Finance

10 Must-Knows About Car Insurance

You love your car! You feel indescribable pride and joy driving your car, which you bought after months of deliberation, research, and saving. Any scratch hurts. Even minor bumps keep you awake. God forbid your beloved car crashes! “Am I protecting my car enough?” is the most crucial question.

Motor insurance protects you and your car from unexpected risks. Car insurance covers the insured car, insured party, and third parties (that includes other vehicles and people). When you buy new car insurance online, the car’s value, coverage, classification, and other factors determine the premium. *

Since car insurance is mandatory in India, people don’t want to spend time researching and selecting a policy online. Close it. Period. You don’t realise this could be your worst mistake. Here are 10 motor insurance facts you must know to avoid having a useless plan in a crisis:

1. Higher the deductible, lower the premium

Car insurance companies base their rates on the amount they expect to pay you in an accident. If you raise your deductibles, the insurance company usually lowers your premium. Avoid this unless you can afford the deductibles. *

2. You can transfer your no-claim bonus

Upgraded car? Transfer NCB to your new car. Changed insurer? You can transfer your NCB to the new firm’s car insurance policy. Simple! *

3. Know about zero depreciation cover

Your best bet. This cover may settle without depreciation. In the event of an accident, a zero depreciation cover means you won’t have to pay for the damage, unlike a normal car insurance policy that factors in depreciation and settles for less. Zero depreciation covers cost more, but isn’t it worth it? *

4. Cover your car accessories too! 

Many motor insurance companies can cover car accessories. This is an accessory-specific add-on. Your policy additions may raise your premium, but this is your best long-term option. Your car insurance mobile app should give you all the details. *

5. Insure the engine too

Did you know you can add an add-on to cover your engine and save money on non-accident repairs? This add-on will save you time and money on engine repairs, especially those caused by flooding. * ##

6. Lost key/breakdown assistance 

Car insurance can cover breakdowns and lost keys. Check if your car insurance covers these events. If it does, the on-road repair cover could help you with a mechanic, towing, accidental repairs, and tyre and tube replacement! Lockout assistance replaces car keys/locks. That’s comprehensive car insurance—the kind you need. *

7. Dealer insurance? Maybe not

You look at all the paperwork and want to drive away in your new car. You opt for convenience. The dealer provides car insurance. Is that wise? Do blank cheques make sense? The easiest way may not be the best deal. Politely refuse the dealer and research. Compare policies and choose the best long-term option. You can check this in any app for car insurance.

8. Don’t let your policy lapse

Insurers don’t like uninsured drivers. They’re reckless investments. Letting your car insurance lapse may cost more than you think. The new policy will cost.

9. Bundling insurance helps 

Have a large family with multiple cars? Total insurance would be expensive. Asking for bundled car insurance may help. This will reduce all car premiums and save you money. ##

10. Insurance companies charge different rates

This is contrary to popular belief. Each insurer’s risk assessment formula determines coverage costs. Thus, no insurer will charge the same. Therefore, buying a policy without comparing rates may result in gross overpayment! Check your app for car insurance.

A good auto insurance policy gives you financial and mental security while driving. Choose carefully after comparing rates.

* Standard T&C Apply

## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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