

Fact #2: You can bring forward NCB when you switch insurers

The No Claims Bonus or NCB is like a reward for those who do not make any claims during the policy period. For each no-claim year, you accumulate 10% NCB, the highest NCB being 50% after five years. The catch about NCB is that most car owners think it requires you to stick with the same insurer. However, the reality is that NCB is portable. No matter what NCB percentage you have collected with one insurer, you can always carry it forward to the next insurance company you opt for. As long as you are not making any claim, it will not matter if you change your insurer every year. Your NCB amount will remain intact.

Fact #3: You get roadside assistance with the correct add-on

Roadside assistance is an absolute must in a large country like India. This is because you never know where and when you might be stranded due to poor road conditions or a malfunctioning car. Seeking help might be challenging, especially in semi-urban or rural areas. And, if you rely on third-party roadside assistance firms, you will end up paying a lot of money as a subscription fee and then pay more money on a per-instance basis when you use their support. Thankfully, insurance companies have started offering roadside assistance as an add-on to car insurance. Just select this add-on when you buy car insurance. It is much cheaper than third-party subscription plans.

Fact #4: You can buy various add-ons to protect your vehicle

Apart from getting a comprehensive car insurance policy, you can choose different add-ons to stay financially protected in situations where major damage is involved, or you need to make a big claim. Some such add-ons include Engine and Gearbox Protection Cover, Downtime Protection, Return to Invoice Cover and Zero Depreciation Cover. Add-on covers such as Engine and Gearbox Protection Cover and Downtime Protection will offset the deduction arising from deprecation. The other two, Return to Invoice Cover and Zero Depreciation Cover, will ensure that whatever amount you paid for the car purchase is reimbursed in case of a total loss during the insurance year.

Fact #5: You can reduce your premium price

When purchased smartly, you can reduce your car insurance premium. For instance, if you go claim-free during the policy period, you are eligible for a discount on your premium at the time of renewal. This amount can be range from 10 per cent to 50 per cent, depending upon the years you do not claim. In addition, other means such as timely renewal of your policy, opting for Voluntary Deductible or installing ARAI-certified anti-theft devices also help save car insurance policy premium. In short, if you understand your policy well, you can get better coverage for less!

Key Takeaway

Now that you are armed with insider information about car insurance, picking the right policy should be a piece of cake! Remember, the selection of car insurance policy and insurance provider should happen after conducting due diligence. Researching well, comparing products online, reading reviews and considering these lesser-known facts while making your purchase will help you opt for tailor-made coverage as well as save money!

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales.

This blog has been written by:

S. Gopalakrishnan | Motor Insurance Expert | 40+ years of experience in insurance industry

A veteran in insurance industry. S. Gopalakrishnan is a name to reckon with in the field of reinsurance, he has headed the Reinsurance department and has rich experience in other fields of motor insurance. He loves to share his opinion on latest topics in the insurance industry and how he can help people in safeguarding their assets using insurance products.

---

Few Other Articles:

• The anatomy of a great car insurance – A complete guide for beginners

• Be smart, make the right choice – Always purchase car insurance online

• Ten Commandments of the wise to save more on car insurance premium

---

• 
• 
• 
•