For first-time vehicle owners, car insurance is a completely new industry. Though driving the car safely on the road is of prime importance, insuring it with the right policy is equally significant as it can help you financially in times of distress. Insuring your car policy from a car dealer would seem to be a good idea, but not knowing all about car insurance could land you in trouble instead. So here are 10 secrets your car insurer won’t tell you.
The model of your car directly has an impact on the premium you would be paying for your car policy. Every model and make has a different rating system on the basis of which the car premium is decided on.
Being a good driver has its own share of benefits that save you not just from getting involved in an accident, but also offers you no claim bonus. As the name suggests, no claim bonus is the insurer’s reward to the policyholder for not making a claim in the preceding years. The discount ranges from 20-50% on premium payable.
Before you zero down on a particular car insurance plan, it is always a good idea to do a comparison. Comparing car insurance online gives you an idea of car insurance premium rates, coverage offered, add-ons offered, etc. The better the coverage, the higher your car insurance premium would be. Ensure that you do a comparison before you finalize on a specific plan.
Installation of security devices protects your car from theft while also decreasing your car insurance premium. Various anti-theft devices such as gear shift locks, ignition kill switches, audio alarms, floorboard locks, etc. can in fact keep your car safe and also save the cost you pay for its coverage.
When your policy lapses, it simply means that it is inactive. Driving your car with an inactive policy means that the damages caused to the car won’t be covered and you won't be eligible to receive any no claim bonus as well. Hence, it is important for you to keep your policy active at all times.
Filing a claim for minor damages could make you lose out on the no claim bonus you are eligible for. This is important as you should consider the amount of NCB you will make in comparison to the cost of damages that you are claiming for. If the repair changes are lower than the NCB you are eligible to get, then go ahead with the claim and if the repair charges are lower, then don’t miss out on the discount.
Any exterior modifications such as LED extensions, fuel alterations, body kits, roof racks, body wraps etc. can increase the premium you would have to pay for your car insurance policy. This is because your driving style is analyzed on the basis of such modifications.
Becoming a member of Automobile Association of India and Western India Automobile Association offers you discount on the premium of your insurance policy. AAI and WIAA are bodies empowered by the Motor Vehicles Act and Rules. Members of such associations are adjudged to be good drivers.
It is important to note that you can transfer your NCB from one car to another, provided you are the vehicle owner. NCB is linked to the owner of the car and not the policy or the car. So if you purchase a new vehicle, you can always ask the insurance company to issue you an NCB transfer certificate.
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Insuring your car policy from a car dealer? But not knowing all about car insurance facts could land you in trouble instead.Here are 9 secrets your car insurer won’t tell you.