Dark secrets that your car insurance companies won’t tell you - Greyfont

Dark secrets that your car insurance companies won’t tell you


You purchased a car of your dreams, bought a car insurance that your dealer insisted you to buy and now feel cheated? Harsh but it is the reality! Your dealer certainly didn’t bother to tell you what is covered and what is not as per your insurance agreement and neither did you bother to ask before signing those doted lines. Here it was the dealer and next time while car insurance renewal it would be the insurer!


Do you think even car insurance providers inform you each and everything related to your car insurance? No. They too keep some secrets while issuing you a car insurance policy. This article will throw light on such dark secrets which you ought to know and might not be told by your car insurance company.


Firstly the exclusion list in the car insurance plan

Every car insurance policy has a set of certain standard exclusions which are non-payable in case of a claim.

Some of them being:

  • Drunk driving
  • Driving under the influence of sedation, narcotic or drugs
  • Driving without a valid driving license and a car insurance policy
  • Any loss or damage to the vehicle due to strikes, wars or any sort of terrorism, etc.
  • Any accident that might have taken place outside the geographical area covered by the policy

Such standard list of exclusions are always mentioned in the policy wordings. However, no insurance company will deliberately tell you about these exclusions! If you use your common sense, you would definitely be aware what to do and what not to while driving.


Secondly smaller claims will take away your NCB

No claim bonus is a reward that your insurer gifts you in a form of discount for having claim-free years. This NCB ranges from 20% to 50%. Your car insurance premium automatically comes down when you optimize your NCB during car insurance renewals. However, you would lose out on this accumulated bonus the moment you make a claim.

Therefore, raising smaller claims are lighter on pockets and shouldn’t be claimed using your car insurance policy. So, always compare the cost of damage and repairs that you would have to shell out against the premium discount you might be able to avail before registering a claim.

Your car insurance company will never let this secret out!


Thirdly concentrating on different ways to cut short the car insurance premium

Your car insurer won’t tell you different ways in which you can reduce your car insurance premium.

  • Voluntary excess is a certain amount that you will have to chip in while the rest is paid by your insurance company in case of a claim. This automatically lowers the burden of claim on the part of the insurer and defends that you as a claimant are unpretentious as you too are paying a part of the premium,
  • You get paid only the depreciated value of the car parts in case of a claim

The table below highlights the age of the car and the percentage of the depreciation based on IDV

Your claim would be rejected in case your car’s engine is damaged due to water-logging

There are a lot of areas that gets water logged in case of heavy rains. This is one of the common instance that becomes a part of the car insurance exclusion list. Your car insurance policy will not approve your claim in case your car gets damaged due to water logging. However, if you have already purchased an engine protector add-on, your car insurance claim would be accepted!


The more you accessorize your car, the more you pay the premium

The moment you install fancy devices and gadgets for the mode of entertainment, be ready to shell out extra car insurance premium. This is because, your car insurance value too rises and in turn increases your repairs cost too. Also, getting the paint job done on your car and certain other fancy things to enhance the look of your car will certainly invite a hiked car insurance premium.


Needless to say, your car insurance company will never let such dark secrets out. Why? Obviously to make money out of your car insurance policy!


So be alert and smart. Read your policy document before falling prey to your insurer’s dark secrets!


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