8 Things You May Not Know About Your Comprehensive Car Insurance Plan

Posted on: Jan 23, 2023 | | Written by:

8 Things You May Not Know About Your Comprehensive Car Insurance Plan

Published on January 23, 2023. EST READ TIME: 4 minutes

The modern era has made life a lot simpler for everyone. From accessing financial documents online to buying insurance with just a few clicks, digital facilities are a blessing. Previously, to buy a car insurance plan, you had to make several trips to the insurance provider’s office and wait for a long time until the paperwork got done. Now, you can instantly buy car insurance online while you sit at home! There are several other interesting facts like this about motor insurance that you may not be aware of. Take a look at this article to know all about them.

1. Motor insurance online is fast, affordable, and convenient1.

This is one of the best and most interesting facts related to comprehensive motor insurance - it is fast, convenient, and affordable. You can find the best car insurance plans on the internet these days. All the leading motor insurance companies are present online and a majority of the covers are sold digitally. You can access the plans at any time and from anywhere and this makes them highly convenient. Also, since the plan is directly bought from the insurer, you save up on the brokerage amount, the administrative fees, etc., and get the plan at a cheaper rate. And finally, the plan gets issued to you as soon as you buy it, making it a quick and easy way to get car insurance.

2. You can opt for long-term insurance.

This is another interesting fact about comprehensive insurance that not many know of. Comprehensive motor insurance plans can be bought for a longer time period instead of the usual 1-year term. There are several benefits of buying a long-term plan. First and foremost, you don't have to worry about forgetting the renewal date and your policy lapsing. Then, you also get a financial benefit as the premium amount gets locked in and doesn't get affected by inflation. Usually, the premium increases each year, but when you have a three or five-year plan, you pay the premium upfront in the first year and forget about all the worries for the remaining policy period.

3. The coverage goes beyond accidental damage.

When you buy car insurance online, you usually think of getting the damages covered when there is an accident. However, the scope of motor insurance goes much beyond this. You get several other covers in your car insurance plan, including a personal accident cover where your family is paid a death benefit if you happen to lose your life in a mishap. This apart, the third-party liabilities are also covered under a comprehensive policy. Then, you can get added covers such as a roadside assistance cover, the return to invoice cover, and the zero depreciation cover. Make use of all the benefits your vehicle insurance plan offers and get wholesome coverage.

4. The no-claim bonus is an advantage.

There is an element called the no-claim bonus in car insurance. This is a bonus you earn for being a good driver and not making any claims during an entire policy period. The NCB is usually offered in the form of a discount on the premium of the succeeding policy tenure. You can get huge discounts and savings when you have and use the NCB. the NCB accumulates each year and can go up to as much as 50%. Also, when you buy a new car or port from one insurer to another, the NCB can be transferred to the new policy as well. This is because the NCB is a reward for the driver and can be used by him or her individually on the current plan.

5. It is possible to reduce the insurance premium.

Yes, you read that right - it is actually possible for you to have the car insurance premium reduced. You can do this in several ways. First and foremost, look to buy car insurance online. As mentioned above, the car online plans are cheaper than the offline plans so you make savings when you purchase the policy online. Then, look to install some safety devices in the car. When the car is safe and protected, the risk of theft reduces, and the insurer changes a lower premium. You can also lower the premium by adjusting the deductible component. When you agree to pay a higher deductible, the premium is lower, and vice-versa. Decide on a logical deductible amount, and your premium will be favourable too.

6. The depreciation factor is real

The car and all its parts are subject to depreciation. This is because, with time, the value of the vehicle and accessories drop. When you make a claim, the depreciation is taken into account, and the claim amount is decided accordingly. As a result, you get a much lower amount even when the bills are higher. This may be seen as a disadvantage of car insurance, but there is a way in which you can navigate around this issue, and that is by getting the zero depreciation rider along with the comprehensive car insurance plan. When you have this rider in place, the depreciation is not considered at the time of the claim, and you get the highest claim amount possible. Please note that this is a feature available only with comprehensive plans and not with third-party car insuranceplans.

7. Renewals are extremely important.

The car insurance plan that you have is very effective, but you can only enjoy the coverage as long as you have a valid plan. If you don't renew it on time and the policy expires, you cannot make a claim. This holds true for even one day. Say, for example, your policy lapses on the 14th of January, and you meet with an accident on the 15th, and you still cannot make a claim. This is why you should be very careful and disciplined about car insurance renewals. Set reminders or ask your bank to have an autopay option for car insurance renewals. If you allow the policy to stay in a lapsed state for too long, it may be cancelled, and you will lose the entire coverage, along with any bonus and reward, such as the accumulated NCB.

8. ALL vehicles need insurance

It is a legal mandate for all vehicles plying on the roads of India to be insured. Hence, you need an insurance plan whether you have a new and expensive car or an old and cheap car. Basic third-party insurance coverage is compulsory, but you can choose to buy the comprehensive plan optionally. However, it is always recommended to get comprehensive plans as they offer protection to your own vehicle, something that is very important and crucial.

In conclusion

Now that you know more about the facts related to car insurance online, you can go ahead and get a plan whose features and covers you fully understand. Remember that the insurance needs vary from person to person. Hence, you need to make an assessment of your car insurance needs, select a suitable policy and then reap all of the benefits listed above.

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

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