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Things you probably did not know about car insurance

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Good to know that you have a car insurance policy or at least third-party liability insurance. But do you know every nitty-gritty aspects of your car insurance policy?  No wonders, many of you end up paying more for a car insurance plan than what is required and other’s only find out what they are missing when it’s already late. The reason is simple—few of us delve into the fine details.

So, here is a guide to help you learn more about the lesser known aspects of a car insurance policy=

  1. Waiving of towing fee= If your car is damagedto the extent that you can’t drive it to the nearest garage, you would obviously get it towed to the service centre. However, what you may not know is that your insurer will reimburse your towing charges under a basic car insurance policy. Usually, an upper-limit for the amount that will be reimbursed by the insurer is specified in the policy document. Also, you can claim for your towing charges multiple times until the total claim amount is paid. The insurer will reinstate the towing charges cover at the time of policy
  2. NCB will be restored if you reinstate your lapsed insurance policy within three months= If due to any reason, you forget to renew your car insurance policy, your coverage ceases to exist. So, what happens to the No Claim Bonus (NCB) that you might have accumulated over the years? There is a tenure of 90-days during which you can renew your lapsed insurance policy and get your NCB transferred to a new insurance policy.
  3. Short-term car insurance= It is illegal to drive a car in India without third-party liability insurance cover. So even if you are driving your car for a shorter duration, you can opt for a short-term car insurance. Such kind of policy can insure your vehicle for a duration as less as one month. However, such policies are more costly than normal insurance policies.
  4. Installation of safety equipments in a vehicle= In light of the rising incidences of vehicle theft in the country, it is believed that vehicles installed with safety equipments are less likely to be targeted by anti-social elements and thus, result in fewer insurance claims. So, if your car is equipped with safety equipments, you can approach the insurer to get easy premium rates. Additionally, if these safety equipmentsare approved by the Automobile Research Association of India (ARAI), you can further get a discount on insurance premiums.
  5. Add-on covers to safeguard car accessories= There are some extra covers which you can avail to secure specified accessories of your vehicle. For instance, if you have installed a CNG/LPG kit in your vehicle, the basic car insurance policy will not cover it and you would have to pay extra premium to get it insured.
  6. Go with a comprehensive car insurance policy= For many people, car insurance is an extra expense which they want to avoid as much as they can and therefore, they prefer to go only with a third-party liability insurance cover to avoid the penalty of Rs 2,000. However, in reality, it may cost you more in the long run. What you want to buy is third-party insurance, which only covers damages caused by your vehicle to another vehicle or person. It means, there is no cover for your vehicle. To get complete coverage, you should go with a comprehensive car insurance policy which in addition to covering the other vehicle or person, also insures you and your vehicle. Then there are riders which you should add to your main car insurance policy to expand your cover. Stranded in the middle of a road because your car runs out of fuel? 24X7 roadside assistance rider can come to your rescue by offering you services like flat tyre change, towing service, battery jumpstart, etc. Then there is zero depreciation cover which ensures that you get the entire claim amount without any deduction for

Getting a minimum insurance coverage is not a right move. Sure, it may save you some money, but it will prove costly in the long run when you would have to pay your car repairing expenses from your pocket.

  1. Discount on third-party insurance premium rates= If you consider yourself as a safe driver who can avert third-party collisions, then you can request your insurer to reduce your third-party liability coverage. This reduction will lower your insurance premium also.
  2. Driving license is not required to buy a car insurance policy= As an owner has an insurable interest in a vehicle, a car insurance policy can only be issued in the name of an owner who needs not to have a valid driving license or be the sole driver of the vehicle. It is fine if you have a driver for your vehicle. However, the insurer will settle claims only if the driver was holding a valid license at the time of the accident.

As they say, ignorance is bliss, but the same can’t be said in the case of car insurance. So, read your car insurance policy document carefully to make its optimum use.

Author Bio-

“Ruchir Chauhan is a creative story teller (because someone has to get their hands dirty) who has dispersed his words around topics like technology, travel, health, auto content and home improvement. His work reflects a grin of knowledge, imagination and a fun element. Lover of road trips, animals, pizza and peanut butter, he is often found reading on the beach while sipping his favourite drink.”

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